Physical Damage

On an automobile policy this is damage to the automobile or loss of the vehicle as a result of collision, fire, impact with an animal theft or other such perils. This coverage for the vehicle is declared under Section C of the policy.

If your vehicle has a lien or is leased then you will have a requirement to carry certain limits of physical damage. This is usually set at a maximum $1000 deductible for Collision and Upset and $500 deductible for Comprehensive. It is more common to see $500 deductible for Collision and Upset with a $250 deductible for Comprehensive. Ask your broker to determine the rate for both so that you can make an informed decision.

If you choose not to place physical damage on your vehicle and you have an accident then you will not receive help in this area from your own insurer. If you have been hit by another driver then that driver's policy will have to respond for any payment to repair your vehicle. Since you chose not to purchase Collision and Upset coverage your insurance has nothing to defend. If you find yourself in this situation then do discuss options with your agent or broker.

Most of the insurance companies regard hitting an animal on the road as a Comprehensive claim rather then a Collision. This is better for you as it usually means a lower deductible and in provinces with at fault coverage, you will not affect the driving record.

Specified Perils coverage is quite a bit less expensive then the Comprehensive section but it will not include vandalism or impact with an animal coverage. Again, it is best to talk over your options with your broker or agent when making decisions as to how much and which areas to cover for physical damage.