Do you have “one-way” or “two-way” coverage? When it comes to insuring your vehicle, the distinction between third-party liability insurance and all risk coverage is essential.

Simply put, the main difference lies in the scope of coverage. Civil liability insurance covers only damage caused to others, while comprehensive insurance also protects your vehicle.

Chapter A: Mandatory Coverage

Liability coverage is the minimum insurance required for all motor vehicles. In Quebec, the law requires owners to have at least $50,000 in liability coverage. This is Chapter A of your insurance policy.

What Your Liability Insurance Covers

Third-Party Coverage: It pays for property damage caused to others if you are at fault for an accident. It also covers damage caused by your car. For example, if you damage your neighbor’s fence or a guardrail on the highway.

And what is not covered:

Coverage for your vehicle: Damage to your own car is not covered if you are at fault or partially at fault for the accident. However, if you are not at fault for the accident in Quebec, the direct compensation agreement may apply. In this case, damage to your vehicle is covered by liability insurance.

Benefits	Disadvantages
Lower cost: The insurance premium is generally less expensive.	No compensation for your vehicle: If you are at fault or partially at fault for an accident, you will be responsible for covering the costs of repairing or replacing your car.
Ideal for low-value vehicles: This coverage may be appropriate if your car has a low market value.	Financial risk: Costs can quickly add up in the event of a major accident.

Important: Driving your vehicle without liability insurance is a violation. You may be fined, and your driver’s license may be suspended.

Chapter B: Optional Coverage

This optional insurance provides extended coverage for your vehicle. There are several options for “two-way” coverage:

Option 1: All Perils Insurance (B1)

This is the broadest car insurance plan available. It includes liability coverage and protects your vehicle against various types of accidents, including those involving a collision or upset (B2) and other incidents (B3).

It also covers other accidental damage that may occur, such as spilling a can of paint on your seats, for example. The main difference is that it covers theft of the vehicle by a member of the household, such as a child. The all perils coverage plan may come with a higher deductible than Option 2.

Option 2: Collision and Upset and All Perils Other Than Collision or Upset (B2 and B3)

This coverage combines Collision or Upset (B2) and All Perils Other Than Collision or Upset (B3). The first covers damage to your vehicle resulting from a collision for which you are at fault, a rollover, or when you are the victim of a hit-and-run. The second option also insures you against fire, theft, vandalism, glass breakage, and damage caused by severe weather or flying objects.

This combination of the two coverages offers expanded protection without being a full comprehensive policy. It also gives you the flexibility to set different deductibles for collision or upset coverage (B2) and non-collision or upset accident coverage (B3).

Option 3: All Perils Other Than Collision or Upset Only (B3)

This coverage insures your vehicle only against fire, theft, vandalism, glass breakage, and damage caused by severe weather or flying objects. It also covers collisions with animals, such as a deer. This option provides more limited coverage, as it does not cover damage to your own vehicle in the event of an accident.

Option 4: Specified Perils Only (B4)

This option allows you to combine liability insurance with specific coverage for theft, fire, etc. It generally excludes glass breakage or collisions with deer.

Good to know: Even though it’s optional, Part B insurance (Option 1—All risk or Option 2—including B2 and B3) may be required by your financial institution if you’ve taken out a loan to purchase your car.

Customized Coverage

In reality, very few people purchase All perils auto insurance (B1). Its higher cost and deductible amount are often less appealing to vehicle owners.

Most of the time, an insurance broker will recommend a policy that combines B2 and B3 coverage (option 2), meaning it covers both accidents with collision or upset and comprehensive incidents. This allows for a lower deductible for other incidents, since replacing a windshield is, of course, much less expensive than repairs following a collision.

This way, you get customized coverage that truly meets your needs.

For even more complete coverage, several endorsements can also be added to your auto insurance policy. FAQ 20 (Replacement Vehicle), FAQ 27 (Damage to Vehicles Not Owned by the Insured), FAQ 34 (Personal Accident Coverage), and FAQ 43 (Replacement Cost) are often recommended.

Which coverage should you choose?

The choice between “one-way” or “two-way” insurance depends on several factors:

Vehicle value: For new vehicles, comprehensive coverage is often recommended. For older cars or those with low market value, liability-only insurance may be sufficient.

Vehicle usage: If you drive frequently and over long distances, comprehensive auto insurance offers additional security.

Personal risk tolerance: Some people are willing to pay a higher premium for complete peace of mind, while others prefer to minimize immediate costs by accepting a greater financial risk in the event of an accident.

There are also intermediate options, where you can combine basic coverage with specific protections for theft, fire, or windshield damage, for example.

Ask your broker for advice!

An independent insurance broker is a valuable ally when it comes time to shop for auto insurance. At Assurances Multi-Risques, our team can provide sound advice to ensure you have adequate coverage for yourself and your vehicle.

Summary

Liability auto insurance is mandatory in Quebec. It protects you against damages caused to others.

Comprehensive auto insurance is optional. In addition to liability coverage, it offers additional protection that covers damage to your vehicle.

The choice of your auto insurance policy depends primarily on the value of your vehicle and how you use it. Your budget and your risk tolerance are also factors to consider.

There are also intermediate coverage options that allow you to combine liability insurance with coverage for specific risks.