As insurance costs continue to rise, many drivers wonder if they can temporarily pause their car insurance to save money. Whether you're planning extended travel, storing a seasonal vehicle, or facing financial challenges, understanding your options for modifying car insurance coverage is crucial. The short answer? While you can't completely "pause" your coverage in Ontario, there's a special provision called OPCF 16 (Ontario Policy Change Form 16) that might help you achieve something similar. Let's break down what's actually possible and what you need to know.
Despite what many drivers hope, there's no simple "pause button" for car insurance in Ontario. This is because:
OPCF 16 (Ontario Policy Change Form 16), your official ticket to temporarily reducing your coverage, offers a formal way to temporarily suspend specific parts of your auto insurance. This endorsement helps reduce premiums during periods when your vehicle is not in use, like when you're storing it for winter or taking an extended trip.
Coverage elements eligible for suspension under OPCF 16 are:
But there's a catch - you'll need to meet some requirements. Your car must be safely stored away from public roads, and you absolutely can't drive it during the suspension period. You'll also need to keep your vehicle registration valid, and your insurance company must give you the green light before making these changes.
It's important to note that these coverages are not completely suspended but are only reduced during periods when the vehicle is not in use or operation.
For example, if your car is parked and not in use, and someone hits it, you can still claim under DCPD. However, this is valid only if the vehicle was not being used and you have opted for OPCF 16. Also, note that OPCF 16 requires the vehicle to remain unused for at least 45 consecutive days.
When OPCF 16 isn't the right fit, comprehensive-only coverage offers another way to reduce costs while maintaining protection and includes the following:
Keep in mind that under comprehensive-only coverage, only protection against non-driving risks like theft or vandalism applies. Other types of coverage will not be available.
Opt for Comprehensive-Only coverage if you want protection exclusively against non-driving risks like theft, fire, or vandalism while your vehicle is in storage. However, if your goal is to maximize cost savings by suspending most coverages during an extended period of non-use, OPCF 16 is the better choice. At Begin Insurance, we recommend OPCF 16 as it is a preferred method that provides a balance of cost savings and peace of mind by maintaining some level of protection against risks.
When you're ready to hit the road again, you'll need another endorsement called OPCF 17 - Reinstatement of Coverage. This is your way back to full coverage.When you're ready to return to full coverage after 45 days, keep in mind the following for reinstatement:
Coverage modifications through OPCF 16 or alternative options make sense in several common scenarios. This could include:
If you’re financing or leasing your vehicle, most lenders or leasing companies require you to maintain full insurance coverage as part of your agreement. Reducing coverage could violate these terms, so it’s important to check with your lender or lease provider first. In some cases, you may need written permission or a formal letter from them to proceed with any coverage changes.
When evaluating coverage modifications, it’s crucial to weigh the financial impact carefully. Here are some key factors to consider
The best way to handle any insurance changes is to make informed decisions based on your specific situation. Think about how long you'll need modified coverage and where you'll store your vehicle. Consider any provincial requirements and financing obligations you might have. Our team at Begin Insurance can help you sort through all these details to find the best solution for your needs. Get in touch with us to discuss what might work best for you.
Posted Apr 27, 2019