One-Way? Two-Way?—Understanding Your Auto Insurance

It is not always easy to understand insurance jargon. Thankfully, at Lareau, we love making our passion understandable. What does one-way and two-way auto insurance actually mean?

The Fundamentals of Your Auto Insurance Policy

Having two-way insurance does not mean that you are covered when driving on two-way streets. Before getting into the matter in depth, let’s go over the basics. Do you know what your auto insurance policy covers?

1. Civil liability coverage to cover others:

In Quebec, this coverage is mandatory for you to purchase before getting on the road and covers you for all damage that you may cause to others. We suggest coverage of $2 million for this clause, since it is extremely important and relatively inexpensive.

When you insure your vehicle with civil liability coverage only, this is referred to as “one-way” auto insurance. This means that your insurance covers others at all times, but your vehicle is only covered when you are not at fault during a collision between two vehicles.

2. Coverage for your vehicle in the event of property damage:

While this type of coverage is not mandatory for you to purchase before getting on the road, it is essential if you want your vehicle to be repaired or replaced in other situations. Such coverage is included in “two-way” auto insurance. The technical terms are explained below:

• B2: Collision or upset. This covers damage caused by a collision for which you are at fault, as well as that caused by a hit and run. It is important not to forget that you generally have to pay a deductible when you make a claim.
• B3: All perils other than collision or upset. This covers damage caused by, in particular, fire, theft, or vandalism, as well as auto glass breakage, and even damage due to a collision with an animal. In this case, once again, you would need to pay the amount of the deductible in most instances, and your insurer would pay the remainder of the cost of repairs.

Recap: One-Way vs. Two-Way Auto Insurance

In short, having two-way auto insurance means that you are covered for the most risks possible.

If you choose to purchase one-way auto insurance, you need to be even more careful and calculate your risks properly.

While the different terms used for auto insurance coverage can sometimes cause confusion, our brokers at Lareau are here to advise you and help you understand the clauses in your policy. Feel free to contact us if you have any questions—it will be our pleasure to assist you!