Insuring a parked/stored vehicle: what is “parked” insurance?

Have you heard of “parked” vehicle insurance? In every province in Canada, auto insurance is mandatory. Now, it may work differently for different provinces, but the point remains the same: you must carry some level of liability coverage to operate a vehicle on public roadways. But what if this vehicle isn’t operating at all? What if, say, this is a vehicle that is currently being driven?

There are numerous different reasons why a driver might want to put their vehicle in storage. The list is as follows:

• The vehicle that you ordinarily use is no longer operating, but it has retained value.
• You are currently experiencing a medical issue which prevents you from driving.
• You are storing a vehicle or multiple vehicles in your garage for restoration or for tinkering as part of an ongoing project.
• You are leaving the country for pleasure or for work for months or years.
• You have one vehicle you drive in the summer and one you drive in the winter.
• You are a senior and opt not to drive in months when the weather is more difficult.

Obviously, the list varies depending on your situation, but the question is – do parked cars need to be insured? How do you insure a parked car? In this blog, Panda7 details “parked car insurance.”

What is parked car insurance in Quebec?

Parked insurance or parked car insurance isn’t really an insurance product that can be purchased separately or in addition to a pre-existing auto insurance package, but it’s a term used to refer to insurance coverage tailored to defending a vehicle in storage or parked on private property.

Parked vehicles do not require insurance. They’re sort of like private property at this point, as they aren’t being used on public roadways. It is still recommended that you carry some form of insurance for parked cars – i.e., in the form of comprehensive insurance, as damages and losses can still occur to vehicles that aren’t being used day-to-day. Parked/stored vehicles are more appealing to thieves, are left unprotected, and can be easier exposed to the elements, falling objects, etc.

Parked car insurance is basically insuring your parked vehicle for the perils that a vehicle not being used out on public roads might face, and removing coverage you don’t need. Usually, that entails removing the third-party liability and collision coverage, while maintaining comprehensive coverage.

Do I need to keep the comprehensive coverage on my vehicle?

In all scenarios where a driver may want to put their vehicle in storage, you may call up your insurance provider to discuss removing what is known as “driving coverages” or “road coverages,” and elect only to keep your vehicle’s comprehensive coverage on the car while it is being parked or stored. Comprehensive coverage is an optional but imperative coverage option which offers protection against some of the most common losses that can happen to a vehicle while it is not in motion. In Quebec, comprehensive coverage may be purchased through a private insurer and can offer protection against:

• Fire damage, whether that is originating from an exterior source (like the building or the area where the vehicle is being parked) or from the vehicle itself.
• Theft or even attempted theft, if someone breaks into your vehicle and causes damages. The property contained within your vehicle, however, may only be covered by a renter’s or home insurance policy.
• Falling objects, if a rock or even a thrown baseball hits your car.
• Storm damage, whether that’s lightning, windstorm, hail, etc.
• Civil disturbance and/or riots – although this is not a frequent occurrence, and some insurance providers may not provide coverage for these vents.

If you are choosing to remove the mandatory road coverages that keep vehicles “street-legal” in Quebec, you should understand what is left afterwards and note that if you ever want to drive this vehicle again, you’ll need to re-purchase Quebec’s mandatory coverages.

Is auto insurance mandatory for vehicles that are stored or parked?

No, auto insurance is only mandatory for vehicles that are being driven on public roadways. For stored and parked cars, purchasing or maintaining comprehensive coverage is only recommended, but there are a lot of compelling reasons why a parked car should be insured. For one, insurance is a means to protect your investment. Comprehensive insurance covers common perils. Garages can catch on fire, stored or parked cars can be stolen or vandalized, parked cars can be hit by garage doors or struck by loose hockey pucks and baseballs…the list goes on.

Comprehensive coverage is one of the least expensive insurance coverages to purchase in Quebec. It gives you peace of mind that your vehicle in storage is covered if anything unexpected happens.

By removing all insurance on your vehicle, you may suffer a “gap” in your insurance history, which can blackmark your record and impact your future premiums. A gap of a few months technically shouldn’t be an issue, but a period of a few years without insurance may result in insurance providers viewing you as a less experienced driver, which cuts away at years of your driving history and spikes your rates.

Bottom line? If you’re planning to leave your vehicle parked or stored for several months or years, consult with your broker. We can help you decide on what coverages to remove and what to keep to save you costs while also preserving your peace of mind. Give us a call today to discuss.