Should You Get Collision Insurance in Canada?

Collision insurance is an optional form of coverage for your vehicle’s repair or replacement costs if you’re at-fault in a car accident or collision. So, should you get collision insurance Canada? When should you drop collision insurance? Determine if this coverage makes sense for you in our guide below. You can contact us with any questions.

Should I Keep Collision Insurance?

If you’re wondering if you should keep collision insurance, consider these factors:

• Vehicle Age: If you drive an older vehicle, collision insurance may not be worth it. If collision insurance costs more than 10% of your car’s value or the costs exceed your car’s value in 3–5 years of coverage, these would be instances when you should drop collision insurance.
• Driving Record: You should keep collision insurance if you have a poor driving record, as your chances for getting into a car accident may be higher. However, even the best drivers make mistakes on the road, so having collision insurance as a safety net can provide peace of mind.
• Financing or Leasing: Collision insurance is typically required in Canada if you are financing or leasing the vehicle. Double-check your contract before dropping collision insurance.

When Should You Drop Collision Insurance?

Do you still need help determining if you should keep collision insurance? Explore some of the pros and cons of collision insurance below:

Pros of Collision Insurance

• Car accidents are already stressful enough. Collision insurance saves you the headache of having to pay out of pocket for costly repairs.
• Collision insurance protects you in various scenarios, including damages from rollovers or hitting an object, like a tree or street sign. 
• Repair costs can be extremely expensive for new vehicles and luxury models, so collision insurance will help protect you from this financial burden.

Cons of Collision Insurance

• Collision insurance increases your car insurance premium. The cost will depend on your car’s value, your driving record, where you live, and your deductible. 
• Collision insurance does not cover theft or damage from fires, natural disasters, animal collisions, and vandalism. This is handled by comprehensive insurance.

Learn More With Pfaff Autoworks

Should you get collision insurance? While it isn’t mandatory, collision insurance provides peace of mind and protection against significant repair expenses. Coverage may not make sense for every driver, particularly those with older vehicles that aren’t worth a lot of money. 

The team at Pfaff Autoworks is here if you have any questions about collision insurance or repairs, so please don’t hesitate to contact us. We’re here to help!