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Can I Suspend Car Insurance for one Month in Canada?

Many people find that they drive significantly less during the winter months. To escape the frigid winter temperatures, some people even leave Canada altogether. If this is your situation, you probably have a vehicle that remains unused during your time away. Thus, you might be wondering, “Can I hold my car insurance for a month?”

Unfortunately, insurance companies don’t usually let customers suspend their service for a single month. Also, while you may not be driving your car for a certain period of time, that doesn’t mean your car isn’t at risk. Your house could catch fire and (subsequently) cause damage to your car, or a tree could fall on your car, or your car could be stolen, etc.. If you suspended your car insurance, you wouldn’t be able to claim for any damages that occur during the suspension period.

How To Suspend Your Car Insurance

The only legal way to suspend your car insurance is to cancel the policy and renew it at a later date. But this may end up costing you more money than you save. Many insurance companies have termination fees that you incur if you cancel your policy early.

Having a gap in your car’s insurance history is also a red flag for insurance companies. This gap can lead to higher insurance premiums when you renew your policy. Is the money you save in the short-term worth the hassle and cost of canceling your policy? That’s up to you to decide.

An alternative option is to reduce the coverage for the time you’re away or not driving your car. You can remove optional features like third-party and collision insurance. This allows you to pay less per month while still retaining your policy. It will save you money, and you won’t have to risk termination fees or increased premiums.

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