However, what is covered by your auto insurance is up to you. The minimum insurance coverage required by your province is known as one-way insurance. This insurance protects you if you cause another driver to get hurt or their car to get damaged; it covers you “one-way” for liability to others. If you get hurt in an accident, the minimum coverage requirements also protect you. But if your car gets damaged, you’re only covered in certain situations.
Going with standard coverage might lead to a cheaper insurance premium. However, it holds you financially accountable for any damage to your vehicle that you could have avoided.
How do you know if the standard coverage is enough and if you need to add extra coverage that you can choose from?
It depends on how prepared you are to take on repair costs for your specific vehicle model.
Have you ever needed to drive a vehicle one way and wondered if insurance would cover it? Maybe you rented a car for a road trip or bought a used car to drive home Or perhaps you need to transport your vehicle to a new city or state Whatever the reason, you likely asked yourself – can I get insurance for a one way trip?
The answer is yes! One way car insurance is absolutely a thing.
In this comprehensive guide, we’ll explain everything you need to know about one way insurance You’ll learn what it is, why you need it, how it works, and where to buy affordable one way policies Let’s get started!
What is One Way Car Insurance?
One way insurance, also called single trip insurance, is a temporary policy that provides coverage for a one way trip in a personal or rental vehicle. It’s designed for situations when you need to drive a car in one direction without returning back the same way.
For example, you may need one way insurance if you:
- Rent a car on vacation and drop it off at a different location
- Drive your car to relocate cross-country
- Buy a used car in another state and need to drive it home
One way policies provide the state minimum liability limits, along with comprehensive and collision coverage, for your one way drive. It’s basically short-term insurance tailored to your specific trip.
Once your trip is complete, the one way policy expires. It is not meant for long-term or everyday vehicle insurance.
Why Do I Need One Way Car Insurance?
Anytime you drive a vehicle you don’t own on public roads, you need car insurance. One way car insurance fills this requirement by providing liability and physical damage protection for your one direction journey.
Here are some common reasons you would need one way insurance:
Renting a Car for a One Way Trip
If you rent a car and plan to drop it off at a location other than the pick up spot, a one way rental likely requires one way car insurance.Rental car companies provide state minimum liability insurance, but not comprehensive or collision. One way insurance adds this critical physical damage coverage.
Driving Your Car to Relocate
Moving cross-country with your personal vehicle? Regular car insurance likely won’t cover out-of-state transport. Purchasing one way insurance for the trip provides seamless coverage as you drive state-to-state.
Buying a Used Car in Another State
When you purchase a used car in another state, one way insurance lets you legally and safely drive it home. Most dealers do not include temporary insurance with used car purchases.
Borrowing a Friend or Family Member’s Car
If you need to drive a borrowed car one way for any reason, one way insurance gives you coverage protection on the vehicle during the trip. This avoids having to add your name to the car owner’s policy.
Without proper one way insurance in any of these situations, you risk driving uninsured. This exposes you to tickets, fines, license suspension, and personal liability for accidents. Don’t take the chance – one way coverage keeps you legal and protected.
How Does One Way Car Insurance Work?
One way car insurance provides the same core coverages as a standard auto policy, just condensed into a short-term policy for your drive.
Here are the key components included:
Liability Insurance
Like regular car insurance, one way policies include bodily injury and property damage liability at state minimum levels. This coverage pays for harm you cause others in an at-fault accident. State minimums range from $10,000 to $25,000 per person and $15,000 to $50,000 per accident.
Comprehensive & Collision Insurance
Physical damage coverage pays for damage to the vehicle you’re driving. Comprehensive covers damage from weather, fire, theft, vandalism, and animal collisions. Collision covers accidents with other vehicles or objects.
Uninsured/Underinsured Motorist
This add-on coverage protects you if you’re hit by a driver with no or insufficient insurance.
Roadside Assistance
Some one way insurers include 24/7 roadside assistance for problems like lockouts, flat tires, jump starts, or towing.
Once you select coverages and policy limits, the insurance company issues a binder number confirming your coverage for the specified trip dates. The policy activates as soon as you start driving and expires once you reach your destination. It’s that simple!
Who Offers One Way Insurance?
You can purchase one way car insurance directly from several national insurance carriers:
Allstate – Allstate offers One Way Trip Insurance through independent agents nationwide. Policies can be bound same-day by phone or online.
Geico – Geico has a specialized program called TripInsurance that provides one way coverage. You can get a quote and buy a policy completely online.
Progressive – Drive Smart insurance from Progressive offers convenient one way insurance options for cars, RVs, motorcycles, and commercial vehicles.
The General – The General’s one way product is designed for students, military, vacationers, and vehicle transports. You can bundle roadside assistance for full protection.
Safeco – Safeco RightTrack coverage insures rental cars, borrowed vehicles, and car transports with quick online quotes and policy purchase.
There are also insurance brokers and agencies that provide quotes from multiple insurers:
- Insuremyrentalcar.com
- 1-800-ONE-WAY-1
- Pathway Insurance
- GAINSCO Auto Insurance
Wherever you buy, make sure to get quotes from a few providers as pricing can vary. Most let you get an instant online quote with just your trip details.
What Does One Way Insurance Cost?
