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What Is One Way Insurance? Ontario Car Insurance Explained.

What Is One Way Insurance In Ontario | KBD Insurance
Curtis Killen

As president of KBD, Curtis aims to simplify insurance for his clients. He’s helped lead KBD to become one of Canada’s fastest 400 growing companies according to the Globe & Mail.

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One way insurance is a low cost car insurance policy that provides minimal coverage.

Q: What is one way insurance?

What does that even mean? 🤔

Understanding One Way Car Insurance in Ontario | KBD Insurance

No worries. We’re here to clear up the insurance jargon.

A: In Ontario, one way car insurance covers you for non-responsible accidents when it comes to physical damage to the car, and if you cause bodily injury to someone else.

One way car insurance includes Ontario mandatory coverages like direct compensation – property damage (DC-PD) and uninsured automobile coverage.

But for the sake of keeping this blog simple, here’s what you need to know:

With one way car insurance, if someone else hits your car, you’ll be covered.

But you WON’T be covered if:

  1. You’re responsible for the accident (Yes, this even includes spinning out on black ice)
  2. Your car is stolen
  3. Your car is damaged by fire or vandalism
  4. There’s glass breakage

Since it doesn’t cover so many things, what’s the point of one way car insurance?

Well, there’s one main perk, and that’s savings.

Depending on your priorities and the type of car you have, one way car insurance could save you a lot of money on your monthly car insurance premium.

For example, here are a few of the upsides of one way car insurance coverage:

  1. It’s up to 75% less expensive than two way car insurance (which covers nearly everything)
  2. You avoid paying for collision coverage (aka: responsible accident protection), which can be the most expensive to insure
  3. If you drive a beater and don’t want to spend a lot insuring it, one way car insurance can be a good option

So if your biggest goal is to save money, one way coverage car insurance could work for you.

If you’re not sure about whether it would be a good fit, you can give your car insurance broker a call.

They’ll help clear things up.

But, when is one way insurance not the right option?

There are times when it pays to… pay more.

Sometimes it just makes sense to buy more car insurance coverage.

For example:

  1. If you can’t afford to replace your vehicle out of pocket
  2. If you have an expensive vehicle that you want to be fully insured
  3. If you want the extra peace of mind of being covered if you’re in a responsible accident
  4. If you want to be covered in the case of car theft or damages
  5. If your car is financed or leased; the lender will force you to carry full protection

In these cases, you might want to consider (or be required to) purchasing two way coverage to insure your Ontario vehicle.

You can get a quote from our Ottawa office, or give the KBD Ontario team a call and we’ll help you find the right coverage.


So, there you have it.

One way car insurance covers you for the physical damage to your car in non responsible accidents, and if you cause bodily injury to someone else.

It can be a good option for people who want to reduce their car insurance rates, and for those who don’t drive an uber expensive car.

Still have questions? Give the Ontario insurance broker team at KBD a call.

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