Add-On Coverages: Which Are Worth It on Your Car Insurance? – a look at extras like rental car insurance, “loss of use,” etc.

Because nobody wants to be stuck paying for a rental car out of pocket—or worse, stuck on the side of the 401 wondering what they were thinking when they clicked “skip” on roadside assistance.

So, here’s the deal.
Standard car insurance in Canada? It’s like plain toast—essential but kind of bland. Add-ons are the jam, butter, and maybe even a little bacon if you’re feeling fancy. But which extras are actually worth spreading on your policy?

We’re not here to upsell you like a call centre agent. We’re here to break down what each car insurance add-on does, when it really helps, and which ones might just be money down the drain.

Let’s slice through the fluff and get to what matters.

🛻 Rental Car Coverage: The Temporary Ride Lifesaver

Imagine you’re rear-ended on a Friday and your bumper’s toast. Now you’re Ubering to work, to your kid’s hockey practice, and back—$20 here, $30 there. This is where rental car coverage saves the day.

What it does: Pays for a rental while your car is in the shop after a covered accident.
When it’s worth it: If you don’t have a second car or work remotely, yes please.
What it costs: Around $5–$10/month depending on your insurer.

🧠 Pro tip: It often doesn’t cover luxury rentals or if your car is written off. Read the fine print.

👉 More info here – InsuranceHotline’s rental car coverage guide

🚌 Loss of Use: Transit Included?

This one’s like rental coverage’s cooler older sibling. Loss of use includes not just rentals, but Uber, taxis, public transit—whatever gets you moving after an accident.

Best for: City dwellers who prefer transit or rideshare when the car’s in the shop.
Available from: Insurers like Desjardins, Belairdirect, and Intact.

🎯 Real world? “Carly from Toronto racked up $215 in Ubers while her car was in the shop. Her $6/month loss-of-use coverage handled every penny.”

🛠️ Roadside Assistance: Is CAA Still King?

Yes, CAA exists—but many insurers now offer in-house roadside help, sometimes cheaper or bundled.

Coverage includes: Dead battery, towing, flat tires, gas delivery.
Top picks: TD Insurance (optional), Belairdirect (well integrated into app).

👀 Already have a roadside plan via credit card? Skip this one and save the extra charge.

💥 Accident Forgiveness: Because Mistakes Happen

One little oops, and your premium can skyrocket. Unless you’ve got accident forgiveness.

What it is: Your first at-fault accident won’t increase your rates.
Who offers it: Intact, Aviva, Desjardins (optional or included depending on history).
Worth it? 100%. Especially if you’ve got a clean record and want to keep it that way (in the insurer’s eyes, at least).

👉 Learn more via Ratehub’s breakdown

🔻 Disappearing Deductible: A Loyalty Reward?

Here’s the deal: For every year you drive without a claim, your deductible shrinks.

$500 becomes $400… then $300… and so on.
Best for: Safe, long-term drivers who hate surprise costs during a claim.
Available from: TD and Aviva offer variations.

👏 It’s like cashback, but for car insurance. Not a bad perk.

🚗 New Car Replacement Coverage: Depreciation, Be Gone

You just bought a shiny new $35K car. Total it two weeks later, and guess what? Standard coverage gives you depreciated value, not the full price. Yikes.

Enter Depreciation Waiver Coverage.

Insurers offering it: Most majors—Aviva and Intact stand out.
Good for: Anyone buying or leasing a car less than 2 years old.

📍 So… What’s Actually Worth It?

Add-On	Worth It If…	Skip It If…
Rental Car Coverage	You rely on your vehicle daily	You have a spare car
Loss of Use	You live in a city or rideshare often	You work from home or don’t commute
Accident Forgiveness	You’ve never had a claim	You’re high-risk and already pay more
Roadside Assistance	You travel long distances	You already have CAA or similar
Disappearing Deductible	You drive safely year after year	You switch insurers frequently
Depreciation Waiver	Your car is brand new	You’re driving a 2009 Civic

🚦Final Word: Add-Ons Aren’t “Extras”—They’re Smart Tools

Insurance isn’t just about legality—it’s about being prepared. The right add-ons can save you hundreds, even thousands, at a time when you’re already stressed and frustrated.

But don’t just click “yes” on every checkbox. Instead:

✅ Think about your routine
✅ Consider your tolerance for financial risk
✅ Compare add-ons between providers

You’re not just protecting a vehicle — you’re protecting your time, your wallet, and your peace of mind. Choose wisely, and drive smart.

Want more help?
Check out our blogs on Accident Forgiveness in Canada and Collision vs Comprehensive Coverage Explained

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