In Ontario, car insurance policies are typically issued for a minimum term of six months. During this time, you are required to maintain continuous insurance coverage on your vehicle. However, some insurance providers may offer policyholders the option to suspend their coverage for a period of time, which is commonly known as a “storage policy.”
A storage policy allows you to temporarily suspend your insurance coverage while your vehicle is not in use, such as when you are going on an extended vacation or storing your car during the winter months. However, it is important to note that you are not allowed to drive the vehicle during the storage period, as it is not covered by insurance.
To qualify for a storage policy, you must meet certain conditions, such as having a clean driving record and ensuring that your vehicle is stored in a secure location. You may also be required to remove your license plates and register your vehicle as “off-road” during the storage period.
It is important to discuss your specific needs with your insurance provider to determine if a storage policy is right for you and to ensure that you are complying with all legal requirements regarding car insurance in Ontario.
What Happens When You Suspend Your Car Insurance
When you suspend your car insurance, you are essentially putting your policy on hold for a specified period of time. This means that you will not be covered by your insurance policy during the suspension period, and you will not be able to drive your vehicle legally during that time.
If you are considering suspending your car insurance, it is important to understand the potential consequences of doing so. Some of the key things to consider include:
- Legal consequences: In Ontario, all drivers are required by law to carry a minimum amount of car insurance coverage. If you do not maintain continuous insurance coverage on your vehicle, you could face legal consequences, such as fines or even having your driver’s license suspended.
- Financial consequences: If you are involved in an accident while your insurance policy is suspended, you will not be covered by your insurance and may be held personally liable for any damages or injuries that result. This could be financially devastating and could result in significant expenses, such as medical bills and legal fees.
- Impact on insurance rates: When you suspend your car insurance, your insurance provider may view it as a lapse in coverage, which could result in higher insurance rates when you reinstate your policy.
- Impact on your credit score: A lapse in insurance coverage could also have a negative impact on your credit score, which could make it more difficult to obtain insurance in the future.
It is important to discuss your specific situation with your insurance provider to determine if suspending your car insurance is the right decision for you. They can provide guidance on the potential consequences and help you explore alternative options, such as reducing your coverage or increasing your deductible, to make your insurance more affordable.
Do You Need Insurance On A Car That Is Not Being Driven
In Ontario, if you own a car that is not being driven, you are not required by law to have insurance coverage on the vehicle. However, there are some situations where it may still be a good idea to maintain insurance coverage on a car that is not being driven.
If you plan to store your car for an extended period of time, such as during the winter months, you may want to consider purchasing a “storage policy” to protect your vehicle while it is not in use. This type of policy provides coverage for events such as theft, vandalism, and damage caused by weather or other environmental factors. It is also a good idea to maintain liability coverage on the vehicle in case someone is injured on or around the vehicle while it is in storage.
Additionally, if you plan to sell the vehicle or transfer ownership to someone else, you may need to maintain insurance coverage until the transfer is complete. This can help protect you in case of any issues that arise during the transfer process.
It is important to note that even if you are not required by law to maintain insurance coverage on a car that is not being driven, it is still your responsibility to ensure that the vehicle is stored safely and does not pose a risk to others. This may include taking measures such as removing the battery or storing the vehicle in a secure location.
Ultimately, whether or not you need insurance on a car that is not being driven will depend on your specific situation and needs. It is always a good idea to speak with your insurance provider to discuss your options and determine the appropriate level of coverage for your situation.
Suspending Auto Insurance During Vacation
If you are planning to go on vacation and will not be driving your vehicle for an extended period of time, you may be able to suspend your auto insurance coverage during that time. This can help you save money on your insurance premiums while you are away.
To suspend your auto insurance during your vacation, you will need to contact your insurance provider and inform them of your plans. Your insurance provider will likely require you to provide the dates of your vacation and confirm that you will not be driving your vehicle during that time. They may also require you to sign a document confirming that you understand the terms and conditions of the suspension.
It is important to note that while your auto insurance coverage is suspended, you will not be covered for any damages or injuries that occur while driving your vehicle. This means that if someone else drives your vehicle and causes an accident, you will not be covered by your insurance.
It is also important to keep in mind that if you have a car loan or lease, your lender or leasing company may require you to maintain insurance coverage on the vehicle at all times. In this case, you may not be able to suspend your insurance during your vacation.
If you are considering suspending your auto insurance during your vacation, it is important to speak with your insurance provider to understand the potential consequences and make sure that you are complying with all legal requirements regarding auto insurance in your province or territory.
About the Author: Robert Davis
