Can You Pause Your Car Insurance?
If you’re not driving your car for a while—maybe you’re taking a long vacation or switching to public transport—you might wonder if you can pause your car insurance to save some cash. The good news? Yes, you can! But before you hit pause, there are some things you should know.
How Pausing Your Insurance Works
In Canada, many insurance companies let you temporarily suspend your car insurance. This usually involves filling out a form, like OPCF 16 in Ontario, which stops your driving-related coverage. But you still get protection from non-driving risks like theft or vandalism. Once you’re ready to get back on the road, you just need to fill out another form (OPCF 17) to reinstate it.
Why Pause Instead of Cancel?
Pausing your insurance is smarter than canceling it outright. Canceling may leave gaps in your insurance history, which can make it harder to get good rates in the future. Plus, you’d lose protection from off-road risks, like a tree falling on your parked car. Also, cancelling may involve fees, and when you restart, it could mean higher premiums or needing to shop for a new policy.
What Happens to Your Coverage?
When you pause your car insurance, you lose key coverages like third-party liability, accident benefits, and uninsured motorist protection. That means you can’t legally drive until the policy is reinstated. If your car is off the road, these may not seem necessary, but make sure your vehicle is stored safely since you’ll still need protection from damage, theft, or vandalism.
Are There Any Drawbacks?
While pausing can save you money, it’s important to know there might be a fee. Also, your car must stay parked while your insurance is on hold, so you can’t drive even for a quick errand. If you get caught driving without insurance, there are serious penalties, including fines or even a license suspension.
Pros of Pausing Insurance
Save money: If you won’t be using your car, pausing coverage can help you avoid unnecessary costs.
Avoid cancellation gaps: Cancelling a policy can result in higher premiums later. Pausing keeps your policy active for non-driving risks.
Cons of Pausing Insurance
Fees: Some providers charge fees to pause insurance, so check with your insurer.
No driving allowed: You’ll need to reinstate your coverage before you can legally drive again.
Off-road protection: If your car is stored outdoors, risks like falling branches may not be covered unless you maintain comprehensive insurance.
How Do You Pause Your Insurance?
To pause your insurance, get in touch with your insurance provider. They’ll walk you through the steps, which typically involve filling out a form and paying any applicable fees. When you’re ready to drive again, just contact them to remove the pause and reinstate your coverage.
Final Thoughts
Pausing your car insurance can be a good way to save some money if you’re not using your vehicle for an extended period. Just be sure to weigh the pros and cons and make sure your car is still protected from non-driving risks.
Have questions? Contact us at Verdant Insurance, and we’ll help you figure out if pausing your insurance is the right move for you.
