Dear valued HUB SmartCoverage client: The ongoing COVID-19 crisis is causing extremely high traffic volume and wait times may be longer than usual. We recommend that you register for online self serve to submit your request. Be sure of one thing, we’ll take care of you!
One-way auto insurance is a minimalistic policy that covers only third-party liability and direct compensation property damage. In other words, if you are in an at fault accident, your policy will only cover the damages done to the other vehicle(s) and not your own.
If getting one-way auto insurance is something that you are thinking about, there are some important things about the type of coverage you should know.
1. Minimal mandatory coverage
One-way auto insurance gives you minimal coverage. In Ontario it is illegal to drive a car without some kind of insurance, mainly third-party liability and direct compensation property damage. When choosing to go with a one-way auto policy you are getting the minimal mandatory coverage that the province on Ontario requires you to have.
2. You do not have coverage for yourself
Because you have only the base minimal coverage, your insurer will only cover the other parties involved, and not the damages made to your vehicle. This leaves you to pick up the tab for any repairs you need to make to your car. In addition, this also holds true if you are in an accident with no other vehicles or persons involved.
3. No comprehensive coverage
Another coverage downside when it comes to one-way auto insurance is that you forgo having comprehensive coverage. So, if your car is broken into, vandalized, or otherwise harmed in any way, you will be paying for any repairs out of pocket. And while even those with traditional auto insurance sometimes neglect opting in for comprehensive coverage, it is beneficial to have.
4. It is risky
Because you do not have coverage for yourself, you run the risk of having to pay a substantial amount of money for repairs or even a replacement vehicle. While there is always a level of risk involved with insurance, you pay all this money and hope you never need to use it; one-way auto insurance is a high roller level of risk. A good course of action would be to speak to your insurance broker and evaluate whether a one-way auto policy is something that could meet your insurance needs.
5. But does have its benefits
For obvious reasons, one-way auto insurance is much cheaper than a traditional auto policy. And yes, while you would have to pay more out of pocket in the event of an at fault accident, you could still save money in the long run. If you own a car that is extremely easy/cheap or fix, or you yourself are extremely proficient at fixing cars, it may be worth the risk. This is especially so if you have an older car that has lost its value, much like with forgoing collision/comprehensive coverage on a typical auto policy.