Accident Forgiveness Coverage

Accident benefits kick into effect if you, your passengers or pedestrians suffer bodily injuries in a car accident, regardless of fault. Should injuries occur, accident benefits can help pay for medical expenses, rehabilitation, lost wages, caregiver fees and funeral benefits. Some level of accident benefits coverage is mandatory in most provinces and territories; however, the scope of mandatory benefits and limits varies. This coverage is mandatory in all provinces and territories, except Newfoundland and Labrador.

Uninsured motorist insurance protects you if your vehicle is damaged by an at-fault driver who is uninsured, underinsured or unidentified (hit-and-run), helping reduce or eliminate out-of-pocket expenses. This coverage is included or required in most provinces, though how it’s structured can vary.

If an at-fault driver hits and damages your vehicle, direct compensation-property damage (DCPD) takes effect. DCPD permits policyholders to manage their insurance claims with their own provider rather than with the other driver’s insurance company, which can help streamline repairs and compensation. DCPD is mandatory in Alberta, New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island.

Collision coverage provides compensation for damages if your vehicle collides with another driver, a stationary object or if your car rolls over. While this coverage is optional, you may be required to carry it if your vehicle is leased or financed. Given that vehicle repair costs have steadily increased by 28% since 2022, as a result of inflation, supply chain issues and other factors, collision coverage is recommended, as it helps ensure your primary out-of-pocket expense is your deductible.

Comprehensive coverage protects you against vehicle repairs and replacements that arise from non-collision incidents, including theft, vandalism, fire, severe weather conditions and wildlife impacts. In 2025 alone, severe weather-related claims in Canada reached a record-breaking $2.5 billion, highlighting why many Canadians choose to add comprehensive coverage. Again, you may also be required to carry this if your vehicle is leased or financed.

Loss of use coverage comes in handy when your vehicle is being repaired following a covered event and you still have places to be. Whether you decide to hop on public transit, use a ride share app or rent a car, your incurred costs may be covered by your insurance provider until you get your car back.

All-perils insurance combines both collision and comprehensive coverage, offering policyholders the broadest form of protection on and off the road. You’ll receive coverage for all perils, excluding the ones specifically listed in your plan, making it a great option for those with recently purchased vehicles.

Specified perils only protect against perils specifically listed in your policy documents. While it does offer less protection to policyholders, it often yields low premiums and is ideal for older vehicles or cars left in storage for the majority of the year.

Roadside assistance is great for drivers who commute to work daily, enjoy taking road trips or those travelling long distances. Should you find yourself stranded on the side of the road due to a vehicle breakdown, roadside assistance can assist you and help cover costs like towing, battery recharges, fuel top-ups, tire changes and key lockouts.

Waiver of depreciation can make a world of difference in terms of your insurance payout when your vehicle is stolen or written off, especially if you just recently purchased a new car. After one year, your car’s value may decrease by around 20% of what you originally paid, meaning you’d receive a smaller payout from your insurer. With this endorsement, your insurance provider may compensate you for the original purchase price of your car, rather than its depreciated value.