You’ve been in a vehicular collision. Your first instinct is to ensure that you, anyone in the vehicle with you, and anybody in any other vehicle involved are OK. In this case, luckily, everyone has escaped significant injury. You’ve called the relevant authorities and tow-truck drivers, if necessary. The adrenaline and shock are starting to wear off. Now you’re thinking, “Will my insurance cover this?”

Collision repair and auto insurance

People love to complain about auto insurance. And to be fair, they often have a good reason. But not only is automobile insurance required by law, it serves a critical purpose. Professional auto body repair can be expensive. If your vehicle requires a major collision repair, having to pay for it all yourself could represent major financial difficulty. This can be stressful and life-disrupting, and it would be especially galling if the collision occurred through no fault of your own.

So, while you may be aggravated when you make your monthly insurance payments, you may well be glad you have insurance when it comes to auto body repair. Or… you may be more frustrated than ever, because there are times when insurance doesn’t cover a collision repair. But why? When does insurance cover auto body repair and when does it not?

What does your insurance cover?

If you’re a first-time vehicle owner, you’re probably very curious about what collision repair services auto insurance covers. If you’re a long-time driver, however, you probably already know the answer, or at least, where to find the answer. Because the truth is, there are innumerable different policies offered by insurance companies, all of which cover different auto body repair services and varying dollar amounts of collision repair.

So, the best way to find out what repairs and services your auto insurance covers is to review your insurance policy and/or contact your insurance provider. If you’re shopping for insurance, make sure to ask questions of different providers and solicit detailed answers about just what kinds and amounts of collision repair their policies cover. You can also work with an insurance broker to find the best policy that covers what you want.

But there are general rules and trends in Canada regarding auto insurance policies and how much collision repair they cover.

Different types of automotive insurance

To understand insurance and what types of auto body repair policies often cover, it’s helpful to explore the different types of auto insurance available in Canada.

Third-party liability coverage

This type of policy covers damage and bodily injury that you cause to other parties. For example, if you hit another car, your insurance provider will pay for the collision repair of that vehicle, and potentially the medical bills of the other party as well.

Collision coverage

The nature of this insurance is in its name; it covers collision repair costs. Such a policy would pay for the repairs your vehicle requires after a collision for which you are culpable. So, if you’re in a bit of a rush to get out of a parking garage and reverse right into a concrete pillar, your insurance provider will pay to repair damage to your back bumper.

Comprehensive coverage

This type of insurance is “comprehensive” because it covers damage to your vehicle that results from non-collision events. This includes fire, flooding, impacts from falling objects, theft, and vandalism. So, if a branch falls off a tree in a windstorm and crushes your vehicle or somebody steals your car, comprehensive coverage will pay for it.

Mechanical breakdown insurance (MBI)

An MBI policy works kind of like an extended warranty. In the event of a mechanical breakdown, the insurance policy will cover the cost of repairs. So, if your engine fails, an MBI will pay for the necessary auto body repair.

Direct compensation for property damage (DCPD)

A DCPD policy pays for collision repair that’s necessary as a result of damage caused by other drivers. So, if a driver rear-ends you because they were following too closely behind, your insurance provider will cover the cost of the resulting auto body repair.

Uninsured motorist insurance

This kind of policy covers repairs if you’re involved in a collision with an at-fault driver who is underinsured, uninsured, or unidentified. For example, if another driver hits your vehicle and they don’t have a high enough coverage amount to pay for the entire collision repair, this policy will make up the difference. Likewise, if somebody does a hit-and-run on your parked vehicle and you have no way of knowing who, this policy will cover the collision repair costs.

What about deductibles?

One more thing to understand about automotive insurance policies is the role of the deductible. Some policies, such as comprehensive coverage and collision insurance, often require policyholders to pay a deductible before the insurance policy kicks in to cover the remaining repair costs. This means that you, as the policy holder, will have to pay a certain amount before your insurance pays anything.

For example, let’s say you’ve been involved in a collision and you file a claim with your insurance provider. The auto body repair shop gives you a quote of $2,000. Your policy has a $500 deductible. That means you must pay $500 out of pocket, and the insurance provider covers the remaining $1,500 of the collision repair. Policies with higher deductibles often require lower premiums (monthly payments).

What’s right for you?

The right policy for you depends on your circumstances and what you’re comfortable with. Whatever your insurance policy covers, it’s critical you go to a reputable, professional auto body repair shop that will provide honest and accurate quotes and perform high-quality auto body repairs.