One way insurance is one of the terms used when referring to Ontario auto insurance options. This option may be beneficial for drivers looking to save money, but there are certain risks with having cheaper auto insurance. For instance, it may skimp on certain coverage.
Below, our legal team explains some important things to know about one way insurance and why it may be beneficial to increase your coverage limits or obtain additional coverage to protect yourself in the event of an accident. An initial consultation is completely free with no obligation to retain our services.
What Does One Way Insurance Cover?
One way insurance is a basic type of auto insurance that provides limited liability coverage and direct compensation property damage (DCPD). In Ontario, all drivers must have some type of auto insurance. With one way insurance, you will be getting the minimal mandatory coverage required in the province.
If you are at fault in a car accident, a one way auto policy will only cover the damages done to other vehicles involved and not your own. This means you will have to pay out of pocket to repair or replace your vehicle. These expenses can be significant depending on the seriousness of the accident. Even if you are in a single vehicle accident, any damage to your vehicle will also not be covered.
One Way Versus Two Way Insurance
The difference with one way and two way insurance is the amount of coverage included in your policy.
Ontario drivers must have $200,000 in liability, basic accident benefits and compensation for property damage. This is all included in a one way auto policy, but a two way auto policy provides additional coverage that exceeds the mandatory insurance requirements.
One way insurance typically only covers any injuries and damages to someone else in an accident. However, in many provinces, such as Ontario, the DCPD portion of your policy may cover damage to your vehicle if the accident was not your fault. It is important to note that the other driver must have a policy from a licensed auto insurance company in the province.
Two way insurance offers a wider range of coverage. In an accident, it can cover damage you may cause to others and damage to your vehicle. You will also have comprehensive coverage, protecting you from vehicle theft, vandalism or fire.
Why Consider One Way Insurance?
One way insurance would be beneficial for drivers who want affordable coverage but are also insuring a vehicle that is not worth much. If the vehicle is older and the cost to repair or place it is considerably low, this may be the option for you. Having a standard two way insurance policy may not be necessary.
It is important to be mindful of the risks involved with having a one way auto policy. If your vehicle gets stolen or becomes wrecked, you will not be covered. You will be required to pay for any costs up front.
If you are considering leasing a vehicle, one way insurance is not enough coverage in most cases. You will more than likely be required to have both comprehensive and collision coverage.
Protect Your Rights After a Car Accident
At Greg Monforton & Partners, we have been protecting the rights of injury victims, including car accident victims, for over 35 years. Our firm has obtained millions in compensation for our clients.
A reputable Windsor car accident lawyer from our firm is prepared to communicate and negotiate with the insurance company on your behalf. We know what it takes to determine the full value of a claim.
There is no risk in calling us and no obligation to hire us after a free initial consultation. There are no upfront fees to take a case on and no fees while we work on a case. If you get paid, we get paid.
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