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11 minute read Published on Jan 12, 2026 by BrokerLink Communications
Ever find yourself wondering, “I’m not driving for a few months, can I just hit pause on my car insurance and stop paying?” It’s a question that pops up for many Canadians, especially if you’re planning a long vacation or storing your summer convertible or motorcycle for the winter. After all, why pay for coverage when your car is just sitting there?
But here’s the thing: in Canada, you generally can’t fully “pause” your insurance, at least not in the same way you might freeze a gym membership. Insurance regulations require most vehicles to carry at least liability coverage as long as they’re registered, and especially if they're parked on a public road.
However, there are ways to adjust your coverage and lower your costs if you’re not driving and are storing your vehicle somewhere safe. For example, in Ontario, you can add an OPCF 16: suspension of coverage endorsement, which allows you to temporarily reduce certain parts of your coverage to help you save money if the vehicle is off the road for at least 45 days or more.
When you know you won’t be driving for a while, it can be tempting to cancel your car insurance outright. After all, no driving means no risk, right? And no more paying monthly premiums for a car you're not driving. But the truth is that in most of Canada, pausing (or reducing) your coverage is almost always a smarter option than cancelling altogether. Here's why:
In most provinces, if your vehicle is still registered and parked on public property, you’re required to maintain at least basic liability insurance. This means that if you cancel your policy without properly storing or deregistering your vehicle, it could leave you facing fines or even legal trouble.
This is really important. The thing is that many insurance companies look at your continuous coverage when they calculate your future premiums (with some exceptions in Ontario). If you cancel, you create a “gap” in your history, which can make you look riskier to insurance providers. Even a few days without coverage, let alone a few months, could mean higher rates when you sign up again, or worse, a harder time finding coverage at all.
Plus, maintaining some level of coverage can help you avoid the headache of having to start from scratch. You’ll get to keep your loyalty discounts, preserve your driving and insurance history, and avoid facing higher premiums when you're ready to drive again. To learn more about how to legally and affordably reduce your policy, such as switching to comprehensive-only sometimes referred to as parked car insurance, talk with a BrokerLink advisor today.
While we've already mentioned that Ontario drivers have specific options to “pause” their car insurance using the OPCF 16 forms (and the OPCF 17 form to reinstate it), the rules can change quite a bit depending on where you live in Canada. Here's a breakdown of how pausing car insurance works throughout Canada:
Province
How to pause
Alberta
You can temporarily suspend certain coverages with the SEF 16 endorsement and reinstate them later with the SEF 17.
British Columbia
Under ICBC, you cannot temporarily suspend your current insurance. However, ICBC offers a specific storage policy.
Manitoba
Vehicles are insured through the public MPI. You can talk to your Autopac agent or broker about switching your road coverage to Lay-Up coverage. You may have to pay a short-rate cancellation fee to transfer coverage.
Ontario
You can temporarily suspend certain coverages with Ontario's policy change forms: OPCF 16 to suspend and OPCF 17 to reinstate.
Quebec
You can ask about the Q.E.F. No. 16 endorsement, which allows you to suspend civil liability coverage while your vehicle is in storage. This might earn you a credit on your policy, as long as your premium hasn’t already been calculated on a 12-month seasonal basis. You must also notify la Société de l'assurance automobile du Québec (SAAQ) before you store or start reusing your vehicle.
Saskatchewan
Vehicles are insured through the public SGI. You can talk to your SGI CANADA insurance broker about switching to storage insurance or lay-up coverage.
Atlantic provinces
Most Atlantic provinces don’t have a true “pause” option, either. Instead, drivers can reduce their coverage to parked car insurance while their vehicles are stored. If you choose to cancel, you may be required to return your licence plates until you choose to reinsure.
It's not much of a surprise to hear that you're thinking about pausing or reducing your coverage in Canada to help you save money. After all, according to the Canadian Underwriter, in October 2024, Canadian auto insurance rates had increased 12.2% nationally when compared to the same time in 2023, with the worst of it in Alberta at 12.9%, thanks to things like inflation, extreme weather events, and rising claims costs, reports Statistics Canada.
So, if you are considering it, here’s an easy, step-by-step guide to help you through it:
Start by calling your insurance provider or broker. They’ll review your specific policy, explain whether pausing is possible in your province, and outline any alternative options such as switching to comprehensive-only or lay-up coverage.
Ask your insurance broker or agent about any fees for processing these changes. For example, in Manitoba, you may be required to pay a short-rate cancellation fee to transfer coverage from road coverage to lay-up coverage. You'll want to compare this fee with what you'd be saving on your coverage to see if it's worth reducing or switching policies.
If you live in a province that requires forms, such as Alberta or Ontario, you'll need to fill them out. Also, you may need to fill out an online form from your public insurance provider for permission to store your vehicle, like in Quebec, so you'll need to find out if that's required as well.
Once everything is submitted, make sure you receive written confirmation from your insurance provider about your coverage change. You'll want to confirm that your new coverage dates, any credits, and the reinstatement process are clearly documented.
Taking the time to pause your insurance properly helps you avoid coverage gaps and future rate increases. But if you’re not sure where to start, contact a BrokerLink advisor. We'll guide you through every step while making sure you stay protected (and save money) while your car is off the road.
When you pause your car insurance policy in Canada, you may lose access to basic coverage provided by your policy. You may also lose access to certain optional insurance coverages you added to your policy. We break down each type of coverage below so that drivers who pause their policies will understand the protection they are missing (or keeping):
Depending on your province, when you pause your policy, you often lose third-party liability coverage, which is mandatory coverage in Canada. This means if you’re involved in an accident that injures someone else or damages their property, you’re personally on the hook for all costs, such as medical bills, vehicle repairs, and even legal fees.
