Most vehicle owners realize that they need to have car insurance. For Canadian drivers, this is not an option. It is mandatory to have car insurance. There may be exceptions to this. It may apply to stored cars. If the driver will not be driving the vehicle, then it does not require insurance.
Insuring a Garaged Car
There are many different places where people park their vehicles. Overnight parking sometimes requires parking the vehicle in front of the house. Others may have a driveway they can use. Then others have a garage that will house their parked vehicle.
It is not uncommon for many people to use their garage for other purposes. What they may not realize is that this is costing them money. Insurance companies do care about the parking of vehicles. Where a car owner uses the garage for parking, the garage could add to insurance savings.
Why Do Insurance Companies Care About Car Parking?
How much the insurance will care about where your car is parking depends on the kind of insurance you have. It is especially true if you have gone beyond the basic mandatory insurance. It will apply if you have comprehensive insurance.
What is Comprehensive Insurance?
This type of insurance covers damage done to cars not caused by an auto accident. It can include the kind of parked car damage that can occur.
Common Types of Comprehensive Claims
Natural disasters can occur as a result of a storm such as a hurricane or a tornado.
Fire Damage and Explosions:
If the car happened to set on fire as a result of a default an insurance claim may be valid. Coverage would be that as outlined under fire damage.
If the car was in the middle of a protest, it could get damaged.
Vandalism and Theft:
Keying is one type of damage that can damage Cars Tires can get slashed, and cars get stolen. It is more common than what people realize.
The Statistics on Stolen Vehicles
Many people don’t realize how prevalent vehicle theft is. Across Canada, in 2016 it totalled 78,710. Just in Quebec alone, it was 11,926. It was slightly higher for Ontario at 17,223.
How Insurance Companies Can Keep Their Comprehensive Claims Down
Reduction in Vandalism and Theft
Vandalism and theft are just one of the standard occurrences. It generates an increase in insurance claims. It is if the car is less assessable to this type of damage then it benefits the Insurance Companies. Parked cars that are in garages are at less risk. Therefore the Insurance Companies recognize this. They encourage their clients to use garage storage. To do this, they will offer a discount on the premium.
It isn’t just vandalism and theft that are concerns either. The natural disasters are of another matter. The weather patterns are changing across Canada. There are higher risks for natural disaster claims. Although many of the provinces don’t have tornadoes and hurricanes. They are not exempt from violent storms and high winds. Quite often there are claims made as a result of damage from hail. Or a tree has fallen on someone’s vehicle.
Natural Disasters are Possible in Canada
The data about natural disasters in Canada are good indicators. Insurance Companies pay attention this data.
- In 2013 in Toronto, Ontario there was a significant flood. Many people had to abandon their vehicles because of the flooding.
- The horrendous ice storm in 1998. It badly affected Quebec. A lot of damage occurred to many parked cars that were in driveways. Just like many of the parked cars on the streets. Fallen tree branches were the cause. And/ Many of the tree branches were laden with massive ice accumulation.
- The Fort McMurray Fire was just another terrible occurrence. It shows Canada is not exempt from natural disasters
Does the Type of Garage Matter?
For homeowners, many of them have garages attached to their homes. Insurance Companies favour these. Extra protection comes from home alarm systems.. If someone tries to break into the garage, the alarm system will alert them. It helps to ward off theft and even vandalism. It doesn’t get much better than this for the Insurance companies. Garages with locks provide more protection for the vehicles.
For those that rent instead of own their own home, many have the ability to use underground parking. It too affords better protection. It is when compared to vehicles parked in an above ground parking lot. How much extra protection it affords against vandalism and theft depends. If the garage has a good entry and exit system, this is better security. Some of these underground garages have security cameras installed. Camera monitoring is often done by the security staff that looks after the building. Extra protection is in place.
These are all factors that will tend to give Insurance companies more confidence. They may offer better premiums based on this.
Every Insurance Company is Different
It is standard for every Insurance Company to ask specific questions. It is part of the screening when a client wants insurance. At the same time, the insurance shopper has the right to ask questions. One of these should be about what discounts the Insurer is offering.
Keep in mind that rates for garaged cars can be different by province. Insurance companies take into the account various statistics concerning the different provinces. More concern is evident when there are higher rates of car theft. It could factor into the garage car discount that the Insurance Company is willing to give.
Think About Renting a Garage
If an insurance company is going to offer a reasonable rate for garaged cars, it might be worth renting garage space. There are some homeowners who rent out their garage. Check to see if a neighbour has a vacant garage. They might want to rent it.
Thinking about discounts like those possible for garaged cars is a sound move. The money saved on premiums can be substantial and well worth shopping for