Will car insurance cover repairs? The answer depends on the type of damage and which coverage options you have in place. Your auto insurance policy could cover repairs from sudden, unexpected events like car accidents, theft, vandalism, and weather-related damage, but not routine maintenance or mechanical breakdowns.
Understanding what repairs your insurance covers will help you make informed decisions about your coverage needs. Comprehensive coverage (known as ‘all perils other than collision upset’ in Quebec) and collision coverage protect your vehicle from different types of damage, while third-party liability (known as civil liability in Quebec) insurance only covers damage to other vehicles or injury to other persons or property. The right combination depends on your vehicle's value, whether you have a car loan, and your budget.
Key takeaways
- Car insurance covers repairs from sudden, unexpected events like accidents, but not routine maintenance, mechanical breakdowns, or wear and tear.
- Collision coverage pays for repairs resulting from collision or upset when you are at-fault, while comprehensive coverage handles non-collision events like weather damage.
- Understanding your deductible and when filing a claim makes financial sense can help you avoid unnecessary premium increases.
When insurance covers car repairs
For a covered loss, auto insurance covers repairs when your vehicle sustains damage from sudden, unexpected events like car accidents, weather-related damage, theft, vandalism, or natural disasters. Your insurance company won't pay for repairs related to normal wear and tear, mechanical breakdowns, or routine maintenance.
Car insurance policies in Canada require third-party liability (civil liability in Quebec) insurance, but coverage for damage to your own vehicle is optional. Collision coverage and comprehensive coverage must be added to your policy before damage occurs. Without these protections, you'll be responsible for repair costs yourself.
Types of car repairs and their coverage
Different types of damage fall under different insurance coverage types.
Collision coverage for car accident repairs
Collision insurance covers repairs when you're involved in an accident, when you’re at-fault. This coverage handles:
- single-vehicle crashes (backing into a pole, hitting a guardrail)
- accidents where you're partially or fully at fault
- damage from colliding with another vehicle or object.
Your insurance company pays for repairs to your own vehicle up to its actual cash value, minus your deductible. If you're financing or leasing your vehicle, lenders and lessors typically require this coverage.
Direct Compensation Property Damage (DCPD) coverage for not-at-fault accidents
In some Canadian provinces, Direct Compensation for Property Damage (DCPD) is coverage that helps pay for damage to your vehicle when the third party driver is at fault, allowing you to file a claim through your own insurance company rather than the other driver's insurer.
Provinces with public auto insurance (British Columbia, Saskatchewan, and Manitoba) handle not-at-fault damage through government-run plans.
Comprehensive coverage for non-collision events
Comprehensive car insurance provides coverage for damage from non-collision events. This additional coverage handles:
- theft of your vehicle or parts (catalytic converters, wheels)
- vandalism and malicious damage
- weather damage from hail, floods, or falling trees
- fires and explosions
- glass breakage, including windshields
- animal impact (deer, moose, other wildlife).
Your insurance company pays for repairs up to your vehicle's actual cash value, minus your deductible. Comprehensive coverage is optional unless you're leasing or financing your vehicle, when lenders require it.
Full coverage: Combining protection
"Full coverage" is an informal term, not a specific policy type. It typically means adding third-party liability insurance, collision coverage, and comprehensive coverage, sometimes with additional coverage like loss of use coverage (reimburses payment of alternative transportation while your car is being repaired from a covered loss) or roadside assistance.
Repairs insurance won't cover
Your car insurance won't pay for repairs related to:
- mechanical issues from normal use
- routine maintenance (oil changes, brake pad replacements, tire rotations)
- wear and tear on parts like batteries or belts
- pre-existing damage that occurred before your policy started.
- damage from neglect or lack of maintenance.
These are normal ownership costs, not insurable events. When your car breaks down due to age or mileage, that's a mechanical breakdown your insurance policy doesn't cover.
Understanding your deductible and repair costs
Your deductible is the amount you pay before your insurance company covers the remaining repair costs. For example, with $2,000 in repair costs and a $500 deductible, you pay $500, and your insurance provider pays $1,500.
Consider:
- Increasing your deductible as a method to lower your premium but does increase the amount paid out-of-pocket,
- reviewing the deductible to ensure it remains adequate for your needs.
Paint scratches, dents, and minor damage
Minor vehicle damage may be covered depending on the cause. Vandalism like keying is covered by comprehensive insurance, while scraping a pillar in a parking garage is a collision claim.
Speak to your insurance representative, if you have any questions.
Other coverage options for vehicle repair
Car insurance coverage handles sudden, unexpected damage, but vehicle owners have other options for mechanical repairs and breakdowns.
Manufacturer warranty for new vehicles
When you buy a new vehicle, it comes with a manufacturer warranty that covers defects and mechanical issues for a set period, commonly three years or 60,000 kilometres. This warranty provides coverage for mechanical repairs unrelated to accidents or wear and tear. Please note that these are not coverages that are offered on a standard Owner’s Automobile Policy.
Extended warranty and mechanical breakdown insurance
After your manufacturer warranty expires, you might consider mechanical breakdown insurance or an extended warranty. These products cover repair costs for mechanical issues that arise from normal use. Car repair insurance is separate from your standard auto insurance coverage. Please note that these are not coverages that are offered on a standard Owner’s Automobile Policy.
Roadside assistance and loss of use coverage
Many insurance providers offer roadside assistance as additional coverage. This service helps when you have a flat tire, need a battery boost, run out of gas, or need towing. Some insurance policies include this coverage automatically, while others offer it as an add-on. Roadside assistance doesn't cover repair costs but helps you get your vehicle to a repair shop.
Loss of use coverage provides alternate transportation while your vehicle is being repaired due to a covered loss, helping you maintain mobility during the repair process.
Choosing the right coverage for your situation
Consider these factors when choosing coverage:
- vehicle value: If you drive an older vehicle with a low actual cash value, you might not need comprehensive and collision coverage. Calculate whether the coverage cost justifies the potential payout.
- financial situation: Can you afford unexpected repair costs? Optional coverage like collision insurance and comprehensive insurance protects you from large, unexpected bills.
- provincial requirements: third-party liability is always required, but rules for physical damage coverage vary. Some provinces mandate DCPD coverage, while others use public plans or rely on tort (court) system
- vehicle financing: If you have a car loan or lease, your lender typically requires comprehensive coverage and collision coverage.
- policy bundling: Combining auto insurance with home, condo, or tenant insurance often provides discounts while simplifying your coverage.
Making an informed decision about your auto insurance coverage
Understanding when car insurance covers repairs helps you choose appropriate protection for your vehicle. Auto insurance handles unexpected damage from covered events like accidents, theft, and vandalism, but not mechanical breakdowns or routine maintenance. The right coverage depends on your vehicle's actual cash value, your budget, and whether you have a car loan.
Your insurance needs change over time. As your vehicle ages or your financial situation shifts, reviewing your auto insurance coverage ensures you maintain cost-effective protection. Many drivers find savings by bundling their auto policy with home, condo, or tenant insurance while simplifying coverage under one insurance company.
Whether you're buying insurance for a new vehicle or reviewing your current policy, getting a quote online takes just a few minutes. You'll see how different coverage options affect your premiums and discover which protections provide the best value for your situation.
