For those on the hunt for cheap auto insurance, one way auto insurance is an option that some drivers consider in order to get the best rates. In this post, let’s look at some considerations of this type of insurance coverage and the important points to keep in mind when deciding if it’s the right fit for you and your situation.

One-way auto insurance defined

One-way auto insurance is the minimum legal coverage required for a car in Ontario (learn more about mandatory coverage here). In short, one way auto insurance refers to coverage that only applies to the other driver when you are at fault for an accident. The other driver would be compensated for any damage, while you and your car would not. Learn more in this post: Insurance Terms Defined – One Way Auto Insurance.

Considerations for one-way auto insurance

If you’re thinking about one-way coverage to get the best insurance rates possible, let’s talk about in what types of situations this might make sense and other things it’s important to think about.

~ It’s cheaper than the usual two-way coverage (could be up to 50% less), but that of course comes at a price. You are not covered. So choosing this type of coverage puts you at significant risk and exposure. You’re on the hook to cover any repairs related to your vehicle out of pocket.

~ Driver an old clunker that’s really not worth much? In this case, one way coverage could make sense for a car that would be inexpensive to fix up or replace completely.

~ What about if you get in a car accident that was not your fault? You should be covered in most instances, but there are exceptions. For example, one of the other drivers must be covered by a licensed insurance provider from Ontario.

~ An accident is not the only thing that auto insurance will cover. If your car is stolen and you only have a one-way policy, you’re on the hook for the damages or replacement cost. If your car falls prey to a fire, or is damaged in some sort of a weather event for example, you would not be covered.

Want to learn more about one way auto insurance? Wondering if it’s the right call for you? It’s always best to talk to an insurance professional to understand the repercussions of foregoing a particular type of coverage in your hunt for cheap auto insurance. Get in touch with one of the specialists on our team to learn more. Or head over here to get your quote online.

This post is intended to provide general information for educational purposes only and is not meant to cover all terms, conditions and exclusions that are found in different insurance policies or government policies. If there is any inconsistency between this information and the definitions in your policy, it is your policy that governs. The use of the information in this post is at your discretion.