Insurance for a parked/stored vehicle: What is "parked" insurance?

Have you heard of "parked" car insurance? In all Canadian provinces, car insurance is mandatory. Now, it may work differently from province to province, but the point remains the same: you must have some liability insurance to drive a vehicle on public roads. But what happens if that vehicle isn't working at all? What if, for example, it's a vehicle that's currently being driven?

There are many different reasons why a driver might want to store their vehicle. The list is as follows:

• The vehicle you usually use is no longer working, but it has retained value.
• You currently have a medical condition that prevents you from driving.
• You are storing one or more vehicles in your garage for restoration or DIY purposes as part of an ongoing project.
• You leave the country for pleasure or for work for months or years.
• You drive one vehicle in the summer and another in the winter.
• You are an elderly person and choose not to drive for months when the weather is more difficult.

Obviously, the list varies depending on your situation, but the question is whether parked cars need to be insured. How do you insure a parked car? In this blog post, Panda7 describes "parked car insurance."

What is car parking insurance in Quebec?

Parking insurance or parking car insurance is not really an insurance product that can be purchased separately or in addition to pre-existing car insurance, but it is a term used to refer to insurance coverage tailored to defend a vehicle in a warehouse or parked on private property.

Parked vehicles do not require insurance. They are considered private property at present, as they are not used on public roads. However, it is always recommended to take out some form of insurance for parked cars, ideally comprehensive coverage, as damage and losses can still occur for vehicles that are not used daily. Parked or stored vehicles are more attractive to thieves, are left unprotected, and are more easily exposed to the elements, falling objects, and other hazards.

Parking car insurance essentially covers your parked vehicle against the hazards a vehicle not used on public roads might face, and removes coverage you don't need. This typically involves removing liability and collision coverage, while maintaining comprehensive protection.

Do I need to keep full coverage on my vehicle?

In any case where a driver might want to store their vehicle, you can call your insurer to discuss removing what are called "driving coverages" or "roadside coverages." Then, choose to keep your full vehicle coverage on the car while it is parked or stored. Full coverage is an optional but essential coverage option that provides protection against some of the most common losses that can occur to a vehicle while it is not in motion. In Quebec, full coverage can be purchased from a private insurer and offers protection against:

• Damage caused by fire, whether it originates from an external source (such as the building or area where the vehicle is parked) or from the vehicle itself.
• Theft, or even attempted theft, if someone breaks into your vehicle and causes damage. However, the contents of your vehicle can only be covered by a tenant's or homeowner's insurance policy.
• Falling objects, if a rock or even a baseball pitch hits your car.
• Damage caused by the storm, whether it be lightning, storm, hail, etc.
• Civil unrest and/or riots – although not a frequent occurrence, and some insurers may not cover these events.

If you choose to remove the mandatory roadside insurance coverage that allows vehicles to circulate "legally" in Quebec, you should understand what remains afterwards and note that if you want to drive this vehicle again, you will have to repurchase the mandatory Quebec insurance coverage.

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

No, car insurance is only mandatory for vehicles driven on public roads. For cars that are stored or parked, purchasing or maintaining comprehensive coverage is only recommended, but there are many compelling reasons why a parked car should be insured. First, insurance is a way to protect your investment. Comprehensive insurance covers common risks. Garages can catch 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 options in Quebec. It gives you peace of mind knowing your vehicle in storage is covered should anything unexpected happen.

By removing all insurance from your vehicle, you could create a gap in your insurance history, which could negatively impact your record and affect your future premiums. Technically, a gap of a few months shouldn't be a problem, but a period of several years without insurance can lead insurers to consider you a less experienced driver, reducing your driving record and increasing your rates.

In conclusion, if you plan to leave your vehicle parked or stored for several months or years, consult your broker. We can help you decide which coverages to remove and which to keep to save money while maintaining your peace of mind. Call us today to discuss it.