Parking A Vehicle For An Extended Period Of Time?

When parking a vehicle for an extended period of time, you have three main options. In the insurance world an extended period of time would be anything longer than 45 days. The first option is to do nothing, pay your premiums as you normally would and leave well enough alone. 

The second is what we call a suspension of coverage. In this case the policy is endorsed with a coverage suspension start and stop date, the endorsements are Ontario Policy Change Form 16 & 17. With this option road coverages are removed but liability coverage remains in force (at a slightly discounted premium). The advantage is that if a vehicle is stolen and an accident results the liability coverage will respond if the registered owner is sued.

The third option is to delete all coverages other than the Comprehensive (theft) portion. This saves the most premium dollars, but it also removes liability coverage. In the example above, if the vehicle is stolen and is involved in an accident, a third party could launch a suit. If the liability coverage has been removed entirely, the policy would not respond and it would be the registered owner’s responsibility to defend themselves in court, a costly proposition.

It's a bit of a catch 22. Personally, I prefer suspending coverage if you're going on an extended vacation and know exactly when you'll be leaving and returning. You don't save as much now, but you won't find yourself sleepless because you're being sued due to someone else having stolen your vehicle. It's always better to pay an affordable amount now, rather than having to deal with a larger unknown later.