COLLISION AND UPSET

Collision and upset auto insurance¹ provides “two way” coverage. What does this mean?

• A vehicle is said to be insured “one way” when it has only civil liability coverage. In the event of an at-fault accident, only damage caused to third parties is covered by the insurance policy. Damage to your own vehicle is not covered.
• “Two-way” insurance, on the other hand, covers damage you may cause to others as well as damage to your own vehicle.
• It covers the cost of vehicle repairs or replacement, based on the vehicle’s estimated value at the time the damage occurred.
• Your financial institution may require you to add collision and upset coverage if your vehicle is financed, or the lessor may require it if your vehicle is leased.

Collision and upset coverage applies in the following cases:

• Collision with another vehicle
• Collision with the ground or an object
• Collision with an animal or person
• Rollover
• Hit-and-run

It is especially valuable in the following situations:

• Your car skids and flips over as you swerve to avoid hitting animal crossing the road.
• The car in front of you brakes suddenly and you can’t stop your vehicle in time to avoid rear-ending the vehicle in front, causing damage to your vehicle.
• Your neighbour’s vehicle is parked in the street in front of her house. While backing out of your driveway, you unfortunately hit her car door, damaging your vehicle in the process.
• You go to run some errands and when you get back to your vehicle, you notice that someone hit it and the rear bumper has been damaged. That’s a hit-and-run accident.

In cases of theft, fire, vandalism, glass breakage or weather damage, you will be covered by all perils except collision and upset insurance.

¹ Chapter B2