Collision pays to repair or replace your car after it hits something or is hit. Comprehensive pays for most other damage, such as theft, fire, vandalism or hail. All perils is simply the two combined with one deductible. None of them are required by Ontario law, but most people with a car of real value carry at least one.
Key takeaways
- Collision covers crash damage. Comprehensive covers non-crash damage. All perils bundles both under one deductible.
- All three are optional by law, but a lender or lease will usually require collision and comprehensive.
- None of them pay for wear and tear, mechanical breakdown or damage you cause on purpose.
- Your choice mostly depends on the car's value, your savings and the deductible you can afford.
Where these coverages sit in your policy
An Ontario auto policy has a mandatory layer and an optional layer. The mandatory layer is third-party liability (legal minimum $200,000, though most people choose $1 million or $2 million), statutory accident benefits and uninsured automobile coverage. Those protect other people and your health. They do not pay to fix your own car.
Collision, comprehensive and all perils belong to the optional layer. They are the coverages that protect the car itself. If you want the full picture first, read our guide to Ontario car insurance coverages explained.
What collision pays for
Collision covers damage to your car caused by an impact. That includes hitting another vehicle, being hit by one, striking a pole or guardrail, or rolling over. It generally applies whether or not you were at fault, though what happens next, including how your premium is affected, varies by insurer and claim.
Imagine you drive a 2021 compact SUV in Toronto and slide into a curb on an icy morning, bending a wheel and the suspension. Collision is the coverage that would typically respond. You pay your deductible, which is the amount you cover before the insurer pays the rest, and the insurer pays for the repair or, if the car is a write-off, its value less the deductible.
Collision is often the most expensive of the three because crashes are the most common reason for large claims. That is why it is the one people most often reconsider on an older car.
What comprehensive pays for
Comprehensive covers damage that is not caused by a collision. Typical examples include:
- Theft of the whole car, or damage done during an attempted theft
- Vandalism, such as keyed paint or smashed windows
- Fire
- Hail, flooding and other weather damage
- A tree branch or other object falling on the car
- Broken glass, depending on how your policy handles it
Comprehensive has its own deductible, which is often set lower than the collision deductible. Because a stolen or burned car is a total loss, the claim can be as large as a serious crash. Policies differ on small items like windshield chips, so ask how your insurer treats glass and whether it uses a separate deductible.
What all perils means
All perils combines collision and comprehensive into a single coverage with one deductible. Instead of juggling two numbers, you have one. Some people find that simpler to understand, and it can make a claim easier to predict, since the same amount applies whether a deer, a thief or a bad parking lot caused the damage.
Whether all perils costs more or less than buying the two separately depends on the insurer and your choices. Ask your broker to quote both ways. Our article on how deductibles work in Ontario car insurance explains how the deductible you choose moves your premium.
Side-by-side comparison
| Collision | Comprehensive | All perils | |
|---|---|---|---|
| Typical damage covered | Impact with a vehicle or object, rollover | Theft, vandalism, fire, hail, falling objects | Everything in both columns |
| Deductible | Its own | Its own | One shared deductible |
| Required by law | No | No | No |
| Often required by lender or lease | Yes | Yes | Yes, as a combined form |
What none of them pay for
This is the part that surprises people. Even with the best of these coverages, some things are usually excluded. Exact wording varies by policy, so treat the list as a guide to questions rather than a final answer.
- Wear and tear. Worn brakes, old tires and rust are maintenance, not claims.
- Mechanical or electrical breakdown. A failed transmission is not an accident.
- Intentional damage. Damage you cause on purpose is not covered.
- Personal belongings in the car. A laptop, a phone or a bag is often a home or tenant insurance matter rather than an auto one. See our comparison of condo, tenant and home insurance.
- Injuries. Medical costs after a crash fall under statutory accident benefits, not under collision or comprehensive.
- Other people's cars and property. That is third-party liability.
- A rental car while yours is repaired. This usually needs the optional OPCF 20 endorsement for loss of use.
- Loss of value from depreciation. A newer car that is written off is paid at its current value, and OPCF 43 may change how that is calculated.
Some uses and situations can also limit coverage, such as driving without a valid licence or using the car in a way your policy does not allow. Ask your broker what could lead to a denied claim.
When someone else causes the damage
You might wonder why you would need collision if another driver hit you. In Ontario, Direct Compensation Property Damage (DCPD) typically repairs your car under your own policy when someone else is at fault. Since 1 January 2024, drivers can opt out of it through an endorsement, and opting out has real trade-offs. If you opted out, collision may matter much more. Read what to know about the DCPD opt-out, then check your own policy and ask your broker.
Who should carry which
There is no single right answer, but these patterns are common.
Financed or leased vehicles
A lender or leasing company will typically require collision and comprehensive, and may cap the deductible. Our guide to leased or financed car insurance in Ontario covers what to expect.
Newer or high-value cars
If a write-off would be a serious financial blow, all perils or both coverages together is a common choice. Pair it with a deductible you could pay tomorrow without stress, and ask about OPCF 43 for a newer car.
Older cars with low value
Some owners drop collision, or keep comprehensive only, when the car is worth little. The reasoning is that the premium plus the deductible can approach what the car is worth. This only works if you could replace the car from savings, and if no lender requires the coverage.
Cars parked outside or in busy areas
If your car is parked on the street, theft, vandalism and weather are real possibilities. Comprehensive often matters even when collision is dropped. Where the car is parked also affects price, which is one of the factors that shape your premium.
What to ask your broker
- Do I have collision, comprehensive or all perils right now, and what is each deductible?
- Would all perils cost more or less than separate coverages for my car?
- How does my policy treat windshield and glass damage?
- What would be paid if my car were stolen or written off, and how is its value set?
- Should I add OPCF 20 for a rental or OPCF 43 for depreciation?
- If I dropped collision, what exactly would I lose, and how much would I save?
- Have I opted out of DCPD?
Ontario brokers are licensed by RIBO, and the Insurance Bureau of Canada publishes consumer information on auto insurance.
Before you act
Find the declarations page of your current policy. It lists your coverages and deductibles. Write down which of the three you have, then compare the premium you would save from changing a deductible with the cost you could actually absorb after a claim. When you are ready to compare options, you can start an auto insurance quote and look at coverage as well as price.
Reviewed October 2026. This article is general information and not insurance or legal advice. Rules and policy wording change, so confirm the details with a broker and the official sources listed.
