Parked Car Insurance: Do You Actually Need It?

Do you have a passion for classic or luxury cars? We can’t blame you; there’s something truly special about revving the engine of your dream ride before pulling out of your driveway.

However, not all drivers like to use their luxury or classic cars throughout the year. Most drivers prefer to store their seasonal vehicles indoors; however, some opt for storing them outside during the winter months.

If you’re the type of driver that’s constantly trying to save money, then you may have thought about temporarily cancelling your car insurance while it’s not in use. Although this may seem like a fantastic idea at first, we urge you not to cancel your car insurance. Instead, it would be best to consider opting for parked car insurance coverage.

Continue reading to learn the ins and outs of parked car insurance Ontario.

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Insurance for parked car — what is it and why is it important?

Parked car coverage (also commonly referred to as comprehensive coverage) is a type of auto insurance that financially protects drivers from risks and perils while their vehicles are not in use.

For those that don’t know, “risks and perils” is an insurance term referring to unforeseeable and unavoidable events. Some examples of risks and perils include the following:

• Wind and general storm damage (hail, lightning, etc.)
• Fire and smoke damage 
• Water damage
• Theft and vandalism
• Riot or civil disobedience
• Damage from falling aircraft or aircraft parts

If you need clarification, here’s a simple example:

You decide to park your car in your driveway for the winter season. After a few weeks, a severe snowstorm strikes your neighbourhood, leading to several large dents in the exterior of your vehicle and noticeable windshield damage. Instead of paying for the repairs out of pocket, you can utilize your parked car coverage. Your parked car coverage will cover all or a portion of the damage.

With this being said, it’s clear why parked car coverage is so important, especially if you’re storing your car outside during the winter months.

Is parked car coverage required in Ontario?

The answer to this question depends on where you live and where you’re storing your vehicle for the winter.

In most cases, drivers don’t need to have parked car coverage, but it’s highly recommended. Although, drivers in Ontario do need liability insurance if they’re planning on storing their vehicle in a public area for an extended period.

Why do you need liability car insurance if it’s not in use? We’re glad you asked!

Drivers need to have liability insurance for their vehicle due to the fact that a parked vehicle can potentially harm a third-party (for instance, a car that’s parked on a hill slides into a nearby pedestrian). You will also need liability insurance if you plan on moving your parked vehicle at any point throughout the winter.

Additionally, drivers should note that they do have the power to temporarily pause their car coverage if they’re storing their vehicle on private property or in a private garage.

Is parked car coverage worth it for all cars?

No, there are a handful of situations where parked car coverage isn’t worth it. For instance, you do not need to get parked car insurance for the following types of vehicles:

• Cars that don’t run
• Salvaged vehicles
• A car being used for parts

However, parked car coverage is worth every penny if you value your vehicle.

Bonus tip — If you have collision insurance, then you may be able to convince your insurance provider to pause the coverage temporarily if you park the vehicle indoors. This is due to the fact that there's practically no risk of a collision.

Why should you get parked car coverage for your vehicle in Ontario?

There are numerous reasons why you should get parked car coverage for your vehicle, regardless of its make, model or age.

Peace of mind

The main reason that drivers get parked car coverage is to get peace of mind.

Your vehicle can potentially get damaged by the elements, other drivers and a number of other potential risks, even while it’s parked on the side of the road. Unless you’re content with leaving your vehicle in jeopardy, buying parked car coverage is highly beneficial.

After saving for years for your dream ride, the last thing that you want to learn is that it was damaged while it was parked. So, if you value your vehicle, parked car coverage is a safe and smart choice.

Only in Ontario for part of the year

After reaching a certain point in their lives, many Canadians decide that they want to spend their time in other parts of the world. However, they don’t want to give up the luxuries and privileges that Ontario has to offer.

In hopes of getting the best of both worlds, it’s not uncommon for some people to spend a portion of the year, generally the winter, in another country (this is often referred to as a snowbird lifestyle).

Click here to learn some of the basics of snowbirding in Florida.

Parked car coverage allows these individuals to protect their vehicles without being in the country. So, if you’re looking for a convenient way to protect your ride while you see the world, parked car coverage is the ideal choice.

How much does parked car insurance cost in Ontario?

You’re probably asking yourself, “how much is parking insurance in Ontario?” — we wish we could give you a simple answer to this question.

In most cases, your parked car coverage rate is based on your location, provider, driving history, and a handful of other personalized factors. Because of this, it’s extremely rare for two policyholders to pay the exact same amount.

Thankfully, we can give you a general idea of what the typical Canadian driver pays for parked car insurance. Generally, most low-risk drivers pay anywhere from $100 to $300 for parked car insurance. You can reach out to your insurance provider or personal advisor for specific information on pricing.

Do you want to save on parked car insurance in Ontario?

Whether you’re tired of overpaying for parked car coverage, collision coverage or anything in between, the Surex team is here to help you save. Our experienced team of insurance advisors can guide you through the policy-choosing process and make sure that you find a plan that works for you.

In a hurry? Don’t worry! Our team is speedy — our advisors can provide you with ten personalized quotes in ten minutes or less.