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If you are planning to take your vehicle off the road then you should consider parking insurance. With winter on the horizon, many people are planning to store their vehicles. Some drivers consider putting their car insurance on hold. Others even plan to cancel car insurance, which can have a negative effect on your future rates.
Your best bet is most likely insurance for your parked car. We’ll help you determine if parking is the right solution for your situation.
Parking insurance is another name for comprehensive insurance. It provides you with coverage against specific perils while your vehicle is parked and off the road. The coverage ensures you have protection if your vehicle was damaged, stolen, or vandalized while being stored. It is not mandatory. But it's highly recommended to keep some coverage on your vehicle, even when you are not driving it.
For example, let’s say you have your summer car parked in your driveway for the winter months. After a harsh snowstorm, a tree branch fell on your tree and caused a cracked windshield. If you have an active policy for the vehicle, you will likely be covered for repairs or replacement. If you have no active coverage, you would be paying for the repair process with all your own money.
It is not legally required to have parked car insurance, but it is highly recommended even if you are just parking a car in your driveway. If your vehicle has low value or if you are keeping it for parts, having active protection isn’t necessary. However, if you have a vehicle that you drive seasonally or is used within the family, you would legally need some level of coverage.
Choosing to remove coverage from your vehicle can have repercussions. You are potentially putting yourself at financial risk in several ways.
Parking insurance provides you with protection from a variety of risks that are not a result of an accident. This list includes:
It may include other perils listed in your policy – be sure to read through the documents carefully.
A parked car policy is more affordable than a typical policy. In most cases, you will remove coverage and opt for the minimum level available. How much it will cost depends on all the normal factors – location, vehicle type, how you store the vehicle, and more. Speak with your insurer to get an accurate auto insurance quote if your car is going to be parked for an extended period.
You cannot drive your vehicle with only parked car insurance. To legally drive, you must have third party liability, DCPD, and uninsured motorist protection. If you choose to drive without the right coverage in place, you face significant consequences. Driving without insurance or improper coverage can result in fines, licence suspension, and having your vehicle impounded. Keep your vehicle parked until you reactivate your policy.
Are you still on the fence about whether parking insurance is for you? There are obvious benefits to it depending on your needs and situation:
Just because your car is parked doesn't mean you don't need insurance. Speak with a ThinkInsure advisor to make sure your parked car is covered. You can also check rates and coverage options from Canada's top insurers online.
Even though you are covered for damage, you do not have protection from all threats. For example, you do not have protection for a hit and run if you cannot identify the driver.
The other potential issue you may run into is the ability to get parking insurance. If you have a car lease your lender may require you have both comprehensive and collision insurance on the vehicle. With a parked care policy, you only have comprehensive. You may need to request approval from your lender if you want to take your car off the road.
If you do plan to take your vehicle off the road, where you park it and how you store it is important. Here are some simple steps to protect your vehicle while it's parked:
No. You do not need to have auto insurance if a vehicle not parked on a public roadway. You don’t require coverage if you are not driving a vehicle and storing it. However, coverage is highly recommended - you never know what may happen.
Even if you do not drive a vehicle, it's still subject to many risks. You can choose to not get any for your vehicle if you don’t drive it. But, by not getting gap insurance, or minimum coverage, you are accepting the financial risk of having to pay for damage if it occurs.
It is not recommended to park your vehicle on the street if you do not have an active policy. All vehicles must be registered and insured to be on any roadway. Without coverage, you cannot legally move your vehicle. You also increase the risk of the vehicle being hit by another car. If this occurs, you will be on the hook for the repair costs.
No. Your home insurance will not cover your vehicle if it is damaged while on your property. It might cover personal items stolen from your vehicle while it's parked. Check your policy to know what you have coverage for.
Yes. It's advisable to have your car covered even if you store it at an offsite facility. Many vehicle storage locations will require you to have a certain level of protection.
Most assume that parking a vehicle on their driveway is safe. And it is for the most part. But you can never be too careful. All it takes is one incident and an uninsured vehicle could cost you thousands to repair. If your car is parked or if you are driving regularly it's important to have proper coverage. Speak with a ThinkInsure advisor today about getting an Ontario car insurance quote.
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| Categories | Auto |
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| Tags | Auto Coverage |
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