It’s a common and important question for many Canadians: What happens if your car is damaged while parked in your driveway or garage? At first glance, it might seem logical to assume that because the damage occurred on your property, your home insurance policy would step in. After all, your driveway and garage are part of your home. However, this assumption is misleading and could leave you exposed to significant financial loss.
The truth is that home insurance and auto insurance serve very different purposes. Each policy is designed to protect a separate type of property, and they rarely overlap. If you want protection for your home and your vehicle, you must understand this distinction.
Here, we’ll explain the separation between home and auto insurance, outline scenarios where both policies may be involved, and show you how to get the best protection in Ontario.
Home Insurance is for Your Home
Your home is likely your largest and most valuable asset, which is why protecting it properly is so important. A standard home insurance policy in Ontario is designed to safeguard:
These policies cover risks such as fire, theft, vandalism, windstorms, burst pipes, and other named perils. For example, if a windstorm damages your roof or a burst pipe floods your basement, your home insurance policy is there to help with repairs and replacement.
Auto Insurance is for Your Vehicle
Unlike your house, your car is treated as a separate asset. It requires its own insurance policy under Ontario law. Auto insurance protects against risks specific to vehicles, including collisions, theft, and vandalism.
This coverage applies no matter where your vehicle is parked — whether in your driveway, at a shopping mall, or on a city street. However, it is important to note that not every type of damage is automatically covered. For incidents unrelated to driving, such as a tree falling on your car, you need comprehensive coverage as part of your auto policy.
A home insurance policy is structured to cover your property and the belongings inside it, but it specifically excludes motor vehicles. This exclusion exists because vehicles are subject to different risks and liability exposures than houses.
For example, your home insurance may cover tools stolen from your garage, but not the car parked beside them. Similarly, it may cover damage to the garage itself if a fire breaks out, but not the damage to your vehicle inside.
To protect your car, you must rely on your auto insurance policy.
In Ontario, mandatory auto insurance includes third-party liability and accident benefits. These components protect you if you cause an accident or suffer injuries in a collision. But they do not cover damage to your car when it is parked.
That’s where comprehensive coverage comes in. This optional add-on covers non-collision-related damage, including:
Without comprehensive coverage, you would have to pay out of pocket if your parked vehicle were damaged by these events.
Although home and auto insurance are separate, there are situations where both policies may respond to the same incident. Here are three common examples:
If a fire breaks out in your attached garage and damages both the structure and your parked car:
In this case, you would need to file two separate claims.
Severe weather is a frequent concern in Ontario. If a windstorm knocks down a tree that damages both your garage and your car:
Again, both policies would come into play, each with its own deductible.
This scenario highlights the one real exception to the “no coverage” rule. While your auto policy covers vehicle theft or damage, it does not typically cover the theft of personal belongings from inside the car.
If someone breaks into your car and steals your laptop or golf clubs:
In this case, you might need to submit claims under both policies.
Understanding the difference between home and auto insurance is only the first step. To make sure you are fully protected, consider the following strategies:
Review Both Policies
Take the time to go through your home and auto insurance policies. Pay attention to coverage limits, exclusions, and deductibles. Knowing what is covered — and what is not — prevents surprises during a claim.
Consider Bundling
Many insurers in Ontario offer multi-line discounts when you bundle home and auto policies with the same company. Beyond saving money, bundling can also simplify claims. For example, if a fire damages both your garage and your vehicle, some insurers will only require you to pay the higher of the two deductibles, instead of both.
Add Comprehensive Coverage
If your goal is to protect your car from risks while it is parked, adding comprehensive coverage is essential. This small upgrade can save you thousands of dollars in repair or replacement costs.
Consult an Insurance Broker
Policies can be complex, and every insurer offers slightly different options. An experienced broker can explain the differences clearly, compare offerings across providers, and recommend coverage that suits your lifestyle, assets, and budget.
At Begin Insurance, we know that navigating the details of home and auto insurance can feel overwhelming. That’s why our licensed brokers are here to simplify the process. We work with a wide range of trusted insurance companies across Canada to compare policies and help you find the right coverage at the best possible value.
Here’s what we can do for you:
Our goal is to make insurance straightforward, transparent, and customized for your needs.
Posted Jul 4, 2019