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Insuring your summer vehicle during the winter

January 12, 2011

Now that winter is here, you’ve likely stored your summer vehicle to protect it from the harsh and snowy weather. And after the busy holiday shopping season, you may be looking for ways to reduce expenses during the coming year.  Car insurance is one area that comes to mind, and you may be wondering if you can cancel your insurance while your vehicle is off the road. Consider the following points first, before deciding to cancel your insurance.

Premium increase

If you cancel your auto insurance policy, you will not be covered if your car is stolen. Also, when spring arrives and you’re ready to put your vehicle back on the road, you may see a change in your rate. For example, if you had an at-fault accident and your insurance company chose to forgive that claim, the accident could remain on your record when you set up a new policy, and your premiums could increase.

Driving without insurance

Are you aware of the consequences of driving without insurance? In Ontario you could face a fine of $1000 to $5000 for a first offence, and $2000 to $5000 for a second offence, plus jail time of up to six months. In addition, if you wish to purchase a policy in the future, you could be denied coverage if the insurance company discovers you’ve been driving while uninsured, as you are deemed to be a greater risk.

Comprehensive coverage

Liability insurance is required by law for cars that are being used on the road, this portion cannot be cancelled.  However, when your car is in storage, rather than cancel your policy all together, you can remove the collision coverage portion to reduce costs as you won’t be driving it.  It is a good idea to keep the comprehensive coverage. This will protect the vehicle should it be stolen, damaged by fire or vandalism, or hit by an unidentified third party while it is parked. Call your insurance professional to discuss the level of coverage you need.

Classic car status

Depending on the age of your vehicle, it could qualify for classic status in which case you may receive lower insurance rates. This is based on the fact that these vehicles are not driven as often and generally only in good weather, and are treated with the utmost care and attention by their owners. If damaged however, these cars can be much more expensive to repair. Cars that are considered classic or antique are subject to different rules for valuation, insurance rates, terms and conditions. Speak with an insurance professional about your particular situation.

The best way to reduce your insurance costs is to shop around for a better rate. At InsuranceHotline.com you can easily compare insurance premiums online, with quotes from top insurance companies across Canada.