All Perils Coverage: What It Covers and How It Works

What is all perils coverage?

All perils coverage is an optional type of car insurance coverage that combines collision or upset coverage with comprehensive coverage for the highest level of physical damage protection available in Canada. This “all risks” insurance product covers all causes of loss that can damage your vehicle except for those listed on your policy as excluded. 

In addition to the coverage included under collision and comprehensive coverage, all perils coverage adds financial protection for theft by a household member, which is excluded by comprehensive coverage. 

Despite the name, all perils coverage does not cover literally all causes of loss that could damage your vehicle. Instead, the “all perils” name refers to the combination of collision or upset coverage, which deals with damage caused by collisions, and comprehensive coverage, which deals with fire, theft, vandalism, and other non-collision perils.

What isn't covered by all perils coverage?

Common exclusions from all perils coverage include routine wear and tear, damage caused by illegal activities, and intentional damage. 

Check your car insurance policy for a full list of exclusions. A standard list may include: 

• Mechanical breakdown (e.g., engine failure or brake malfunctions)
• Wear and tear (e.g., rust)
• Intentional damage including arson
• War and terrorism

Certain activities may void your all perils coverage for damage that would otherwise be covered. For example, collision damage may not be covered if: 

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• The vehicle was being driven by an unauthorized or excluded driver
• The vehicle was being driven in an illegal manner (e.g., for street racing)
• The vehicle was being operated in the commission of a crime
• The vehicle was being driven for an unauthorized use such as ridesharing or food delivery

How do all perils deductibles work?

All perils car insurance uses a single deductible for both collision and comprehensive claims. Your all perils deductible is a set dollar amount that you agree to pay out of pocket on any covered claims. 

The primary advantage of a single all-perils deductible rather than separate deductibles for collision and comprehensive insurance is simplicity in the event of claims. You don’t have to determine whether the claim is a collision or comprehensive claim in order to choose the correct deductible; your deductible is the same in both cases. 

All perils vs. comprehensive vs. collision coverage

All perils car insurance refers to the combination of comprehensive and collision coverage, along with additional protection against theft by a household member or employee.

All perils vs. specified perils coverage

All perils coverage should not be confused with specified perils coverage, a limited form of comprehensive that covers only named perils. 

Unlike all perils coverage, which covers all causes of loss except those listed as exclusions, specified perils coverage only covers a specific list of named perils. These typically include: 

• Fire
• Lightning
• Hail
• Windstorm
• Theft or attempted theft
• Rising water
• Explosion
• Earthquake
• Riot or civil disturbance 

Specified perils typically does not include coverage for vandalism or damage caused by animals, which is covered by comprehensive coverage as well as by all perils coverage.

How much does all perils coverage cost? 

For single adult drivers in Ontario, all perils coverage typically costs $45–$75/month on top of the cost of mandatory coverage. 

Keep in mind that the cost of all perils coverage depends on a number of factors, from driver age and location to the value and number of the vehicle(s) you’re insuring. Your premium may reflect: 

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• The statistical rate of at-fault accidents and vehicle thefts associated with your postal code
• The average rate of collision and comprehensive insurance claims recorded for your vehicle’s make and model
• Any endorsements added to your coverage, such as loss of use coverage for a rental vehicle
• Your driving experience
• Any past car insurance claims, accidents, or driving convictions on your personal record

The cost to add all perils coverage to your insurance policy is typically identical to the cost to add both collision or upset and comprehensive coverage.

Do you need all perils coverage?

All perils coverage is optional, but it’s recommended by insurance professionals for most drivers in Ontario. If you own a vehicle and can’t afford to replace or go without it, all perils car insurance is typically worth the added cost. 

If your vehicle is financed or leased, your lender contract likely requires you to maintain all perils coverage for the duration of your loan or lease. 

Mandatory auto insurance in Ontario only includes third-party liability coverage, accident benefits, and direct compensation property damage (DCPD) coverage. With these minimum benefits, you’ll only have coverage for damage to your vehicle if it’s damaged in a collision and another driver is found partially or fully at fault. All other vehicle damage, including damage caused by severe weather, theft, vandalism, or falling objects, cannot be covered without collision, comprehensive, or all perils coverage. 

How to compare car insurance coverage

All perils coverage is standardized across Ontario, so every insurance company will offer the same protection if you select this option. To compare all perils car insurance policies, look at pricing, claims processes, and endorsements. 

Request car insurance quotes with optional all perils coverage from at least three insurance companies. 

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• Compare pricing: Which car insurance company charges the lowest premium to add all perils protection? 
• Research claims handling: Which company makes it easiest to file a claim? Speak to family, coworkers, and friends about their experiences with each company’s claims process and research reviews online. 
• Consider endorsements: An all perils policy can be modified and enhanced with optional coverage known as endorsements. Look for the insurer with the endorsement product or bundle that best matches your needs.

FAQ: All perils coverage

This article is for general information only and is not insurance or legal advice. Examples and any sample quotes or rate ranges are illustrative and do not constitute an offer or guarantee of coverage, price, or eligibility. Actual coverage, discounts, and premiums depend on your individual circumstances and the insurer provider; if there is any discrepancy, your policy and insurer documentation govern. For advice about your situation, speak with one of our licensed insurance professionals.