All Perils vs. Collision and Comprehensive: What’s the Difference?
All perils vs. collision and comprehensive: Key differences
All perils, collision, and comprehensive insurance are three types of optional physical damage car insurance coverage available to vehicle owners in Ontario.
All perils combines the benefits of collision and comprehensive coverage with a single combined deductible, and also covers theft of your insured vehicle by a household member or employee.
Collision and comprehensive insurance, on the other hand, are often paired together to cover your vehicle against damage caused by a wide range of perils, from collisions (including at-fault accidents) to falling objects, animals, severe weather, and theft.
All-perils coverage
All-perils coverage has the broadest scope of any physical damage auto insurance coverage. It combines three basic components:
- Collision coverage: Pays for damage to your car caused by a collision with another vehicle or stationary object
- Comprehensive coverage: Pays for damage to your car caused by non-collision incidents (e.g., severe weather, theft, vandalism, falling objects)
- Household theft protection: Pays for loss caused by theft or attempted theft of the vehicle by a household member or employee
All perils coverage uses a single combined deductible for both comprehensive and collision claims.
Despite the name, all perils coverage doesn’t literally cover all perils. Common exclusions from an all-perils insurance policy include damage to your vehicle caused by:
- Wear and tear
- Neglect
- Earthquakes
- Intentional or fraudulent damage
- War
- Acts of terrorism
Collision coverage
Collision coverage helps to pay for damage to your vehicle caused by a collision with another vehicle or an object such as a guardrail, fence, or telephone pole. Collision insurance, also known as “collision or upset insurance,” also covers damage caused by a single-car rollover incident.
Comprehensive coverage
Comprehensive coverage helps to pay for damage to your vehicle caused by something other than a collision, such as theft, vandalism, animals, severe weather, or fire. Your policy documents should include a detailed list of each peril your comprehensive insurance covers.
Drivers in Ontario can choose to purchase specified perils coverage instead of comprehensive insurance. Like comprehensive, specified perils coverage deals with physical damage caused by something other than a collision, but it’s limited to a shorter list of named perils that don’t include vandalism and falling objects.
Is all perils better than collision and comprehensive?
All perils insurance offers the broadest possible coverage for physical damage to your vehicle. If you’re on a flexible budget and want the maximum financial protection available, all perils may be the right option.
On the other hand, all perils coverage leaves less opportunity for customization, since all-perils coverage has a single combined deductible.
Having separate collision and comprehensible deductibles means that you can raise one deductible to save money while keeping another lower to make filing claims easier.
Because collision claims are more common, many drivers choose to carry a high collision deductible to reduce month-to-month premium costs while using a low deductible for comprehensive insurance, which is more likely to deal with catastrophic losses like theft or natural disaster.
How to choose between all perils vs. collision and comprehensive
All perils, collision, and comprehensive insurance are all optional coverage under Ontario law. While lenders typically require you to carry at least collision and comprehensive insurance on a leased or financed vehicle, you’ll still have the flexibility to choose between the two coverage options.
If you want the peace of mind that comes with the broadest possible coverage, an all-perils policy may be the right option for you.
If you prefer to reduce costs and customize your coverage, separate comprehensive and collision coverage may be the better option. You’ll still be covered for the vast majority of collision-related damages and non-collision perils like theft, windstorm, vandalism, rising water, and more. You’ll also pay lower insurance premiums, especially if you choose to adjust your deductibles separately.
When you request car insurance quotes with PolicyMe (either separately or as part of a bundled auto and home insurance quote), you’ll have the opportunity to speak with a licensed insurance advisor who will talk you through all your options before your coverage is finalized.
FAQ: All perils vs. collision and comprehensive
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.