Blog Can You Pause Or Put Your Car Insurance On Hold?

Apr 25, 2023

What you need to know about putting your auto insurance on hold with OPCF 16/17

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Has there been a change in your driving habits? Are you considering putting your insurance on hold to save money? More people are working from home and have had a change in their commute.

Putting your car insurance in Ontario on hold is possible if you do it the right way. If you cancel outright, it can cost you more money than you save when you need to get insured in the future. Plus, you may need to pay terminations fees, and gaps are also potential red flags for insurers.

Although you are not driving your vehicle as much, you still need to have insurance. This is even if you take it off the road. You’ll want to protect it from theft, vandalism, and weather damage. Here’s what you need to know if you are considering suspending your policy.

Here’s what you need to know if you are considering suspending your policy and how OPCF 16 and OPCF 17 can help.

Can I put my car insurance on hold?

It is possible to put your insurance on hold. But, there is a specific way you need to go about the process of suspending it. You’ll need two Ontario Policy Change Forms to complete the process OPCF 16 (to suspend your insurance) and OPCF 17 (to reinstate it.).

People may seek to suspend their travel policy, change their driving habits, or remove a vehicle they no longer use. Remember that when you use this form, you will remove four key coverage components, including DCPD, SABS/accident benefits, uninsured motorist, and liability.

It is possible to put your car insurance on hold. But, there is a specific way you need to go about the process of suspending it. You’ll need two OPCFs to complete the process :

OPCF 16: Pausing or suspending your coverage

OPCF 16, also known as Suspension of Coverage, cancels your car insurance until it is reinstated, which is when you need OPCF 17, or reinstatement of coverage.

OPCF 17: Reinstating insurance

When the time comes to reinstate your policy, you will need OPCF 17. This form will officially reinstate your coverage.

Pausing your insurance is as easy as calling our experts

Do you need to pause your auto insurance? ThinkInsure brokers can help you with any questions and guide you along the process.

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When can insurance be put on hold?

There are a few reasons why people might want to put their insurance on hold. Right now, COVID-19 is the top reason, but there are others. Perhaps you are storing your summer car, are travelling, or want to remove a less used vehicle from your Toronto car insurance. You can call your insurer anytime to discuss changes or reduce coverage. Basic insurance is better than having none or fully cancelling.

What happens if I pause my car insurance?

There are some things to consider when you contact your insurer to discuss pausing your insurance. By suspending it, you are giving up important protection. Depending on your insurer, fees may also apply, which may be more expensive in the long run.

Here is an overview of some of the pros and cons of pausing your policy.

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Pros and cons of suspending insurance

There are some things to consider if you are thinking about suspending your insurance. Here is a look at the pros and cons of suspending it.

  • You pay less premiums while your car is not being used.
  • You won’t have a lapse if you pause and keep basic coverage.
  • The vehicle will be insured if anyone wants to drive it.
  • No protection against non-driving incidents such as theft, vandalism, or fire.
  • Fees could apply.
  • Your premiums could increase.
  • Some insurers view this as a cancellation. You could have trouble getting insured in the future because of the gap.

Instead of pausing, you could lower your limits or shop around and speak with one of our experts to help you save while still insured. Lowering your coverage to “parked car” or comprehensive-only may make the most sense for you. If you remove comprehensive insurance, your vehicle will not be protected from fire, theft, or vandalism even though it is parked in your driveway.

FAQs on pausing your insurance

You cannot put it on hold, but you can suspend it. Contact your insurer to confirm your options. You can also remove optional coverage, which is usually the best option. Even if you are not driving your vehicle, you want protection from non-driving perils.

Even if you are not driving your car, having insurance for your vehicle is a good idea. If you cancel your insurance, it could affect your premiums. Your vehicle also won’t be covered against damage that happens while the car is parked.

No, you will not get your money back if you suspend your insurance.

Even if your vehicle is on the mend, you should have an active policy, no matter what the circumstances are. Contact your insurer to find out how you can reduce costs.

Speak to your advisor before you pause your insurance with OPCF 16

Unless you are ready to take your car off the road entirely, your best option to save money is to reduce the coverage. Contact us to compare car insurance quotes and to learn more. Otherwise, consider putting your insurance on hold with OPCF 16/17.