What Is Parking Insurance?
Parking insurance is essentially a modification to your insurance policy that keeps only the comprehensive component that protects your vehicles from specific perils when stored or off the road. While you may think parking a vehicle means it’s safe from any threats, you can never be too sure.
What it Covers
Parking insurance protects your vehicle against damage, theft, and vandalism, and parking lot accidents are also more common than you think.
It also provides coverage for:
- Cracked windshields
- Falling or flying objects
- Civil unrest
- Fire
- Flooding
- Lightning
- Hail
- Windstorm
- Earthquake or explosion
- Damage from falling aircraft parts
If your parked car is damaged from a hit-and-run accident, you’ll only be covered if you have collision or all-perils coverage.
Does Home Insurance Cover Damage to a Parked Vehicle?
No, home insurance will not cover damage to a vehicle parked on your property. However, it may cover personal items stolen from your car.
Is Car Parking Insurance Required in Ontario?
Car parking insurance is not required in Ontario. However, it is highly recommended, as you never know what might happen even when your vehicle is parked.
Parking an Uninsured Vehicle on the Road
It’s generally inadvisable to park your car on the road without parking insurance, as you won’t be able to move your vehicle legally. Insurance is mandatory to drive in Canada.
Do You Need Parking Insurance for Stored Vehicles?
While not required, purchasing parked insurance for vehicles stored in offsite facilities is recommended.
Why You Need Insurance for a Parked Car
There are many reasons you might need insurance for a parked car, including the following:
- To cover potential damages
- In case of an interruption in policy history
- In case of changes to your financial circumstances
- To cover potential losses from a fire
- In case you lose your driver’s licence due to a medical emergency
You might also need parking insurance if you:
- Drive a seasonal or classic vehicle
- Drive more than one vehicle and store one or the other for long periods
- Want to avoid gaps in your policies
- Don’t have access to a private or secured area for parking your car
- Can no longer drive your vehicle because your licence is permanently suspended
Purchasing parking insurance also provides the following benefits:
- Cost savings: You won’t have to pay for repairs out of pocket if anything happens to your vehicle while it’s stored or parked.
- Peace of mind: Worrying about your vehicle when you’re not in town can be stressful. Fortunately, you can get peace of mind knowing your car is covered for potential damages.
How Much Does Parking Insurance Cost?
A parking insurance policy is cheaper than traditional coverage. Insurance companies will calculate your premiums according to the following factors:
- Personal information: Your age, occupation, gender, and even marital status can influence your insurance rates.
- Location: Some insurance premiums are higher in areas with expensive living costs. Theft rates in your location will also affect your premiums.
- Type of vehicle: Your vehicle’s make, model, and production year will all play a part in determining your rates. Commonly-driven vehicles with smaller engines typically cost less to insure.
- Coverage amount: If you hardly drive your car regularly, you might qualify for lower rates.
- Driving history: You may not qualify for parking insurance if you’re unreliable, have a bad driving record, or have outstanding fees on things like parking tickets.
Parking insurance is usually much cheaper than full auto coverage because it removes liability and collision protection.
Driving with Parking Insurance
Parking insurance doesn’t cover damage incurred when you’re on the road. Instead, Ontario law mandates that all drivers should have the following types of insurance:
- Third-party liability (minimum $200,000, but most policies recommend $1M+)
- Direct compensation property damage (DCPD)
- Uninsured automobile coverage
- Accident benefit coverage
What to Do if Your Parked Vehicle Is Damaged Without Insurance
You must shoulder the repair and replacement costs if your vehicle incurs damage without insurance. You can add comprehensive insurance to your existing auto policy to avoid this in the future.
If your car becomes the victim of a hit-and-run and you don’t have collision insurance, remember to note the following details to present to the authorities:
- The precise location of the incident
- The date and time the incident occurred
- The weather conditions during the incident
- The damage your vehicle incurred (including photos and videos, if possible)
- Any damaged cars nearby, including the vehicle model and plate number
- The contact information of any witnesses
Tips for Protecting Your Parked Vehicle
Where and how you store your vehicle is essential to keeping it safe. Consider these tips when storing your car:
- Park your vehicle inside a garage, if possible.
- Use a vehicle cover when parking your car outdoors.
- Remove or secure your valuables from the vehicle.
- Speak to a mechanic about vehicle maintenance if leaving your car in a storage unit long-term.
Key Advice from MyChoice
- Keep some coverage even if you’re not driving the car. Cancelling insurance completely leaves your vehicle exposed to theft, vandalism, or weather damage, and might lead to insurance lapses, which are negative for your premiums long term.
- Consider parking insurance for seasonal vehicles. It’s a simple way to reduce premiums while your car is in storage.
- Switch back to full coverage before driving again. Driving with parking insurance only is not allowed in Ontario.