What is Auto Storage Insurance: Vehicle Winter Protection

When winter arrives, many vehicle owners choose to put their motorcycles, trailers, and classic cars into storage. You may wonder why you need to insure a vehicle that is not in use. After all, if it’s not on the road, what could go wrong? Unfortunately, life is unpredictable, and accidents can happen even when your vehicle is parked. 

Your motorcycle could be stolen, a tree could fall and damage your trailer, or a fire could destroy your classic car. Additionally, if your vehicle is unregistered, you will receive no coverage from your provincial insurance provider, SGI. With auto storage insurance, you can financially protect yourself from these potential risks.

What is Auto Storage Insurance?

Auto storage insurance is a type of insurance that provides coverage for your vehicle while it is stored or parked. Whether you keep your vehicle in your garage or your backyard, a car storage insurance policy can protect it from various risks, such as vandalism, theft, fire, and water damage. It allows you to reduce your car insurance costs by eliminating the need for registration insurance while still providing coverage for any unforeseen events that may occur during the storage period.

Before storing your vehicle, reviewing the legal requirements and bylaw regulations in your province and city/town is essential. Some cities may have bylaws prohibiting unlicensed vehicles from parking on the street. For example, according to The Traffic Safety Act of Saskatoon, an unregistered vehicle should not be parked on a street or public parking lot unless it is appropriately registered and displays valid license plates issued to the vehicle. 

It’s important to note that having an auto insurance policy on your vehicle does not make your license plates valid. By familiarizing yourself with these regulations, you can ensure that you are in compliance and avoid any potential penalties.

Differentiating Car Storage Insurance from Regular Auto Insurance

Purchasing car storage insurance offers several benefits for vehicle owners. Firstly, it provides coverage similar to registering the vehicle year-round, except that it does not provide a valid license to drive and operate the vehicle. 

For example, if you don’t plan on driving your vehicle for an extended period, consider purchasing an auto policy, also known as extended auto or Auto Pak, and reduce your standard insurance coverage to save on costs. 

In such cases, car storage insurance allows you to choose a comprehensive coverage-only policy and decline to add collision coverage. Comprehensive coverage protects your vehicle from theft, hail damage, fire, and other mishaps while it’s not in use. By opting for comprehensive-only coverage, you can lower your car insurance premiums since collision damage coverage is not included.

Understanding Insurance Instructions for Car Storage

When you decide to put your vehicle in storage, it is important to inform your insurance provider. This allows you to make necessary changes to your policy, such as removing collision coverage while the vehicle is parked. However, it is advisable to consider re-adding collision coverage when you plan to drive the vehicle again. 

It’s crucial to keep your broker informed about any changes in the status of your vehicle, whether it’s becoming registered, unregistered or being used differently during the storage period.

For example, with campers or RVs during the storage period, it is permissible to sleep and dine inside your cabin or travel trailer. However, it is crucial to inform your broker about the monetary worth of the vehicle once it is no longer licensed, especially if you plan on utilizing it for these purposes to ensure that your coverage remains applicable.

Car insurance policies are a valuable investment for vehicle owners who store their vehicles during the winter or for an extended period. It provides coverage for various risks and helps reduce insurance costs by eliminating the need for plate registration insurance. You can protect your vehicle and financial well-being by understanding the importance of auto storage insurance and following the necessary steps to ensure proper coverage.

Remember to inform your insurance provider when putting your vehicle in storage and consider re-adding coverage when you plan to drive it again. With car storage insurance, you can have peace of mind knowing that your vehicle is protected, even during its time in storage.

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