What is Comprehensive Car Insurance?

With so many options to enhance your car insurance, how do you know which coverage to add to complement your existing policy? A common option you may see is Comprehensive coverage. So, what is it? Do you need it? And how much does it cost? We'll go over the details to help you decide if this extra coverage is right for you.

Although the list of hazards covered under Comprehensive coverage is generally offered by most insurers, you should still contact your insurance provider to get a better idea on what would be included in your specific policy.

Tip: If you already have Comprehensive coverage included in your car insurance but you're not sure which hazards are covered, look for the "Specified Perils" section of your policy to find the types of damage your car is protected from.

If your car is leased or financed, your lender will likely require you to have Comprehensive and/or collision coverage, so in this case it would be mandatory.

If, on the other hand, you've paid for your car outright or you now own the car after finally paying it off, Comprehensive coverage becomes optional. That means you'll likely have the choice to opt in or out of having Comprehensive coverage at any time on an active policy. Not sure if you should add or remove it from your car insurance? Here are two factors you can consider:

• Whether you have money available for repairs or to replace your car if it's damaged or stolen.
• The value of your car, factoring in its age and condition.

If you find yourself in a position where you can't afford to fully repair or replace your car if anything (non-collision related) happens to it, you may want to consider having Comprehensive coverage. That way, if any of the hazards mentioned above affect your car, you'd only be responsible for paying your agreed-upon deductible. In contrast, if you drive an older car with pre-existing damage that may not be worth fixing, Comprehensive coverage may not be necessary for you.

• The age of the car: your insurer may have restrictions or added requirements to secure Comprehensive coverage on an older vehicle.
• The car's condition: vehicles with pre-existing damage or modifications, performance enhancing or otherwise, may be ineligible.

The cost of your coverage will depend on your insurer, the province you live in, and of course, your premium and deductible amount. Since Comprehensive coverage is generally an add-on to your policy, it will be an additional cost on your existing policy and will be subject to a deductible.

Choosing the right Comprehensive deductible will come down to your individual preference. If you choose a smaller Comprehensive deductible , the cost of your premium will increase and vice versa. It's important to choose a deductible you'd be comfortable paying out of pocket for in the event of the unexpected, as you will be required to pay the deductible towards a covered claim.