Is One Way Insurance Enough?

What is one way insurance?

One way insurance is a basic type of auto insurance in Ontario and other parts of Canada. It includes limited coverage for liability. It does not offer protection for any damage caused to your vehicle. Only damage you cause to others will be covered. This increases your risk level and means you’ll have to pay out of pocket for repairs to your vehicle.

What is the difference between one way and two way insurance?

The main difference is the amount included in your policy. One way insurance only includes third-party liability and will not provide coverage for damages to your vehicle. A two way policy provides a broader range of coverage, including collision, theft, fire, or hail.

One way insurance

• In Ontario, drivers are legally required to have $200,000 in liability, basic accident benefits, and compensation for property damage – basic policies will cover these.
• This basic policy will cover any injuries or damages to someone else in an accident.
• DCPD covers your vehicle's damages if an accident is not your fault.

Two way insurance

• Additional endorsement that exceeds mandatory requirements.
• It can be customized to fit your needs, driving habits, and budget.
• Wide range of protection from accidents, automobile theft, fire, or weather events.

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Who should consider one way insurance?

If you are looking to save money or are insuring a car that has a low value, it can be beneficial. Older vehicles commonly have a minimal one way policy. If you think your vehicle will cost less to replace than repair, you may not need additional protection. Someone may also consider basic policies if they work on cars and know how to fix them.

Pros and cons to one way insurance

The most significant debate between one and two way is if the risk outweighs the reward of saving money on your premium. Let's take a closer look at the pros and cons.

Pros

• You have the legal minimum insurance on your vehicle.
• Focuses on covering damages to the other vehicle – ideal if you own an older car.
• Policies can be less suitable for a budget-conscious driver.

Cons

• You do not have insurance for yourself - if you hit another vehicle or run off the road, your policy will not cover any of the costs associated with repairs.
• You have no comprehensive insurance so you will not be covered in the event of theft, vandalism, a hit and run, or severe weather. You will need pay for the costs yourself.

You may not have enough protection with one way insurance

Although one way policies meet the minimum requirements for auto insurance in Ontario, two way policies can offer more thorough protection.