Blog Can You Pause Your Car Insurance And Put In On Hold?

Sep 9, 2020

What You Need To Know About Putting Your Auto Insurance On Hold

Coronavirus has caused many people to consider suspending or pausing auto insurance. More people are working from home and have had a change in their commute. Has there been a change in your driving habits? Are you considering putting your car insurance on hold to save money?

Putting your coverage on hold is possible if you do it the right way. If you cancel your insurance policy outright, it can end up costing you more money than you save when you seek coverage in the future. Plus, you may need to pay terminations fees and insurance 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 have some coverage to protect it from theft, vandalism, and weather damage. Here’s what you need to know if you are considering suspending your auto policy.

Can I Pause Car Insurance And Put It On Hold?

pause car insurance

Yes, 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 coverage. You’ll need two Ontario Policy Change Forms to complete the process :

  • OPCF 16 : This is to suspend your coverage. It will be on hold until you reinstate it.
  • OPCF 17 : This allows you to reinstate your policy

When Can Insurance Be Put On Hold?

There are a few reasons why people might want to put their insurance policy 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 family policy. You can call your insurer any time to discuss changes to your policy. You also have the option to reduce coverage. Basic insurance is better than no coverage or cancelling.

What Happens If I Pause My Car Insurance?

There are some things to consider when you contact your insurer to discuss pausing your policy. By suspending your policy, you are giving up important coverage like third party liability, accident benefits, DCPD and uninsured automobile coverage. Depending on your insurer, fees may also apply.

It’s still important to have coverage on parked cars. If you remove comprehensive coverage your vehicle will not be protected from fire, theft, or vandalism even though it is parked in your driveway.

Pros And Cons Of Suspending Car 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 your policy.

Pros
  • You pay less for insurance while your car is not being used.
  • You won’t have a coverage lapse if you pause and keep basic coverage.
Cons
  • The vehicle will not have coverage 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 coverage cancellation. You could have issues getting a policy in the future because of the gap in coverage.

Instead of pausing coverage, you could lower your coverage limits or shop around to compare quotes. That will help you save and while still being insured.


FAQs On Pausing Your Car Insurance

Here are some helpful FAQs if you are thinking about suspending or pausing your coverage.

Under Ontario car insurance, you cannot put coverage on hold, but you can suspend it. Contact your insurer to confirm your options. You can also modify your policy and 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, it's a good idea to have coverage on your vehicle. If you cancel your insurance, it could affect your policy premiums. Your vehicle also won’t be covered against damage that happen while the car is parked.

You will not get your money back if you suspend your insurance. You may get a credit that is put toward future coverage.

Even if your car is broken down or in need of repairs, you should not suspend the coverage on it. 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 Insurance Advisor Before You Pause Coverage

Unless you are ready to take your car off the road entirely, your best option to save money on insurance is to reduce the coverage on your policy. Contact your insurer to learn more.

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