Accident protection, also known as collision and upset, protects you from expensive accidents
Protect your vehicle and your wallet from costly collision repairs. You double-check your rear-view mirror and blind spots. You look both ways at every stop sign. And you’re extra careful when navigating the shopping mall parking lot. Yet, collisions can happen to anyone. From small fender benders to full-on accidents, collision and upset insurance coverage could help you
avoid paying out-of-pocket for damage to your car.
Keep your ride rolling like nothing happened with collision insurance coverage from belairdirect.
What is collision insurance coverage?
Collision insurance coverage is an optional insurance coverage that could prevent you from paying completely out-of-pocket for repairs to your vehicle. In the event that you are found to be at-fault for an accident or you’re involved in a hit-and-run collision, the damages could be repaired if the vehicle is below the total-loss threshold. If the car is deemed a total loss, collision coverage would not apply.
Collision coverage could include covered incidents where there is no other party, like backing into the wall of your garage or a hit-and-run collision where the other driver has no insurance coverage.
Although specific benefits could vary from province-to-province, the overall benefit of investing in collision coverage is that you could reduce out-of-pocket expenses, apart from your collision deductible.
How does collision insurance work?
In the event that you damage your car in an accident with another vehicle or an object, collision insurance coverage may allow you to repair your car.
When you make a collision insurance claim, you will be required to pay the collision deductible specified in your auto insurance policy. Afterwards, your collision coverage could pay for the damages to your car up to the actual cash value of then vehicle.
In cases where you have an outstanding loan on the car or you leased it, you may be contractually obliged to have a form of collision insurance included in your policy. This allows the financing company to recoup any losses if a collision occurs. Otherwise, collision coverage is an optional coverage in all provinces.
Talk to an insurance agent to see what kind of auto insurance coverage is right for your situation.
What does collision insurance cover?
Collision coverage covers damage caused to your vehicle up to the actual cash value. This damage can stem from:
- Accidents and collisions with other vehicles
- Accidents and collisions involving other objects
- Accidents and damages caused by rolling the vehicle over
Collision insurance does not cover:
- Damage caused to another vehicle
- Damage caused to your vehicle that is normally covered by comprehensive insurance (such acts of vandalism, fire, broken glass), unless they are the result of a collision
- Medical bills stemming from bodily injuries caused by an accident
What happens if you have no collision insurance?
If ever you were to damage your vehicle in an accident where you found to be at-fault and you didn’t have collision coverage, you could find yourself paying for the damages to your car with your own money.
If you were to be deemed not-at-fault, other auto insurance coverages might cover the cost of repairs, or you may be required deal directly with the insurer for the at-fault party, depending on which province you live in.
However, if the accident was a hit-and-run incident, you would probably not be covered without collision insurance. Talk to an insurance agent to see what coverages are best suited to your lifestyle.
How are total loss collision claims compensated?
After an accident, an insurance adjuster will evaluate the condition of the vehicle. If it is not deemed a total loss (or a write off), you could be compensated by collision coverage if you are deemed at-fault.
Your insurer could then pay out an amount for your vehicle based on its actual cash value.
If you are not found to be at-fault and live in a no-fault province, your vehicle could be covered by direct compensation property damage (DCPD) coverage. Coverage varies from province to province, so be sure to check with your insurer if you have any questions.
Is it better to have comprehensive or collision insurance?
Collision insurance and comprehensive insurance are 2 very different coverages. An insurance professional will often recommend a combination of both types of coverages for your vehicle.
Collision insurance protects you from paying for damages caused to your vehicle from an accident. The accident could involve another vehicle, or you might be the only one to have suffered damage, such as by backing into a lamppost. In these instances, collision insurance could save you from paying for repairing for the damages yourself after the collision deductible is paid.
Comprehensive insurance, on the other hand, deals with covered incidents that could not have been predicted and where you had no control over the outcome. This could include a tree branch falling onto your car, instances of vandalism, or your car being stolen.
Comprehensive insurance might cover incidents that aren’t included within your collision insurance coverage. That’s why investing in both coverages may be the best solution for your driving needs. Talk to an insurance agent to see how you can get the best coverage for your needs.
What’s the difference between collision coverage and hit-and-run coverage?
Under normal circumstances, if you’re involved in an accident where you’re not at fault, the other party involved would provide their insurance information and damages could be paid based on the rules in effect in your province.
However, in a hit-and-run scenario, the other person has fled the scene of an accident and there’s no way of getting their information. You may be able to file an insurance claim and have the damages paid through another coverage or specific hit-and-run insurance coverages.
No-fault provinces may have other coverages in place at the provincial level, such as through the SAAQ in Quebec or the ICBC in British Columbia.
Talk to an insurance agent to see what insurance coverages you should have in place if ever you’re the victim of a hit-and-run accident.
Don’t let a sudden collision disrupt your routine
Don’t let an accident stop you. With collision coverage from belairdirect, you’ll could keep more money in your pocket, and your car on the road.
Get a quote online or talk to a belairdirect agent to see what kind of coverage is right for you.
Frequently asked questions about
collision insurance coverage
This means that it would cost more to repair it than what the car is actually worth. You might be offered a settlement based on the car's cash value, depending on your coverage.
It depends. If a claim settlement gets the green light, the payment can go either to you (if you own the vehicle), or to the lessor company (if your vehicle is leased), or jointly to you and to the finance company (if your vehicle is financed).
Property damage means damage to or destruction of property.
At an-fault accident is when you’re considered responsible for an accident you’re involved in.
A policy is a binding contract that outlines all the coverage you’re getting from an insurance company.
*Please note that these additional coverages are subject to the policy deductible.
** Please refer to your insurance policy for further details regarding specific benefits for your province.