Can I completely cancel my car insurance while my vehicle is in storage?

You can, but we strongly advise against it. Cancelling mid-term typically triggers a short-rate cancellation penalty (you won't get a full pro-rated refund), and any gap in your insurance history — even a legitimate one — can lead to higher premiums when you reinstate. A coverage suspension endorsement keeps your policy active while reducing what you pay.

How long does the suspension need to last before I get a refund?

The vehicle must be out of use for a minimum of 45 consecutive days before you're eligible for a premium refund on the suspended coverages. If you reinstate before 45 days, no refund is issued.

What happens if someone hits my parked car while my coverage is suspended?

Your comprehensive coverage (fire, theft, vandalism, weather damage) stays in place during the suspension period. If another driver hits your parked vehicle, you're still covered for that physical damage — as long as you weren't operating the vehicle at the time.

Do I need to surrender my licence plates to ServiceOntario?

Not necessarily. The suspension endorsement doesn't require you to surrender your plates. However, if you're storing the vehicle for a very long period and want to cancel the policy entirely, surrendering your plates to ServiceOntario is advisable because Ontario law requires every plated vehicle to carry active insurance.

Auto Insurance

Can You Put Your Car Insurance on Hold in Ontario?

By Rob RoughleyNovember 5, 20197 min read

Every fall, we get the same phone call: "I'm heading to Florida for four months — can I just cancel my car insurance while I'm gone?"

The short answer is no, you shouldn't. But there's a much better option that most Ontario drivers don't know about, and it could save you hundreds of dollars without creating the kind of insurance headache that follows you for years.

Why Cancelling Your Auto Insurance Is Almost Always a Mistake

Let's get the most important point out of the way first. In Ontario, every vehicle with licence plates on it must carry active auto insurance. That's not a suggestion — it's the law under the Compulsory Automobile Insurance Act. Getting caught driving without valid insurance can result in fines between $5,000 and $25,000 for a first offence, licence suspension, and vehicle impoundment.

But even if you're not planning to drive, cancelling your policy mid-term creates two problems that cost real money:

Short-rate cancellation penalties. When you cancel an auto policy before the renewal date, most insurers don't give you a straight pro-rated refund. They apply a short-rate calculation that keeps a larger portion of your premium. On a $2,000 annual policy cancelled halfway through, you might lose $200 or more compared to a pro-rated refund.

Gaps in your insurance history. This is the one that really hurts. When you go to get insured again — whether it's three months or a year later — underwriters see that gap and treat it as a risk signal. While Ontario regulations technically prohibit insurers from surcharging solely for a coverage gap, many preferred-market carriers have underwriting guidelines that make you ineligible for their best rates if you can't show continuous coverage. The practical result is the same: you end up paying more.

We've seen clients cancel a $1,800 annual policy to save a few hundred dollars over the winter, only to find their new policy quoted at $2,400 because they no longer qualified for the continuous-coverage discount. That's not savings — that's an expensive lesson.

The Smarter Option: Suspending Your Coverage

Ontario has a standardized endorsement that lets you temporarily suspend the driving-related portions of your auto insurance while keeping the vehicle protected against damage. It's an official Ontario Policy Change Form regulated by FSRA (Financial Services Regulatory Authority of Ontario), and it's designed for exactly this situation.

Here's what happens when you add the suspension endorsement to your policy:

What Gets Suspended

The endorsement removes the four coverages that only matter when the vehicle is being driven:

Third-party liability — covers damage or injury you cause to others
Statutory accident benefits — covers your own medical and rehabilitation costs after an accident
Direct Compensation - Property Damage (DCPD) — covers damage to your vehicle when another driver is at fault
Uninsured motorist coverage — protects you if you're hit by someone without insurance

Since you're not driving, you don't need any of these.

What Stays in Place

Your comprehensive coverage remains active. This protects the vehicle against:

Fire and explosion
Theft or attempted theft
Vandalism
Falling objects (tree branches, ice, hail)
Water and flood damage
Being struck by another vehicle while parked

This is the coverage that actually matters for a stored vehicle, and it stays fully in effect throughout the suspension period.

