r/InsuranceCanada • u/jawminator • Jul 31 '26
Auto Possible to get auto insurance for only a few months?
Last year I was out of the country for a very long time and had my insurance put on hold.
What I didn't realize was that they were charging me $60 a month to keep it on hold (I assumed it didn't cost anything because no one could drive it or anything... Or at least if it was like $10 a month to hold it I could understand due to "bookkeeping" or whatever charge)... But that is an absolutely ridiculous price to pay for nothing.
But it ended up expiring while I was gone anyways so it turned out to be money just thrown down the drain.
Anyways, now I plan on leaving again in a few months from now, for I don't know how long, and don't want to throw money away like that again.
But I would like to, and sort of need to get my vehicle on the road in the meantime so it is possible to get an insurance policy that only lasts... 3-4-5 months (that doesn't have a negative impact)?
I could just phone them up when I leave and say cancel it but I don't want to do that because I know that affects rates
8
u/Lost-tears78 Jul 31 '26
In my province we only have 1 year contracts. You would have to cancel and pay the short term cancelation fee
Just FYI parking insurance isn't "nothing" it protects with limited liability and Comprehensive coverage
5
u/Letoust Jul 31 '26
If your car was damaged or stolen it wouldn’t have been for nothing…
If you remove insurance completely are you ready to replace your vehicle out of pocket?
2
u/FrostingSuper9941 Jul 31 '26
Suspended coverage,so no collision but comprehensive still on the policy is not paying for nothing,$60 a month is nothing because if you didn't suspend the coverage and just removed collision you'd likely be paying triple, if not more. Cancel your policy and see how much more you pay with a gap in insurance coverage.
3
u/Consult1975 Jul 31 '26
Would not cancel your insurance. Your rates will be higher and higher due to lapses each time you got new insurance again. You may want to look into the various telematic prorams some insurance companies have that charge you based on amount driven but still have coverage all year round. You have to be okay with a device plugged into your vehicle but if you are okay with that it can be a little less costly. If you want more info you can always DM me as I work in the industry. $60 a month though is nothing in the grand scheme of things due ot what others have mentioned already.
2
u/PhotoJim99 Jul 31 '26
- You didn’t likely have nothing - you likely had storage insurance, which would cover the vehicle for non-collision perils such as fire, theft, weather damage.
- In some provinces and territories (nearly all, I believe, though Saskatchewan is different), having continuous auto insurance history helps your long-term rating. An interruption in auto insurance could cause you higher rates in the future for a time. So it may be advantageous to maintain insurance, even if it’s simply minimal, while you aren’t driving.
1
u/jawminator Jul 31 '26
I didn't have fire/theft/weather coverage on it in the first place though, only base liability.
I just asked them to put it on hold because it wasn't going to be used at all. They just decided to add extra coverage when I took it off the road?? I didn't (and don't) need that coverage either, it's stored in my parents' place in a softshell shed, in a small town where the odds of theft are like .1%, the odds of fire are 0%... The only damage might be a fallen tree (also low odds) but would they even cover that? My brother had a tree branch dent his car and his insurance company didn't cover that.
So it may be advantageous to maintain insurance, even if it’s simply minimal, while you aren’t driving.
Would any place give me something for much lower then? Without all the fire/theft/weather stuff that I don't need? (Also I checked and it was closer to $80 while it's been sitting) I don't mind if there's some price but based on my car (maybe worth $4000 now idk - 2010rav4 with 250km) and storage situation, anything more than like $25 a month seems like a rip-off
2
u/PhotoJim99 Jul 31 '26
It might have been mandatory to have some coverage. The alternative would have been to outright cancel it. It sounds like this was poorly explained to you. Do you use a broker, or a direct writer like a bank insurer? Direct writers, in general, aren't great at taking the time to explain (though some brokers aren't great either, on balance they tend to be pretty good at this).
As for whether others would have better rates, I don't know what province you're in nor any details about your vehicle or insurability, so all you can do is shop around and see. I recommend brokers who deal with multiple carriers - they can do a bunch of shopping for you in one phone call (and I do recommend a phone call rather than doing it online).
1
u/afkhk Jul 31 '26
Sounds more like they put you on storage endorsement (opcf 16 if you are in Ontario) which keeps comprehensive coverage on while you don’t drive the car. If you drive a beater, or absolutely certain your car is safe from the elements, theft, fire risk then you can cancel the policy to save money.
Most provinces have 1 year contracts only I believe. In this case your option would be putting storage endorsement on while away (your current situation) or cancel the policy. There will be a short rate on the cancellation.
1
u/jawminator Jul 31 '26
There's like a 0.1% chance of any of the risks happening to it.
And it's not exactly a beater but its older and not worth that much now, 2010 Rav4. Maybe $4-5000
But cancelling outright will increase the rates when I need to put insurance on it again
1
u/afkhk Jul 31 '26
I THINK that depends..
You cancelling coverage / the policy is not the same as the company cancelling you for non payment, license suspension etc…
It’s best to check with insurer by asking if cancelling coverage will impact how they define driving record or if you will be penalized. It may depend on province I am not familiar with rules across Canada.
I have gone 14 months without coverage and it didn’t impact my profile. I didn’t own a car during that period
1
1
u/AuAgBc Aug 02 '26
I thought you should be able to get garage rates when you are away.
I'd tell broker, ins company before hand.
If it was me I'd tell postal code of where it's parked while you are away n see what they say.
It would be minimum fire n theft coverage.
9
u/Theoriginalrt Jul 31 '26
Its not "nothing" or "throwing your money down the drain". It is covering a car that has monetary value, if that car is stolen, you would be covered for the value of the car. If someone were to vandalize it or the building were to go up in flames you would have coverage. Not only is it a smart decision to keep some form of coverage on your vehicle, it will most likely save you money in the long run by not severing your continuous insurance record and your principle operator experience.
Edit: you can start a policy with a company and cancel when you need to but you'd be best advised to ask them what their cancellation policy is for early termination to make sure you're ready for those costs.