“Understanding Your Vehicle Insurance: ‘One Way’ vs. ‘Two Ways’ Coverage”
could you explain the difference between insuring your vehicle “one way” and “two ways.” Learn how to make the right choice for your auto insurance coverage
Are you wondering how to navigate the world of vehicle insurance and make the right choice for your coverage? Fanny, our insurance adjuster, is here to help you understand the difference between insuring your vehicle “one way” or “two ways.”
Why You Need Car Insurance
The primary purpose of auto insurance is to safeguard vehicle owners against financial loss in the event of an accident involving their vehicle. Whether it’s damage to your vehicle or harm caused to someone else, auto insurance steps in to cover the losses, in accordance with the contract’s terms and conditions.
Is Auto Insurance Mandatory?
Yes, in Canada, auto insurance is mandatory. All vehicle owners must have at least liability insurance coverage. This type of coverage, known as civil liability, protects against property damage or bodily injury caused unintentionally to others. Typically, insurers offer civil liability coverage with limits of $1,000,000 or $2,000,000.
Understanding “One Way” Coverage
When your vehicle is insured “one way,” it means that you have opted for civil liability coverage only. This implies that the insurance contract will cover damage caused to others, but any damage to your own vehicle will not be covered. “One way” coverage serves as the minimum required insurance and is suitable when your vehicle’s value is relatively low, and you are willing to bear the cost of your vehicle’s damage in the event of an accident.
Exploring “Two Way” Coverage
“Two way” coverage offers more extensive protection. It covers not only damage you may cause to others but also damage to your own vehicle. This insurance contract provides coverage for collisions, rollovers, and additional risks like theft, vandalism, hail, or fire.
The “In Between” Option
If your vehicle is aging, and you want to save on your insurance policy without entirely switching to “one way” coverage, you have another option. You can choose an “in between” approach by insuring your vehicle “one way” for civil liability and adding coverage for risks other than collision and rollover, such as fire, theft, vandalism, and broken windows. This allows you to reduce your insurance premium by removing only one part of the coverage, specifically the collision and rollover.
Choosing the Right Coverage
When deciding on your insurance coverage, consider the current value of your vehicle and your financial ability to cover expenses in case of an accident. If your vehicle still has a creditor, it must be insured “both ways” to protect the creditor’s interests and meet its requirements. In general, if your vehicle is relatively new, it’s advisable to insure it “both ways” for peace of mind.
Making the right choice for your vehicle insurance coverage ensures you can drive with confidence and peace of mind. As you navigate the winter season, remember to adapt your driving to winter road conditions, maintain a safe following distance, and minimize distractions.
With Fanny’s insights, you’re well-equipped to make an informed decision regarding your auto insurance coverage.