Canadian Car Insurance Coverages Explained

Published: May 1, 2015

Updated: May 15, 2018

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Third-Party Liability

Liability coverage protects you in the event that you’re found responsible for damage to someone else’s vehicle or resulting injuries. It’s the only mandatory coverage in Canada, and it includes losses for injury, death, or damage, as well as medical, rehabilitation, and income loss benefits for the insured—this portion is called accident benefits.

Third-party liability limits are usually $1 million, but the mandatory levels of coverage vary by province. Drivers also have the option of increasing this coverage up to $2 million in order to protect against the rising costs of lawsuits.

Collision Coverage

Collision covers damage to your vehicle resulting from an accident, whether it’s with another vehicle or just your own.

For example, if you get into an at-fault accident, collision covers the damage to your vehicle. Or, if you hit a patch of ice and leave the roadway and there’s damage to your vehicle as a result, collision will cover any losses.

Comprehensive Coverage

Comprehensive covers any damage as a result of something completely beyond the driver’s control, such as vandalism, theft, or severe weather events. Comprehensive usually covers damage to the windshield from flying objects, like stones on the highway hitting the windshield resulting in chips or cracks.

Optional Endorsements

There are a few optional endorsements available for purchase as well, called Ontario Policy Change Forms (OPCF). A few of the more common ones are:

  • Rented or Leased Vehicles (OPCF 5) covers a vehicle you drive but don’t own (for example, if the vehicle is leased).
  • Loss of Vehicle Use (OPCF 20) covers costs associated with rental vehicles while your vehicle is being repaired.
  • Liability for Damage to Non-Owned Automobiles (OPCF 27) covers damage you’ve caused to a vehicle you’ve rented or borrowed, subject to a deductible.

Whatever your policy needs, be sure to use our instant quote tool to find out how much you could be saving!