Car Insurance for Students

Accident benefits coverage will cover medical expenses, rehabilitation costs, lost wages, caregiver fees and possible funeral benefits if you, your passengers or pedestrians are injured in a car accident, regardless of fault. Availability and requirements vary by province.

Uninsured motorist insurance protects policyholders from out-of-pocket expenses if they are hit by an at-fault driver who is uninsured or underinsured. It also extends coverage to hit-and-run incidents and is mandatory in most provinces, including Alberta and Ontario, where it remains mandatory after the July 1, 2026 reforms.

Direct compensation-property damage (DCPD) kicks into effect if you’re hit by an at-fault driver who damages your vehicle. Rather than dealing with their insurance company, DCPD allows policyholders to handle their insurance claim with their own provider to ensure they are swiftly and fairly compensated for their losses. DCPD applies in Alberta, Ontario, Quebec, New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. In Ontario, it is included by default, but drivers can choose to opt out.

Collision coverage compensates you if you are involved in an at-fault accident that damages your vehicle, whether it be with another vehicle, a stationary object like a power line or due to rolling your car over. As young drivers are statistically more likely to be involved in a car accident due to their inexperience behind the wheel, adding collision to your plan is recommended, especially if you live off campus and commute to and from school multiple times a week.

Comprehensive coverage protects young student drivers from paying for damages to their vehicle that arise from non-collision events like theft, vandalism, fire, severe weather conditions and wildlife collisions. Whether you’re parked on campus or at home, according to Équité, auto theft continues to cost Canadians more than $1 billion in insurance claims each year. This, paired with the record-breaking $2.5 billion in claims from severe weather events in 2025 alone, makes adding comprehensive coverage to your plan worthwhile.

All perils combine collision and comprehensive coverage. It’s essentially a broader version of car insurance that protects you against a wide range of hazards, minus perils specifically stated in your policy. This endorsement will cost more, but it does offer better protection on and off the road.

Specified risks cover only the hazards listed in your auto insurance policy, offering less coverage to policyholders at a cheaper rate, which can come in handy if you don’t drive often or have an older car and want to save money on your insurance premiums.

Loss of use coverage helps cover alternative transportation costs when your vehicle is undergoing repairs following a covered loss. This could be anything from a rental car to public transit or rideshare apps until your vehicle is returned to you, ensuring you can still make your lectures, study groups and other commitments.

Roadside assistance is ideal for students who travel to and from campus multiple times a week and to part-time jobs. This policy helps cover the cost of towing, tire changes, fuel top-ups, battery boosts and vehicle lockouts, so you’re never left stranded without help on the way.

If you’re planning on purchasing a new car, consider adding a waiver of depreciation to your student car insurance policy. It guarantees that you are covered for the entire value of your car, without considering depreciation. This means that if your car is stolen or totalled in a car accident, your insurance company will reimburse you the amount you originally paid for the car, not what it was worth at the time of the loss.

One final type of optional car insurance coverage popular among student 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. Note: coverage varies by province.