What does storage insurance cover on a vehicle in Canada?

Whether you tuck your car away for the winter or stow it during an extended trip, storage insurance is your ticket to peace of mind. It’s a trimmed-down auto insurance policy that keeps essential protections, like comprehensive and minimum liability, while you’re not driving, shielding your parked vehicle from threats like theft, fire, vandalism, hail, and falling objects.

In Canada, this type of coverage matters now more than ever. According to the Équité Association, while auto theft dropped by a significant 23.3% in Q1 2025 (around 11,580 vehicles were stolen, down from about 15,100 in Q1 2024), only 58.3% of those stolen vehicles have been recovered, compared to 63.1% a year earlier. That means 41.7% remain lost. Add that to increasing extreme weather damage like severe hailstorms, floods, and wildfires, and comprehensive coverage should almost be considered mandatory.

Car storage insurance offers reliable protection for these types of events and more, even when your vehicle isn’t on the road. So whether you’re hunkering down for winter or escaping for the season, storage insurance strikes the perfect balance: lowering premiums with essential protection, so your vehicle stays safe, and your wallet stays happy.

What is vehicle storage insurance coverage?

Storage insurance keeps your vehicle protected when you’re not driving it, but without all the extra and expensive coverages you need when you’re on the road. Unlike standard auto insurance, which includes mandatory liability insurance, storage insurance typically focuses on comprehensive-only coverage. This means it protects your vehicle from non-collision-related risks, or all the hazards that can happen while your car is parked or tucked away.

For instance, according to the Insurance Bureau of Canada (IBC), comprehensive insurance claims due to extreme weather events have surged in recent years. Take the Calgary hailstorm in 2024, for example. More than half of the submitted claims were auto insurance claims, which cost around $1 billion in insured damage.

People often turn to storage insurance when they won’t be using their vehicle for an extended period. In Canada, this is especially popular with snowbirds who escape to warmer climates in the winter and leave their cars behind, or with classic car enthusiasts who only bring out their prized vehicles for summer shows. It’s also common for those storing RVs, motorcycles, or sports cars during our long Canadian winters. Storage insurance helps you save on premiums since you’re not paying for protections you don’t need while your vehicle sits idle. At the same time, it ensures you’re covered against unexpected events.

Who should consider getting storage insurance in Canada?

If any of the following scenarios sound familiar, storage insurance might be just what you need to help you protect your investment while also saving on premiums while your vehicle sits idle:

Seasonal drivers and snowbirds

Do you often head south for several months during the winter? Or do you spend the summer months travelling around North America in your RV, and for the rest of the year, it sits in your driveway? If so, switching to a storage insurance policy can help you significantly reduce your premium, without leaving you exposed to common risks like theft or fire damage.

Classic and collector car owners

Do you love the look of a 1960s Mustang or own a limited-edition Porsche that only hits the road on sunny weekends? If so, you’re in luck. Classic car insurance in Canada often includes some form of storage insurance as it generally demands a secure, off-road storage setup and mileage limits, and it typically comes with agreed-value payouts. That means your vehicle is covered for its full worth, not just its depreciated “book” value.

Military deployment or extended leave

Will you be serving abroad or heading on deployment? If so, that's a good chance your vehicle’s going unused for months. In that case, storage insurance can be a smart call. It will help keep your car covered from risks like theft, fire, or weather damage while you’re deployed and it's not being used.

Students studying or working abroad

Will you be spending a semester or taking a co-op placement abroad, like in Europe, Australia, or Japan? If so, you likely won't want to pay for full car insurance coverage for a car you’re not using for a while. Dropping down to storage insurance can help lower your premiums while ensuring your car still has coverage for everyday non-collision-related risks.

Storage unit insurance in Canada—what’s included?