One way insurance premiums depend on several factors:
- Trip length – Longer distances cost more to insure
- Vehicle type – Rates are higher for sports cars, luxury vehicles, RVs
- Driver age – Teen and elderly drivers have higher premiums
- Credit scores – Better credit means lower rates
- Location – Costs are higher in urban areas and specific states
- Coverages & limits – Comprehensive/collision and higher liability limits increase price
On average, one way insurance costs between $50 and $500 for a cross country one way trip. For shorter same-state transports, expect rates starting around $10 per day.
Bundling comprehensive and collision with minimum liability limits often gives you the best rate. Getting quotes from multiple carriers ensures you find the most competitive premium.
What Are the Benefits of One Way Insurance?
One way car insurance provides unique benefits tailored to your exact transportation scenario:
Convenience – Policies can be purchased and activated entirely online in under 15 minutes. No agent appointment needed.
Flexibility – Coverage applies to rental cars, borrowed vehicles, personal cars, and small commercial vehicles like pickups.
Affordability – Average per day costs are very reasonable, especially for short term use.
Peace of mind – Drive with confidence knowing you have specialized coverage for your trip.
Legality – Valid insurance prevents fines and penalties in every state you drive through.
Ease – No need to change existing insurance or get added as a driver. One way policy keeps things simple.
Customization – Tailor coverage to your exact situation and budget. Add-ons provide enhanced protection.
For virtually any one way car trip, this specialized insurance offers convenience, affordability, and legal compliance.
One Way Insurance Provides Total Coverage Protection
Whenever you hit the open road in a borrowed, rented, or newly purchased car, one way insurance keeps you fully covered. It provides essential liability, collision, comprehensive, and add-on coverages tailored to your specific one-way trip.
One way policies offer advantages like:
- Quick online quotes and policy purchase
- Convenient short-term coverage
- Affordable premiums
- Custom options to fit your needs
Driving a car out-of-state or across the country requires specialized insurance. One way policies fill this need and give total peace of mind.
Now you can drive with confidence knowing your unique trip is fully protected! For your next rental car journey, vehicle transport, or cross-country trek, make sure to get a fast one way insurance quote online from providers like Allstate, Geico, and Progressive. With coverage for any situation, you can hit the road worry-free.
One-way car insurance in Ontario
In Ontario, a one-way car insurance policy refers to four types of coverage that will deem you fully insured. These are:
- Third-party liability coverage
- Accident benefits coverage
- Direct compensation – property damage (DCPD) coverage, and
- Uninsured automobile coverage.
These cover you for any damages or injuries you cause another party. You’re also covered for any injuries you endure as a result of a collision. But your policy will only pay for up to your policy limit of damage to your car or its contents if you were not at fault.
That means you will have to buy comprehensive insurance or collision coverage if your car needs repairs in any other situation, like if something falls on it or if you cause an accident and are at fault.
It can be dangerous to drive without these coverages, especially if your car has expensive parts and costs a lot to fix. And soon, the Insurance Act will change to let people in Ontario choose not to be covered by DCPD. This means that getting only the bare minimum coverage could be even riskier. You will get a lower premium, but in many cases, the trade-off of less coverage may not be worth it.
Should you get one-way car insurance?
It only makes sense to drive with little or no car insurance if your car is old and you’re a careful and safe driver. Unless you have insurance, if you get into an accident, are found to be at fault, and have to pay to fix your car, you’ll have to pay for it yourself.
Most of the time, the average car owner can’t afford to pay for repairs on brand-new cars with expensive parts or high-tech features when they happen.
You could have your car stolen even if you don’t get into an accident. This is especially true if you drive one of Canada’s most stolen cars. In this case, you’d have no help paying for a replacement vehicle.
Before even considering one-way car insurance, make sure your vehicle doesn’t have many kilometres left in it.
Last but not least, you should make sure you can live without a car because you’ll have to pay a lot for a rental car that you might have to keep for longer than planned because of a lack of auto parts.
Understanding Auto Insurance: What’s ‘Full Coverage’ Car Insurance?
FAQ
How do I know if my insurance is one way or two way?
What is the difference between 2 way and 1 way insurance?
What is insurance in one line?
What is insurance in a simple way?
What is the difference between one way and two way insurance?
Understanding the differences between One Way and Two Way Insurance is essential for making informed decisions about vehicle coverage in Ontario. While One Way Insurance provides specific protection for vehicle damage, Two Way Insurance offers a broader range of coverage options and additional benefits for policyholders.
What is one way insurance?
One way insurance is insurance that does not cover the policyholder but instead protects others when the policyholder is at fault in an accident. It’s usually a good option for drivers who own older vehicles. See what you can save on car insurance. Enter your information to see how much you can save on auto insurance. Do you own multiple vehicles?
What does one-way insurance cover?
One-way insurance includes the following coverage: Third-party liability coverage: This is what covers the cost of damaging another person’s car or property, or injuring another person in an accident. Third-party liability covers medical treatments, repairs to someone’s property or vehicle, and any legal costs you may incur.
What is one-way car insurance in Canada?
One-way car insurance in Canada is the bare minimum auto insurance coverage that covers the costs if you cause damage to someone else’s car or if you injure someone in an accident. It helps pay for the other driver’s vehicle repairs and medical bills if you’re at fault, but it doesn’t cover your own car.