The Financial Benefit

There's no fee to add the suspension endorsement, and no fee to reinstate your full coverage later. Once your vehicle has been out of use for at least 45 consecutive days, you're eligible for a premium refund on the suspended portions of your coverage. The exact savings vary by insurer and your specific policy, but removing liability and accident benefits from a standard policy for four to five months can translate to meaningful savings — often several hundred dollars.

And critically, your policy stays active the entire time. No gap. No cancellation on your record. No underwriting headaches when spring rolls around.

The Rules You Need to Follow

The suspension endorsement isn't a free-for-all. There are strict conditions, and breaking them can void your coverage entirely:

The vehicle cannot be parked on a public road. It must be stored in a garage, driveway, or private storage facility. Street parking doesn't qualify.
You cannot operate the vehicle at all. Not even to move it across the driveway. If you drive the car while the suspension is in effect, you're driving without the mandatory coverages required by Ontario law — which means fines, licence suspension, and personal liability for any damage you cause.
The minimum suspension period is 45 days. If you reinstate coverage before the 45-day mark, no premium refund will be issued. This endorsement is designed for extended storage, not a two-week vacation.
You must call your broker before driving again. When you're ready to put the vehicle back on the road, you need to contact us to have the reinstatement endorsement added to your policy. This restores all four suspended coverages. Do not drive the vehicle until the reinstatement is confirmed — coverage isn't retroactive.
Time limits may apply. Most insurers cap the suspension period (typically six to twelve months, depending on the company). If you need longer-term storage, talk to your broker about alternatives.

Who Should Use This Endorsement?

We recommend the coverage suspension endorsement for three common situations:

Snowbirds leaving for the winter. If you're spending December through April somewhere warm and your vehicle will sit in the garage, this is the textbook use case. You save on premiums, keep your policy intact, and reinstate when you get home. Just remember — your home insurance has its own requirements about unoccupied homes during heating season, so talk to us about both before you leave.

Seasonal vehicle owners. If you have a convertible, a boat tow vehicle, or a motorcycle that only comes out from May to October, suspending coverage for the winter months makes sense. Note: classic car and antique vehicle policies are already rated for seasonal use, so the suspension endorsement typically doesn't apply — the limited driving is already baked into your premium.

Extended travel or medical leave. If you're going overseas for a few months or recovering from surgery and won't be driving, the endorsement saves money without disrupting your insurance history.

What About Surrendering Your Plates?

Some drivers ask whether they should return their licence plates to ServiceOntario instead. You can do this — returning plates is straightforward and can be done at any ServiceOntario centre. However, when you want to drive again, you'll need to re-register the vehicle, which means getting new plates and potentially paying registration fees.

For most people, the coverage suspension endorsement is simpler. You keep your plates, keep your registration, and keep your policy active. One call to your broker suspends it, another call reinstates it. No trips to ServiceOntario, no paperwork for new plates.

Surrendering plates makes more sense if you're storing the vehicle for a year or longer, or if you're considering selling it and aren't sure you'll drive it again.

The Bottom Line

If you're not driving your vehicle for 45 days or more, don't cancel your auto insurance. The short-term savings aren't worth the long-term cost of a coverage gap and cancellation penalties. Use the coverage suspension endorsement instead — it's free to add, keeps your policy intact, and still protects the vehicle while it sits.

The process takes one phone call. Contact our team at Roughley Insurance and we'll walk you through the endorsement, confirm the savings with your specific carrier, and make sure your vehicle is properly covered while it's off the road. When you're ready to drive again, one more call and you're back on the road with full coverage restored.

If you're a snowbird, we'd also recommend reviewing your home insurance and travel insurance before you leave. Ontario home insurance policies have specific requirements about unoccupied homes during the heating season, and a good travel medical policy is essential for extended stays outside the country. We can bundle all three conversations into a single appointment.

Call us at (905) 576-7770 or email insure@roughleyinsurance.com.