Skip to main content
Ratehub logo
Ratehub logo

How collision insurance works in Canada

Compare car insurance quotes with collision insurance from Canada's top providers, for free. It takes less than 5 minutes to find the coverage you need.

How to compare car insurance quotes with Ratehub.ca

  1. Share information

    Tell us a little about yourself and your auto coverage needs.

  2. Compare quotes

    We instantly show you auto insurance quotes from top Canadian providers.

  3. Save money

    Choose your quote and secure your car insurance rate online.

A few things we're proud of

  • 1,200,000

    monthly users

  • 11 years

    young

  • Over 1M

    better choices made

  • Trusted partner

    to Canada’s top financial institutions

What is collision insurance?

Collision insurance pays for damage done to your car as a result of an accident, either with a stationary object like a guardrail, or with another person’s vehicle. It’s an optional form of coverage in every province except in Manitoba and Saskatchewan, where it is bundled into the mandatory coverage provided to drivers by the provincial government.

With collision coverage, your insurance company pays to repair or replace your vehicle if you are at fault. You're responsible for paying the deductible – the portion of money you have to pay before your insurance provider will pay the rest. You set your deductible amount; a higher deductible is one way to save on car insurance, but it also means you’ll pay more should an accident occur, before receiving any payment from your insurer. Typically, people will set a deductible between $500 to $1,000, but it can go as high as $5,000. If you are not at fault, you will instead be covered by your Direct Compensation Property Damage policy.

Read: What does optional DCPD mean for Ontario drivers?

How much is collision insurance?

The cost will vary based on your insurance provider. Your insurance company will look at several factors including your driving history, the current value of your car, type of vehicle and your deductible amount. Talk to your broker to find out how much it costs for your particular vehicle to add collision coverage.

If you have an older car and think your collision will be less since its value is less, know that an older vehicle doesn’t necessarily get cheaper collision coverage.

Read our blog for more info: Do you need collision coverage on an older car?

Are you considering collision insurance?

In under 5 minutes, you can compare multiple car insurance quotes with collision insurance coverage from Canada's top providers - it's that easy.

Do you need collision insurance?

If you lease or finance a car, your lender will require collision coverage. If you own your car, collision coverage is optional. Before declining or removing collision from your car insurance policy, consider these four main factors:

The value of your vehicle


The cost of your deductible


Your financial situation


What your insurance provider will pay


Examples of how collision insurance works

You're at fault in an accident and have collision insurance


You're at fault in an accident and have no collision insurance


You're not at fault and have collision insurance


You're not at fault and have no collision insurance


Frequently asked collision insurance questions

Is collision insurance mandatory?


What's the difference between comprehensive and collision insurance?


How much should my collision insurance deductible be?


Will collision insurance cover my vehicle if it's parked?


What is accident forgiveness?


Is it better to have a $500 deductible or $1,000?


Matt Hands, Business Director of Insurance

With 6+ years of experience at Ratehub.ca, Matt’s focus has been on growing its newest business unit, Insurance. He is a thought leader and a valuable resource to respected publications across Canada. read full bio

Learn more about insurance

read more articles

The knowledge bank

A wealth of knowledge delivered right to your inbox.

By submitting your email address, you acknowledge and agree to Ratehub.ca’s Terms of Use and Privacy Policy. Contact us for more information. You can unsubscribe at any time.

About Ratehub.ca

Whether you need a mortgage, credit card, savings account, or insurance coverage, we help you find and compare the best financial products for your specific needs.

When it comes to mortgages, Ratehub.ca is more than just a place to research and compare the best rates. Our goal is to give Canadians the best mortgage experience from online search to close. This means offering Canadians the mortgage tools, information and articles to educate themselves, allowing them to get personalized rate quotes from multiple lenders to compare rates instantly, and providing them with the best online application and offline customer service to close their mortgage all in one place.

Ratehub.ca has been named Canada's Mortgage Brokerage of the Year for four years straight (2018-2021). With over 12 years of mortgage experience, and over $11 billion in mortgages funded, we deliver you the best mortgage experience in Canada.

How does Ratehub.ca make money?

Financial institutions pay us for connecting them with customers. This could be through advertisements, or when someone applies or is approved for a product. However, not all products we list are tied to compensation for us. Our industry-leading education centres and calculators are available 24/7, free of charge, and with no obligation to purchase. To learn more, visit our About us page.

read more about us