Parked car insurance

Even if your car is parked and not in use, it can still be at risk. In fact, approximately 20% of all motor vehicle collisions occur in parking lots. That's not all. Your vehicle is also vulnerable to falling objects, flying objects, theft, and other related damages that could cost you thousands in unexpected repairs or replacements.

Why you shouldn’t cancel your car insurance for a parked vehicle

If you're not actively driving on public roads, it's understandable why you may want to cancel your car insurance policy, like third-party liability coverage and collision insurance, if you've opted for it to save money. But leaving your parked vehicle without parked car insurance in place may be the wrong move.

Keep reading to learn more about parked car insurance, including what it is, why it is important, and how BrokerLink can help you find it.

What is comprehensive coverage or parked car insurance?

Parked car insurance, also known as comprehensive coverage, is a type of optional insurance policy that safeguards your vehicle against a wide variety of non-collision-related damages known as insured perils, and your vehicle will only be covered while parked if these specific perils damage it.

Why comprehensive coverage is essential for parked vehicles

While comprehensive car coverage options may vary between insurance providers, they typically provide financial protection to policyholders against vandalism, water damage, fire damage, falling objects, windstorms, and more.

The rising risks: vehicle theft and weather damage in Canada

Parked car insurance is ideal for those who do not drive frequently or need to store their vehicle for an extended period. For example, if you're planning on an extended vacation, are going out of town for work, or need to store your vehicle during the off-season, winter vehicle storage coverage is a must.

Don't believe us? According to the Insurance Bureau of Canada, the cost of insurance payouts for vehicle theft in Canada hit an all-time high of $1.5 billion in 2023, which was an extensive increase over previous years. ​Specifically, Alberta recorded a 1% theft rate increase, with the total value of these insurance claims increasing by 11% since 2023.

So, even if your vehicle is parked in a secure garage or parked on the side of the road, theft and other damages can happen when you least expect them to.

When to consider parked car insurance: storage and off-season protection

The same can be said of Canada's harsh winter conditions. With heavy rainfall, snow, and unpredictable weather conditions, the chances of your parked vehicle being hit by flying objects aren't zero, which is why many Canadians tend to opt for parked car insurance, regardless of it not being legally mandated.

What does comprehensive insurance coverage protect you from?

Comprehensive coverage is intended to cover losses outside those covered by collision. With parked car insurance, your vehicle can be protected against specific perils or risks, including vandalism, theft, fire, flying or falling objects, and more.

Unlike other types of car insurance coverage, parked car insurance typically does not feature any sort of collision car coverage or liability car insurance. Some example scenarios where your comprehensive insurance covers you include:

• A hailstorm damages the exterior of your parked car, causing dents and a smashed windshield.
• A thief steals your vehicle while it’s parked in a public lot, requiring you to purchase a new vehicle.
• A tree branch falls on your car, shattering the front end.

Are hit-and-run accidents covered by comprehensive car insurance policies?

Comprehensive coverage does not cover hit-and-run accidents, even if the unidentified driver hits your vehicle parked on the side of the road. Luckily, however, if you live in a province where uninsured motorist insurance is mandatory, like British Columbia, Ontario, Alberta, New Brunswick, Newfoundland and Labrador, or Nova Scotia, you would receive coverage under this auto insurance policy.

Now, let's say you live in a province like Saskatchewan or Manitoba, where unidentified motorist insurance is not mandatory. If you purchased collision coverage or all-perils auto insurance, then your damaged car would receive coverage for hit-and-run damage. Otherwise, you would be required to pay for repairs out of your own pocket. If you're a victim of a hit-and-run, ensure you document and take note of the following:

• The precise location, date, and time the accident happened.
• The weather conditions at the time of the incident.
• The names and contact information of any witnesses.
• The time you called the police and the name of the officer you spoke with, if applicable.
• The damage caused to your car
• The presence of debris in the surrounding area could help identify the person or vehicle responsible.
• The presence of any other damaged cars nearby.

How to reduce parked car insurance costs

Because comprehensive and collision coverage is not legally mandated like liability coverage and other policies, adding these to your insurance plan will increase your overall premiums. However, there are ways you can save on your auto insurance coverage premiums:

Bundle your parking insurance, home insurance, and other policies

If you have home insurance and other policies already with a specific insurer, consider adding your parked car insurance with them to bundle your coverage. Doing so can lead to discounts between 5% and 15% on your premium.

Maintain a clean driving history

Safe driving will minimize your risk of getting into an at-fault accident or receiving traffic violations, which can increase your risk profile. The safer a driver you are, the more savings you can expect on your premiums.

Equip your vehicle with security features

According to The Sun, several car models — particularly those made in 2020 or later — have faced insurance increases of up to $1,500. To reduce the risk of your vehicle being stolen, add a steering wheel lock, dash cameras, and other security features. Your insurance provider will lower your rates in response.

Ask your insurance provider about discounts

To save even more money on your parking insurance, don't forget to ask your insurance company whether you qualify for any discounts. Common discounts include being a safe driver, maintaining a claim-free insurance history, completing a defensive driver course, and more.

Work with an insurance broker

Finally, working with an insurance broker in Ontario can also help you save on costs. Brokers work independently from providers, allowing them to customize your coverage to your needs and financial circumstances.

How to pause or adjust your auto insurance policy

If you plan to store your vehicle for an extended period, your provider may offer you the option of pausing or adjusting your insurance, rather than having to cancel it. Here's what you need to do:

1. Review your insurance documents

First, review your insurance plan to determine whether adjusting or pausing your policy is possible. Note that while you may be able to do so, there may be a fee you need to pay to your provider beforehand.

2. Contact your insurance provider

Once you've reviewed your policy, contact your insurance company and inform them that you would like to make a change to your plan.

3. Consider vehicle storage insurance

Depending on your insurance provider, you may have the option of purchasing storage vehicle coverage. This insurance covers your vehicle parked in storage against the many risks that could cause damage. Note that in more cases, this will need to be purchased separately.

Self-insurance: an alternative to parking insurance

If parking insurance isn't something you're interested in, you can still consider self-insurance. Self-insurance occurs when an individual sets aside money to pay for potential costs for losses that their insurance company would pay for. For example, if you don't want to purchase parked car coverage, you can set aside money in your bank account for future expenses.

Even if it’s tempting to cancel your insurance while your car is not in use, doing so can lead to gaps in coverage, expensive out-of-pocket costs, and other risks that could impact your finances. Instead, speak with an insurance expert to explore options that fit your needs and budget.

Contact BrokerLink for affordable insurance coverage

At BrokerLink, we help customers purchase affordable car insurance. Whether you're looking for parked car insurance, accident forgiveness, or other types of coverage, know that our insurance brokers will go above and beyond to ensure you're happy with your coverage.

To work with the BrokerLink team, contact us directly over the phone or via email. You can also get a free insurance quote using our online quote tool whenever you like!

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