If you have a vehicle you’re not going to be using for a time, you might consider cancelling or suspending your insurance. Maybe you like to store your car for the winter. Or maybe you’re working on fixing up your car and it’s not road worthy yet. It doesn’t really matter why you’re not using your car…but in most cases you’re going to want to make sure you keep that vehicle insured. And here’s why.
1. Canceled policies create gaps in coverage.
For one, canceling your coverage creates a gap in your insurance history that may put you in a high-risk category with your insurer. That may mean you have to pay a higher premium when you decide to reinstate your policy down the road. This is especially relevant right now as many insurers are looking more closely at auto coverage across Alberta.
2. Your car won’t be protected against accidents.
Without insurance, you’ll be solely responsible for anything that happens to the vehicle during its time in storage. If something happens to damage your vehicle, you’ll likely have to pay out of pocket to repair the car.
3. Canceling coverage may violate policy requirements.
Additionally, you may not even have the option to drop your policy. For example, if you have a car payment, your lender may require you to hold insurance as a condition of your loan.
Instead of cancelling your car insurance, consider reducing your coverage instead.
If you have a car that will be kept in storage for 30 days or more, you may be able to suspend your liability and collision coverages, which are both driving-related and, instead, maintain only comprehensive coverage on the car while it is in storage.
Comprehensive coverage helps pay to repair vehicle damage from things like theft, fire or hail — scenarios that are all possible while your car is in storage.
Reducing your coverage, rather than cancelling it, may lower your premium and it will also prevent you from having a lapse in coverage that could result in higher costs in the future.
If you have a vehicle in storage and you’d like to talk more about your insurance options, we’d love to hear from you.
Are you looking for more personal, comprehensive insurance options for your collections of vehicles, wine, jewelry or art? Contact our Team 1912 for a personal insurance audit.