Imagine you're on your way home when a deer jumps out in front of you. You veer off the road out of instinct to miss it, but instead, end up hitting a tree - this is how quickly and unexpectedly a collision accident can happen and this is why there is value in collision insurance.

What is Collision Insurance?

Collision insurance will offer repair to your vehicle if you collide with another vehicle, an object (i.e tree), or, if your vehicle/motorcycle tips over. Collision insurance would also provide coverage in the event you hit a pothole or lose control and your vehicle is damaged upon impact with a ditch/hillside etc.…

If you lease or finance your vehicle, collision coverage is required to protect your loan or lessor; otherwise, it is optional but strongly recommended.

What if I’m not at fault for an accident?

If you’re involved in an accident where you are not at fault, you would be covered under a section of your automobile policy, labeled Direct Compensation for Property Damage (DCPD)*. No deductible will apply for repairs to your vehicle if you are not at fault.

Hit and run incidents, though not-at-fault, are covered under collision insurance – if you don't carry collision insurance you would not be covered for damage resulting from a hit-and-run.

Will my vehicle be repaired, or will I be offered a settlement?

Insurance companies will determine whether to repair your vehicle, or offer a settlement, based on the extent of damage resulting from a collision accident. If the cost to repair your vehicle is greater than its value, you will likely be offered a settlement, often referred to as a “write-off”. In the case of a settlement, you would forfeit the return of your vehicle in exchange for a financial offer of its value prior to the accident. Insurance companies refer to comparable values for similar vehicles when they offer settlements - a vehicles condition, wear, and mileage, are factors that can impact a value.

My vehicle is paid, should I remove collision insurance?

Even after your vehicle has been paid off, we strongly recommend maintaining collision insurance. Consider the value of your vehicle, as well as your personal financial situation, when you are reviewing your insurance – could you afford to pay for repairs to your vehicle in the event of a fender-bender or accident? Vehicle repair is costly, so opting to maintain collision insurance makes a lot of sense.

For example: A minor fender bender damaging a bumper and fender  estimated to cost $3000 for repair; in this scenario the cost of collision insurance is $200 per year, and the collision deductible is $500. Insurance offers a $2300 benefit to the client.

If you drive a vehicle that holds less value than the amount of your deductible, we would agree that it may not make sense to continue with collision insurance.  For example: If you own an older vehicle that you could sell today for $500, and your deductible is $500, collision insurance would not offer value.

What is a deductible?

Collision insurance is subject to a deductible. Deductibles range typically $500-$1000 per incident or occurrence and will be clearly noted on your insurance policy. This is the amount of the repair that the policyholder is responsible to pay in the event of a loss.

My vehicle is getting older, why isn’t the cost of my insurance going down?

To better understand rates, it's important to understand how insurance works. Insurance is built on the foundation that the contributions (premiums) of many, pay for the losses (claims) of few. This means that even if you have a perfect driving record with no accidents or moving violations, you may not see reduction in cost even as your vehicle ages.

Check out what you need to know about your car insurance rate here! 

Talk to Us! Visit, call, or go to www.huestis.ca/247 to review your policy and coverages.

*Always refer to your policy wordings for terms and conditions.