What “Full Coverage” Actually Means
The term “full coverage” is often used when people talk about their auto insurance, but it doesn’t refer to a specific policy. Instead, it generally means you carry all the main types of coverages: your mandatory liability protections plus optional coverages like collision and comprehensive.
In Ontario for example, mandatory coverages include: third-party liability; uninsured/underinsured driver protection; direct compensation property damage (DCPD); and accident benefits. On top of those, many add collision and comprehensive coverages to round out what they consider “full coverage.”
Why Full Coverage Costs More
Because full coverage extends beyond minimum legal requirements, the premiums are typically higher. You’re paying for protection against your own vehicle damage (collision) and non-collision events (comprehensive) including theft, fire, vandalism or weather events.
That additional protection has value — especially if your vehicle is newer, financed, or holds significant value. But it’s equally important to review whether the cost makes sense for you.
When Full Coverage Makes Sense
Full coverage tends to be a smart fit when one or more of the following apply:
- Your vehicle is leased or financed (the lender may require it)
- You’d struggle to replace the car out of pocket if it were damaged or stolen
- You drive often, or your area has higher theft or storm risk
- You prefer peace of mind and don’t want to take on much repair/replacement risk
Numerous sources explain that vehicles still in a loan or lease, or with higher value, almost always benefit from stronger coverage.
When You Might Skip Some Optional Coverages
If your vehicle is older, almost fully depreciated, or you have sufficient savings to cover a replacement, you might decide the added cost of full coverage isn’t justified. In that case, dropping collision or comprehensive may be an appropriate move — but it should be a well-informed decision.
How to Make the Right Choice
1. Review the value of your vehicle and the cost to repair or replace it.
2. Consider your ability to absorb a loss without assistance.
3. Compare your current premium for full coverage vs. a scaled-down option.
4. Discuss with your broker about available discounts (bundling home + auto, safe driver programs, higher deductible options).
5. Confirm with your financing agreement whether full coverage is required.
Final Thoughts
Full coverage isn’t right for everyone — but it can offer strong protection and peace of mind when used purposefully. The key is matching your coverage to your vehicle value, driving habits, and personal financial risk tolerance.
If you’re unsure whether your current auto policy meets your needs, our team is ready to help you compare options and make the smartest choice for your situation. Get in touch with us, today.
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