When you’re shopping for auto insurance, there is a good chance you’ll stumble across terms and options that even long-term drivers may be unsure of. One of these may be One-Way Insurance. Is there such a thing? If you’re looking to save money and purchase a basic protection policy, this might just be the option for you. We all know that insurance is mandatory in order to get behind the wheel of a car. So, if you’re looking to do just that, continue reading below. isure has everything you need to know when it comes to one-way insurance policies.
What exactly is one-way insurance?
In order to fully understand if one-way insurance is right for you, we need to first understand what it is. One-way insurance is a basic type of auto coverage. It is a third-party liability insurance policy that does not cover the policyholder. Instead, it protects others when the policyholder is at-fault in an accident. An example of this can be Civil Liability coverage. When more coverage is added, your policy can become a “two-way” policy. This is when both yourself and the other driver are covered. In cases such as these, if a one-way insurance policy holder gets into an accident, their vehicle will not be covered. Instead, any damages done to the other driver’s vehicle will be taken care of. This is considered the minimum amount of coverage required in order to operate a vehicle.
It is crucial to keep in mind that if your car is stolen or wrecked by mother nature, you’d have to cover the cost of purchasing another vehicle or repairing yours. In situations where you are being sued due to an accident, the liability portion of your one-way policy will cover a judgement against you, up to the amount stated in your policy.
When should you consider purchasing this type of policy?
If you drive an older, cheaper vehicle, and consider yourself budget conscious, then yes! With older vehicles, it may be cheaper to repair or replace your car out-of-pocket than to pay for a standard two-way insurance policy. Of course, making sure you can afford to accept these risks is key. When it comes to how much money you’ll save, it depends on your vehicle. The more valuable your vehicle is, the more money you can save. With a high-replacement value vehicle, you can save up to 50% on a one-way policy.
The Direct Compensation Property Damage (DCPD) portion will cover damage to your vehicle if you are not at-fault in an accident. However, this is only valid if the other driver involved has a proper insurance policy.
Pros and cons to one-way insurance
Understanding if a one-way insurance policy is right for you can be difficult. The biggest question people ask when considering a one-way insurance policy is if the risk outweighs the reward when saving on your premium. A good way to help yourself decide is by taking a look at the pros and cons to one-way insurance:
Pros:
- You have the legal minimum coverage on your vehicle, thus saving you money.
- Can be ideal if you own a car, since it focuses on covering damage to the other driver.
- Can overall be a suitable option for a budget-conscious and safe driver.
- A good option if your vehicle is older.
Cons:
- You do not have your own insurance. In the event of an accident, your policy will not cover any costs associated with repairing or replacing your vehicle.
- You will not be covered in the event of your car being stolen, vandalized or damaged due to severe weather.
- In the event of a hit and run, you will not be covered.
Shopping for one-way insurance
So, you’ve decided that a one-way insurance policy is the right type of policy for you. Congratulations, this decision making is one of the hardest parts. Now, you may be curious as to the process of purchasing one-way insurance , and what is required these types of policies. As for any type of policy, it is highly recommended you shop around first to find a policy that suits you best. Remember to look at isure’s list of 22 auto insurance discounts to make sure you are getting the best prices possible. Or, just give us a call and we’ll be happy to go over your options.
When consulting an insurance broker for a quote, it is important to have the following information ready:
- Your driver’s licence number (if family members will also be driving the vehicle, their driver’s licence numbers will also be required)
- Driver history (basic information, such as number of tickets you’ve had in the past and number of accidents)
- Insurance history
- Vehicle details (vehicle make, model and VIN, and whether it’s financed or leased)
- Personal details (gender, date of birth, marital status and city you live in)
Remember, no matter what type of car insurance you are in the market for, be sure to check out isure! We aim to get you the best auto insurance rates in the province, as well as customer service you can always count on. Contact us or request a quote today.
