Our Insurance Comparison Tool allows you to pick the Physical Damage policy that's right for you and your car by comparing every plan offered by Canada's leading insurance providers. At a loss? Check the Frequently Asked Questions at the bottom of the page.
Compare Auto Physical Damage Insurance Policies
Frequently Asked Questions(click to expand)
What Is Auto Physical Damage Insurance?
Who Needs Auto Physical Damage Insurance?
Several types of vehicle are able to be insured under an Auto Physical Damage insurance policy:
- owned auto (auto owned by a named insured)
- hired, rented, leased or borrowed auto
- non-owned auto (vehicles used in business but not owned or leased by them)
Any vehicle such as a car, truck, trailer or van is eligible for APD insurance as long as they fit the above criteria.
Depending on the use of the vehicle it is possible to buy either a Personal Auto insurance policy or a Business Vehicle insurance policy.
What Does Auto Physical Damage Insurance Cover?
- collision coverage: describes losses resulting from a collision of a covered vehicle with any object or from the vehicle overturning
- comprehensive coverage: providing for losses from causes such as mechanical breakdown, flood, fire, theft, glass breakage, falling objects, explosion, earthquake or collision with a bird or animal
- specified perils coverage: similar to comprehensive coverage but instead of being all-inclusive it only covers named risks.
Some Commercial Auto insurance policies also include towing and labour costs in their coverage, or award costs up to a specified limit.
Other features such as roadside assistance or rental vehicle coverage may also be included depending on the scope of the insurance policy.
What Is Not Included In Auto Physical Damage Insurance?
How Much Does Auto Physical Damage Insurance Cost?
The cost of APD insurance will depend on several factors such as the market value of the vehicle and the estimated cost of repairs.
The cost of the premium will also depend on the type of coverage required. A named peril policy will have a lower premium than comprehensive coverage, however this will also mean that certain types of loss or damage may not be covered, resulting in the policy owner having to pay for repairs themselves.
Coverage is not generally subject to a limit. Instead, the insurer will pay the lesser of either the actual cash value of the damaged vehicle or the cost to repair or replace it. If the cost to repair the vehicle exceeds its actual cash value, the insurer will likely declare the vehicle a total loss.
Each physical damage coverage is subject to a separate deductible but it is possible to reduce a physical damage premium by increasing the deductibles. A loss payment made by the insurer may include a deductible (the deductible may already have been subtracted). Alternatively, the insurer may calculate a loss payment without the deductible and then bill for the deductible amount.