Full coverage is an ambiguous term used by many when discussing automobile insurance. You will, however, not find the words “full coverage” in your auto policy wordings or documents. So, what does it mean?
When our brokers are asked about auto insurance, and whether it’s full coverage, the short answer is ‘yes’, if it includes collision and comprehensive. The long Answer is: you have the best available coverages a standard automobile policy can provide in Ontario. All Perils coverage is the best coverage available and is usually what is implied when asking about full coverage.
To most, full coverage means that everything is covered, from damage to liability. In reality, however, there are many exclusions and items that are not covered in a standard automobile policy in Ontario, such as the deductible, the drop in resale value after a collision, or the depreciation of the vehicle.
Under a standard Ontario automobile policy, some insurers exclude specific types of coverage (except for certain Accident Benefits), such as if the automobile is:
- Used to carry explosives or radioactive material
- Used as taxi-cab or otherwise used to carry passengers for hire
- Used by a person named as excluded driver
- Rented or leased to a third party
- Used by a person who sells, repairs, maintains, stores, services, or parks the automobile as part of a business
In these cases, exclusions can be purchased as endorsements from your insurance carrier to cover your various needs. Consult your insurance broker to find the coverage that best suits your needs.
Instead of asking for full coverage, ask for the best available coverage!
A BIG thank you goes out to Jeff Logan for his contribution to this post.
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