When your vehicle is off the road, either tucked away in a storage unit or parked in your garage for the winter, storage insurance becomes your best defence against unexpected trouble. But what exactly does it cover? Let's take a look:

Covered risks

Generally, most storage insurance policies focus on non-collision risks, meaning they protect your vehicle from almost everything that can go wrong when it’s sitting still. Covered risks typically include:

• Vandalism (key scratches, smashed windows, etc.)

• Fire and explosions

• Theft (including the entire car being stolen or parts like catalytic converters and wheels)

• Weather damage (hail, wind, flooding, ice storms)

• Falling objects (tree branches, roof debris)

• Animal damage (think mice nesting under your hood or squirrels chewing wires)

However, depending on where in Canada you live, you may still be required to continue carrying liability on your car insurance policy, which protects you if you cause an accident that injures another person or damages their property.

Differences by province

Storage insurance can work differently depending on where you live in Canada. In some provinces, it's also referred to as lay-up coverage or parked car insurance. Here are some examples:

Contact your provider or broker to learn more about your options for storage insurance in your province or territory.

Mandatory vs optional coverages in Canada explained

When it comes to car insurance in Canada, some protections are legally required no matter what, though several can be adjusted or even paused depending on your situation. Here's an overview of the most common types of mandatory and optional coverages:

Third-party liability coverage

Third-party liability car insurance is a must-have across Canada and protects you if you cause damage or injuries to others in an accident. Most provinces require drivers to have at least $200,000 in liability coverage at all times if the car is being driven on the road.

Accident benefits coverage

Accident benefits coverage is required in almost all provinces and territories. This coverage helps pay for medical expenses, rehabilitation, funeral costs, and lost income if you or your passengers are injured in a crash, regardless of who was at fault.

Direct compensation-property damage (DCPD) coverage

In no-fault provinces like Ontario, Alberta, and Atlantic Canada, DCPD covers damage to your vehicle when another driver is at fault. It allows you to claim directly through your own insurance company, simplifying the process. It is mandatory in all no-fault provinces except for Ontario.

Uninsured automobile coverage

Mandatory coverage in many provinces, uninsured automobile coverage protects you if you’re hit by an underinsured or uninsured driver or involved in a hit-and-run.

Collision coverage

Collision car coverage is an optional type of coverage that covers damage to your own vehicle. While it's not legally required in Canada, many Canadian drivers choose to include it in their policies, and it may be required by your lender if you lease or finance your vehicle.

Comprehensive coverage

Although technically optional, comprehensive coverage is essential for vehicles, whether they're parked on the street, in a driveway, or in storage. It covers non-collision-related damage such as theft, vandalism, fire, hail, and falling objects. It even covers animal damage, like if your car's wires have been chewed through by a mouse or squirrel, or even if you hit a deer.

To learn more about the various types of mandatory and optional car insurance coverages in Canada, contact a BrokerLink advisor.

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Common misconceptions and limitations of storage insurance in Canada

Storage insurance can be a great way to protect your vehicle when it’s off the road, but it’s easy to misunderstand what it actually covers and doesn’t cover. Let’s clear up a few common myths before you put your car in storage:

Your car is not covered by home insurance

Your home insurance does not cover your car, even if it’s parked safely inside your locked garage. Many people assume their homeowners or tenant insurance policy will step in if there’s a fire or theft, but vehicles are specifically excluded and need to carry separate auto insurance coverage.

Your car insurance does not cover theft of personal items

Storage insurance does not cover personal belongings stolen from inside your car. If a thief breaks in and grabs your laptop or golf clubs, comprehensive coverage helps with the damage to your vehicle (like a smashed window), but not for stolen items. This would typically fall under your contents coverage in your home or tenant insurance policy.

Your car insurance likely excludes family theft

A lesser-known limitation is the exclusion of family theft. Basically, while comprehensive coverage does cover other types of vehicle theft, if a family member, or anyone living in your household, steals your vehicle, that’s not covered. Insurance companies assume there’s an inherent level of trust at home, so they generally exclude this risk from your policy. This can sometimes be an add-on coverage, depending on your insurance company.