That’s why driving while your car insurance policy is paused is typically illegal. If you're caught driving without active liability coverage, you could face hefty fines, licence suspensions, and even vehicle impoundment.
DCPD covers damage to your own car when another driver is at fault (in certain provinces like Ontario and Alberta). Once paused, this protection disappears. This means you won't be able to go through your own insurance company to file an insurance claim.
This coverage protects you and your passengers if you're hit by an uninsured, underinsured, or hit-and-run driver. Pausing your policy usually means this crucial coverage is gone, which, again, is why it's typically illegal to drive while your insurance is paused.
Accident benefits help pay for medical expenses, rehabilitation, and lost income after a collision, no matter who’s at fault. Pausing your insurance wipes this out, too, so if you choose to drive while your insurance is paused and a car accident happens, you could be left with huge personal expenses.
Collision coverage helps repair or replace your car after a crash, regardless of fault. If your policy is paused, and you still choose to drive, you’ll have to cover these costs out of pocket.
Here’s the good news. If you choose to pause your policy strategically rather than cancel it entirely, you can typically keep or add comprehensive insurance. Also known as “parked car insurance,” it protects against non-collision events like theft, fire, hail, vandalism, water damage, or falling objects, like tree branches. Comprehensive coverage is great for seasonal vehicles or cars in storage because you never know when one of these non-collision events could happen.
Deciding whether to pause your car insurance is kind of like deciding if you should put your car into storage for the winter. What we mean is that it might sound like a no-brainer at first, but there’s a lot to weigh before you do. Below, we help break down the good and the bad so you can make the right call.
Pros
Cons
You can still save money if your car is off the road for months.
While paused, your car legally can’t be driven.
You can still protect your car against non-collision-related damage while saving money.
Some insurers charge fees for pausing or reinstating a policy.
Pausing keeps your insurance history continuous, avoiding gaps in coverage from insurance cancellation.
You may face higher costs when re-adding optional coverages later.
Maintaining your policy helps preserve valuable discounts like loyalty or claims-free discounts
Reactivating a paused policy is easier and cheaperthan starting from scratch after a cancellation.
Not everyone can or even should fully pause their car insurance coverage. If you're in this boat, the good news is that you’ve still got options to help you save money. Here are a few alternatives that can help you save without risking your car or your insurance history.
If your car is going to be stored in a garage for winter or long-term travel, you can talk to your broker or insurance provider about switching to parked car insurance (comprehensive-only coverage). Many insurance companies offer this type of policy, though some provinces may call it something else, like lay-up coverage. This type of policy will continue to protect your car against non-driving risks like theft, fire, vandalism, and weather damage, and it’s generally much cheaper than full coverage.
If you think it's possible that you'll still need to drive occasionally, you may want to consider joining a usage-based insurance program. Insurance companies monitor your driving habits with a mobile app or a small device, and if you drive less or drive safely, you could earn discounts of up to 25% or more. You can even earn a discount of up to 10% just for signing up.
Consider pay-as-you-go insurance. Depending on where you live in Canada, you might be able to switch to CAA's MyPace pay-as-you-go insurance, which charges you based on the actual kilometres you've driven. This can be a great option if you know your car usage will drop significantly for an extended time, but you also know you'll still need to drive it on occasion.
If you know your car won’t be on the road much, another option for you is to temporarily remove some of your optional coverages, like collision coverage or loss of use coverage. Just make sure you keep in mind that this means you won’t be covered for certain incidents if you decide to take an unexpected drive.
Finally, make sure you take advantage of all potential car insurance discounts, such as installing winter tires, bundling policies, taking a defensive driving course, being part of a group, or even being a student. These can all help reduce your car insurance premium, even if you keep your car fully insured. Talk to your broker about what types of discounts are available to see if you may qualify for any more.
Whether you decide to pause your car insurance or keep cruising with full coverage, teaming up with a broker, like BrokerLink, can make all the difference. Think of it like having a personal guide through a maze of fine print and confusing options. Here’s why working with a broker is a great idea:
Unlike agents who work for one specific insurance company, brokers work for you. They’re completely independent, so their top priority is finding the coverage that fits your needs instead of pushing one company’s products. Whether you're storing your convertible for the winter or driving cross-country all summer, a good broker takes the time to understand your situation and recommends insurance solutions that truly make sense for you.
Let’s be honest - shopping for insurance isn’t most people’s idea of fun. But that’s where a broker shines. They handle all the comparison shopping, paperwork, and fine print so you don’t have to. From the first phone call, a BrokerLink advisor gets to work finding you the best options. Whether you need minimal storage coverage while you’re on an extended vacation or full insurance protection for daily commuting, your BrokerLink broker takes care of it all.
Finally, BrokerLink has been around since 1991, and our advisors know the Canadian auto insurance market inside and out. Every one of our advisors is fully licensed and trained to help you navigate tricky situations, like finding out if there are ways to pause your policy without losing your discounts or the best way to protect your vehicle in storage.
At the end of the day, a broker isn’t just someone selling you a policy. Think of them as your personal insurance teammate. If you want to see how easy it can be, just talk with a BrokerLink advisor today.
Pausing or reducing your car insurance (instead of cancelling) can still save you money if your car is off the road, but you need to do it properly, and you need to make sure you understand what protections you're giving up. Keeping comprehensive-only coverage helps protect your vehicle against common storage risks while helping you to avoid a dangerous lapse in insurance history that you'd face if you chose to cancel altogether.
To learn even more about pausing your auto insurance policy, contact BrokerLink. Our team consists of auto insurance experts who can help you pause or reduce your policy and explain the pros and cons of doing so. We can also review your policy to inform you of any potential fees or consequences that may come with a temporary policy suspension.
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 quote in minutes.
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