One-way car insurance is when a driver has civil liability coverage. If ever this driver gets involved in an accident, their car insurance policy will only cover the damages caused to the other driver’s car. Having this coverage means that your car is not covered under your insurance policy. This insurance policy is referred to as the minimum amount of coverage a driver needs to legally operate a vehicle.
One-way car insurance is one of the many terms you can use for car insurance policies. It has limited liability coverage and does not offer damage coverage for a policyholder’s vehicle. It increases your risk level and makes you pay out of pocket for repairs for damage to your vehicle. If you are looking for a way to save on basic protection. This is one of the options you can select from.
However, just as one-way auto insurance covers only the third-party driver. Also, two-way auto insurance offers a wider range of coverage, including collision, hail, and theft. This write-up contains every piece of information about one-way auto insurance.
Advantages and Disadvantages of One-Way Car Insurance?
Before purchasing one-way auto insurance, it is vital to be aware of its advantages and disadvantages. This is to help you determine if this is the best insurance coverage you need. While it helps you save money on insurance premiums, below are its benefits and downsides.
Advantages
- You get the legal minimum car insurance on your vehicle.
- Also, its policies can be less suitable for budget-conscious
- It focused on covering the damages caused to other vehicles.
Disadvantages
- There is no coverage for yourself.
- There is no comprehensive insurance coverage offered, and you are responsible for payments if your car gets stolen, or is involved in a hit-and-run, theft, or any other event.
Due to these, most drivers determine if one-way auto insurance is good enough for their car’s needs or not. However, drivers looking for auto insurance coverage for their cars and liability coverage should not consider getting this auto insurance policy.
What to Consider When Buying One-Way Car Insurance
When searching for any type of insurance policy, there are different factors to consider to ensure you get the right insurance for you. Before you purchase one-way auto insurance, consider the following factors:
Minimal Mandatory Coverage
One-way car insurance generally meets the minimal mandatory coverage for every state, making it a good option if you only need insurance to meet the state’s legal driving requirement.
No Coverage for Yourself
This insurance only offers third-party insurance coverage. Policyholders have no insurance coverage for themselves, leaving them responsible for their damage repairs.
No comprehensive coverage
Comprehensive coverage is not included under a one-way insurance policy. If ever your car gets stolen, vandalized, or damaged in any way, you will be responsible for the repairs and replacement of your car.
Risks
The only risk you will be taking is the risk of having to pay for your car’s repairs or replacements out of pocket. In this case, you can decide to get a two-way auto insurance policy to cover these.
Who Should Consider One-Way Car Insurance?
If you intend to save money or are purchasing insurance for a low-value vehicle, getting this insurance may be a good idea. Old vehicles commonly have limited one-way insurance policies. If your car will cost less to replace than to repair, you may need to get additional insurance protection. Some car owners may consider getting basic auto insurance policies if they fix or work on cars.
Should You Get One-Way Car Insurance?
It only makes sense to get this insurance policy if you are driving an old car model or if you are a safe and careful driver. If this is not the case, getting a one-way insurance policy is not a good idea. If you ever get involved in an accident and you are identified as the at-fault driver, you will have no choice but to cover your car repairs out of pocket.
New car repairs with costly parts or technological features are often too expensive for an average car owner. Even if your car doesn’t get damaged in a collision, it may be stolen, and paying for replacements may be quite difficult for you to do. In cases like this, one-way car insurance is not a good idea.