You must notify your insurance provider before driving again

If you've switched your coverage to storage insurance, you most likely can’t just hop in and drive away whenever you feel like it. Once your car has storage coverage, you must notify your insurance company and reinstate full road coverage before driving again. Most stored vehicle policies drop liability and/or accident benefits coverage, both of which are mandatory in almost every province and territory in order to drive your vehicle legally on public roads in Canada. This means that driving on storage insurance alone could leave you completely uninsured, and you risk facing heavy fines if caught.

Your lender may not allow you to get it

In Canada, insurance is mandatory in every province, and most lenders or leasing companies require you to keep certain protections active, even if the car is parked. They almost always insist on both collision and comprehensive coverage to protect their financial interest in the vehicle. So, before you switch to a stripped-down storage policy, check your lease or financing agreement, as your lender may have the final say.

How much does storage insurance cost in Canada?

So, how much does it actually cost to keep your parked car protected? It often costs significantly less than a regular auto insurance policy, since you're typically reduced down to just comprehensive-only coverage. However, the actual price of storage insurance in Canada can vary quite a bit depending on a few key factors. For example, your actual rate will depend on things like where you live (think hailstorms in Alberta, flooding in Ontario, and theft rates in both), the value of your vehicle, your claims history, and even where your car is stored (a driveway vs. a locked garage vs. a secured storage unit).

Tips to lower your cost even more

You can often lower your premium by choosing a higher deductible, since you’re less likely to make small claims when the car is in storage anyway. You might also score a low-mileage discount, depending on how long your vehicle is off the road, or save extra by bundling your storage insurance with other policies like home or tenant insurance. You can also ask your broker about any additional discounts you may qualify for. The best way to find out how much your vehicle storage insurance policy will cost is to contact a local insurance broker like BrokerLink.

How to buy storage insurance coverage for your vehicle in Canada

If you are ready to buy storage insurance coverage for your vehicle, follow the steps below:

1. Reach out to your insurance broker

Contacting your insurance broker is the first step you should take if you want to buy storage insurance. They’ll break down exactly how storage insurance works in your province and let you know what minimum coverage you legally need to keep. They can also help you figure out which optional protections (like comprehensive coverage) are worth keeping and shop around to find the best policy and price for you.

2. Amend your existing policy

If you already have car insurance, you’ll likely need to make some changes before you officially put your vehicle into storage. You might be able to drop or reduce certain coverages (like third-party liability) or add comprehensive protection to protect against non-collision damage. Just keep in mind that each insurance company likely has their own rules regarding storage insurance, so make sure that you review your policy for any contractual obligations you may have. For instance, if you lease or finance your car, your lender will likely require you to keep liability, collision and comprehensive coverage active.

3. Get in touch with your insurance provider before you start driving again

Once you know when you plan to take your car out of storage and start driving again, you need to contact your insurance provider. Given that car insurance is mandatory in Canada, you cannot drive without it. Thus, you'll need to give your insurance provider plenty of notice so that they can reactivate your full coverage. If you choose to drive without car insurance in Canada, you can face serious penalties, such as hefty fines, the suspension of your driver’s licence, vehicle impoundment, and possibly even jail time.

Find out more with BrokerLink

If you want to learn more about how storage insurance covers vehicles in Canada, contact BrokerLink. One of our licensed insurance advisors can walk you through exactly how each type of storage insurance coverage can protect your vehicle. We can also outline the benefits and importance of maintaining a comprehensive-only policy instead of cancelling outright.

At the end of the day, the BrokerLink team is always available to help you purchase a comprehensive car insurance policy. Even better, we will help you keep your rates as low as possible by offering advice and informing you about discounts you may not have even known existed. For example, if you need to insure more than one car in your household, buying multiple auto insurance policies can result in a major discount.

You can reach us by phone, email, or in person at any one of our locations throughout Canada. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive car insurance quote in minutes.

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