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Car Insurance for Parked Cars

A parked car insurance policy is a comprehensive coverage auto insurance policy that vehicle owners can purchase or reduce their current auto insurance policy to in order to protect their vehicle when they are not driving for an extended period of time. 

What is Comprehensive Coverage For Parked Cars?

Street Parked Cars in Winter

Comprehensive coverage for parked cars provides vehicle owner’s coverage in the event a tree falls on it, is stolen, or becomes a victim of vandalism and other dangers listed under specified perils in the owner’s insurance policy while the car is parked. 

Can You Park a Car on a City Street in Ontario When it’s Not Insured?

No, all vehicles in Ontario must be registered and insured to be on any roadways. 

Can You Drive With Parking Insurance?

No. You cannot drive your vehicle while it has parking insurance. There are serious consequences if you do.

Do You Need Insurance on a Car That Doesn’t Run

No, you do not need insurance on a car that doesn’t run providing it is parked on your private property or is in storage. However, if your car has some value, it may be a good idea to purchase parked car insurance. 

Is Parked Car Insurance Cheaper?

Ferrari F12 street parked

Yes, parked car insurance is cheaper as you are reducing the risk of accidents, which reduce personal property damage and personal injury incidents and claims. 

Do I Need Car Insurance If My Car is Not Used?

It is not mandatory to have parked car insurance in Ontario, but it is a good idea to provide protection to your vehicle while not in use. 

Reasons You May Want Parked Car Insurance

There are several reasons you may want parked car insurance. The most common reason is to provide coverage for the vehicle in the event it is damaged while parked or in storage. Other reasons may include:

  • It is a seasonal vehicle
  • You are a snowbird and leave your vehicle at home
  • You have more than 1 vehicle and don’t drive the others
  • To avoid a gap in car insurance
  • To have protected coverage in the event the vehicle is stolen or vandalized
  • To have fire protection 
  • The vehicle is not operational
  • A change in financial circumstances
  • You have lost your license temporarily due to medical issues
  • Your licence has been pulled as a senior and can no longer drive

What Happens if I Don’t Have Insurance on My Parked Car and it Gets Damaged?

Crash damaged cars

If you do not have comprehensive coverage on your parked car and a tree falls on it, you will have to pay the damage costs out of your pocket. Also keep in mind, cancelling car insurance on a parked vehicle may cause a gap in your insurance history which can affect your future insurance rates. 

What Happens If My Car Is Involved in A Hit and Run while it’s parked in Ontario?

There are many times you may leave your car parked in a public place. It may be at the shopping mall, sporting event, amusement park, grocery store, visiting a friend, or even while you are working. In most instances when you return to your car it is in the same condition you left it in. However, there are circumstances when you return to your vehicle and it is damaged, and the person has left the scene. This is referred to as a hit and run. This unfortunate occurrence happens more often than people think. If you have become the victim of a hit and run there are certain things you can do to make it easier for your insurance provider. It is important to document all the details surrounding the hit and run incident such as:

  • The exact location where the hit and run occurred
  • The date the hit and run occurred
  • The approximate time the hit and run occurred
  • The weather conditions at the time of the hit and run
  • Any witness names and contact information 
  • That you have called the police

It is also important for you to provide your insurance company with photos if possible. Some important photos you can take are:

  • The damage that the hit and run incident caused to your vehicle
  • Any debris in the immediate surrounding area that may help identify the person/vehicle that hit your car
  • Location identifiers eg- Shopping mall signage
  • Any other damaged vehicles nearby, or tire marks for example

In order for you to be covered for damages caused to your vehicle in a hit and run incident, you must have collision coverage on your insurance policy, but you will be required to pay the deductible if you make a hit and run claim. 

When Do I Not Need Parked Car Insurance on My Vehicle

If the vehicle is parked on your property or in your garage and it has very little value, or you are just keeping it for parts, insuring it would not make sense. However, even if the vehicle is only worth $2000 it is still worth putting parked car insurance on the vehicle. 

The Importance of Car Insurance

Regardless of whether you drive your car every day, seasonally, or park it for an extended period of time, you should have at least the minimum mandatory coverages on your vehicle when you drive it anywhere in Ontario.  Parked vehicle insurance is not mandatory however, in order to protect your investment it is highly recommended you purchase parked vehicle insurance. Driving without car insurance is against the law in Ontario. Protect yourself, your vehicle, and others by purchasing car insurance. 

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