Optional car insurance coverage in Canada: What to add (and when)

Optional coverages are add‑ons that protect your budget and your vehicle beyond the legal minimums. Below, we explain the most common options; what they cover, when they’re worth it, and what they typically cost. Use the quick chooser to get a tailored list, or start a quote and a licensed broker will help you pick the right add‑ons.

Quick chooser: Which add‑ons fit your situation?

We’ll explore how your location may influence your situation below:

• New car (<24 months): Waiver of Depreciation / New Car Replacement
• Financed or leased: Collision + Comprehensive usually required
• Rent or borrow cars often: Non‑Owned Auto (extends your liability + damage coverage)
• Worried about uninsured/underinsured drivers: Family Protection
• Street‑parked or high‑theft area: Comprehensive (+ optional Glass)
• Daily driver for work/long commute: consider Collision (budget for a deductible)
• Rideshare part‑time: ask about a Rideshare endorsement

Optional auto insurance coverage for added protection

Although the types of optional coverage may vary between insurance companies, some of the most common optional car insurance you'll find include the following:

Comprehensive coverage

Comprehensive coverage, also known as parked-car insurance, covers repairs or replacements of your insured vehicle if damage or losses occur as a result of:

• Theft
• Vandalism
• Fire
• Falling objects
• Natural disasters like high winds, floods, or hailstorms.

Imagine you park your vehicle on the street overnight. In the morning, you discover your car's been stolen. In this case, you'd be able to file a claim with your insurance company to repair your vehicle if it's found or a replacement if it isn't recovered. You'll only need to pay your deductible, and your provider will cover the remaining costs up to your policy limit.

Car theft is a growing concern across Canada, with the cost of insurance claims to replace stolen vehicles reaching a whopping $1.5 billion in 2023 alone. If you live in an area with high crime rates or park on the street, this coverage is worth investing in.

Collision coverage

Collision coverage protects you if you get into an accident, whether it be a single-car accident or one involving other drivers, that damages your vehicle. If you are the at-fault driver, meaning you caused the accident, your standard auto policy will not cover damage to your vehicle, which is why most drivers opt to add this optional car insurance policy to their standard plan. Similar to comprehensive coverage, you'll need to pay your deductible to your insurance company before they'll cover any remaining costs.

Specified perils coverage & all perils coverage

Specified perils coverage protects you from perils specifically listed in your auto insurance policy. For example, fire, theft, hail, and flood damage. In contrast, all perils insurance coverage combines collision and comprehensive insurance, while adding coverage for specific situations, such as attempted theft of your vehicle by one of your family members or a civil disturbance that causes damage to your car.

Accident forgiveness insurance

Another type of optional auto insurance coverage popular among drivers is accident forgiveness. Accident forgiveness is additional coverage that can be added to your car insurance policy as an endorsement, to protect your driving record and to help prevent your insurance premium from increasing if you have an at-fault accident claim.

For example, let's say you've practiced safe driving habits throughout the years, only to accidentally rear-end someone on a snowy day in the winter. With accident forgiveness, your insurer won't increase your premium due to this incident, allowing you to maintain your clean driving record.

Loss of use & rental car coverage

Loss of use/rental car insurance will reimburse you if you need to purchase a rental vehicle or take public transit while your car is being repaired due to a covered claim. According to KAYAK, on average, the cost of a rented vehicle is $56 a day. This cost could be greater if you typically drive a truck or larger SUV.

If your vehicle is in the shop for more than a couple of days, these costs can add up quickly. With rental vehicle auto insurance, you can get to where you need to go without having to worry about these costs out of pocket.

Depreciation waiver

Also known as a waiver of depreciation, this optional coverage ensures you receive the full purchase price of your new vehicle if it is a total loss following an automobile accident, without taking into account depreciation.

For example, if your brand-new car is totalled in an accident six months after you purchased it, this coverage will ensure that your provider compensates you based on the value at purchase, not the depreciated value.

Roadside assistance

Roadside assistance provides services like towing, battery jump-starts, flat tire changes, fuel delivery, and lockout assistance.​ This optional car insurance coverage is especially important if you drive long distances in remote areas or parts of Canada with harsh weather conditions.

Optional car insurance policies: a comparison table

See the table below for a side-by-side look at optional car insurance: coverage type, scope of coverage, and who it’s ideal for:

How much does optional car insurance cost?

Cost will vary based on numerous factors such as which province you live in, your driving experience, driving record, vehicle make and model, and other statistical data that is considered when calculating your risk profile.

Are extra coverage options mandatory in any province?

Although optional coverage is not mandatory, there are certain scenarios where you may be required to purchase certain policies. For example, if you lease your car or have a car loan, your dealership or lender may require you to have both collision and comprehensive coverage to ensure that their interest is covered in the event of a loss.

For affordable coverage contact BrokerLink today!

Optional car insurance coverages offer enhanced protection tailored to your specific needs and circumstances. If you're interested in saving on your premiums without sacrificing how much coverage you have, BrokerLink is here to help!

We'll help you determine what insurance you need, find ways to help you save money on your premiums, and answer any questions you may have throughout the process.

You can contact BrokerLink over the phone to speak with a broker directly, or get an online quote using our free quote tool for a competitive estimate within minutes!

Get an auto insurance quote 1-866-724-2372