# What would you do with your car insurance if you don't drive often



## frugalmini (Feb 19, 2011)

I haven't driven my car since January. It's a very small car and was stuck in my back alley. I dig it out once just to run the engine and it was stuck again. I think I will just wait until the snow melt. XD. I'm walking everywhere or take the bus. And I like it. Only call taxi when it's very cold or need to get lots of grocery.

Just remember I'm actually paying $100+ per month for my auto insurance (third party, I didn't insure my own car). Because I paid in full when I got the insurance, so I almost forgot about it. 

Don't know what I can do about it. I do like to keep my car for the summer. Should I talk to the insurance company about it? And what type of request will this be? 

Thanks a lot


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## OhGreatGuru (May 24, 2009)

You can try Googling Seasonal Car Insurance, but I don't know how readily available it is in Canada.


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## LBCfan (Jan 13, 2011)

Move to Sask. Buy a $1K car. Pay very little.


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## the-royal-mail (Dec 11, 2009)

Be careful about an interruption in insurance coverage. When seeking car insurance, you are asked how many years of continuous coverage you have. If you still have the car with the basic fire & theft that should be sufficient to ensure continuous coverage. The point is not to cancel the policy. If you do, try to get a letter of experience from your company before you leave. This will be helpful when seeking future coverage from another company. If you want to keep the car for 6 months per year this is about the best you can do. I've lived with and without a car and both are practical if you live in the city. These days crowded buses make transit an unappealing option and driving a bicycle on city streets is just asking for trouble. No way would I ever risk my life exposed in speeding traffic ingesting engine exhaust and glass and steel whizzing by at high speeds. Lots to consider.


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## Guest (Mar 8, 2011)

the-royal-mail said:


> Be careful about an interruption in insurance coverage.


And just to add ... from a boating forum, I've read that persons have cancelled their auto insurance since they're away at sea for a year or two. When they get back they're treated ... billed ... as new drivers, yikes, so best look into that.


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## Four Pillars (Apr 5, 2009)

I think Royal is right. Make sure they know you aren't using the car for commuting. 

You might want to do some analysis on your costs. If the car is sitting for 4+ months, it's possible that you could save significant money by selling it and just renting / autoshare etc when the weather is better.

I wouldn't sell it just to save $500/year, but if it's a couple of thousand...might be worth thinking about.


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## Plugging Along (Jan 3, 2011)

I believe you can also look at just fire insurance for the winter when you are not driving. This works if it's a longer period of time like 4 o5 months min. You are still considered insured, but just make sure when you call.


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## crazyjackcsa (Aug 8, 2010)

I'm confused are you paying more than $100 a year or a month?


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## daddybigbucks (Jan 30, 2011)

i walk to work, and i converted my insurance to "pleasure use only" which saved me a bit and i dropped the deductable right now.

I used to love driving, now i cant stand it.


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## brad (May 22, 2009)

You could also see if anything like Zipcar is available in your community -- here in Montreal we have Communauto and I have been strongly considering (for several years now, still haven't decided) getting rid of my car and going with them. It's "pay as you go" insurance: the insurance is included in the hourly rate for using the car.

Car-share is a lot cheaper than owning your own car -- in addition to the drastic reduction in insurance costs, you don't have to take time or pay for maintenance and repairs, buying and changing snow tires, etc., and of course there's no interest to pay on a car loan. Membership fees are relatively low (a one-time signup fee that may be around $500, and then an annual membership fee of anywhere from $40 to $400/year depending on what plan you choose, and then a per-hour or per-kilometer charge. When you add all those up it comes out to far less than you'd pay if you'd owned your own car, according to all the independent analyses I've seen (Consumer Reports, Protegez-Vous, etc.).

But of course there's one big drawback: the loss of convenience. You can't just walk out your door anytime you like and get in your car, and if you use the Zipcar you have to get it back to the garage when you said you would, because there might be another person waiting to use it.

Even so, I have friends here in town with families (two or three kids) who do just fine with a combination of Communauto, public transportation, and taxis; they've done the math and they're still saving thousands per year by not owning their own cars.


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## the-royal-mail (Dec 11, 2009)

Yes, I too have gone car-less and agree that it can be much less stressful and you definitely save a boatload of money. But the OP's question remains. Basically do what you can to stay insured so your record doesn't show an interruption. Lots of good ideas here.

I didn't bother with auto share (http://www.autoshare.com/) as I actually found it more convenient and cheaper to simply rent a car whenever I actually needed one. I rented several times while I was car-less, it allowed me to head out of town when required and my credit card had rental car insurance coverage on it. I don't like the idea of paying regular fees when my car use is unpredictable and intermittent. So carefully consider which option will work best in your particular situation.


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## carverman (Nov 8, 2010)

the-royal-mail said:


> *Be careful about an interruption in insurance coverage. When seeking car insurance, you are asked how many years of continuous coverage you have. If you still have the car with the basic fire & theft that should be sufficient to ensure continuous coverage. The point is not to cancel the policy.*


Another point is not to cancel the existing policy until it's replaced by another.

Having comprehensive coverage is ok, but some insurance companies balk
at even that. Because if you keep the plate sticker up to date, they will
say, what is there to stop you (or someone) from driving the vehicle on a short errand and having into an accident. 

I agree that if you want to continue with the current insurance rates (provided
you have no claims or tickets), you need to keep a policy in force.

In my case, I made a mistake of letting an agent talk me into not having
collision coverage last year on my 12 year old truck. This year, after
a close call, (blinded by the morning sun and frosted up windshield) I almost
ran into a school bus parked (not running) and sticking out quite a bit in the
road because of snowbanks. Had I hit it, the damage to my truck would have
been quite extensive, and without collision, there would be no way I could
afford to repair it these days..so it would be towed to the junk yard for very
little.

When I tried to get collision put on my existing policy, they told me I had to
have a mechanical and value assessment done...at my cost (over $100)
to get collision on..so I told them..no way, am I going to spend another $100
and then spend up to $100 for the collision premium, so I told them not
to renew my policy.

Now I'm getting quotes from 2-3 insurance providers and I will make a 
decision by the 25th, one month before my existing policy expires.


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## brad (May 22, 2009)

rikk said:


> And just to add ... from a boating forum, I've read that persons have cancelled their auto insurance since they're away at sea for a year or two. When they get back they're treated ... billed ... as new drivers, yikes, so best look into that.


Does anyone know the typical benefit, in terms of reduced premium, for an "experienced" versus a "new driver?" It would be worth knowing in order to calculate whether it's more advantageous to cancel auto insurance when you don't need it and resume later at new driver rates, or to keep paying premiums even if you're not driving in order to maintain your "experienced driver" status.

My hunch is that your rates are determined more by your age and sex (and your particular car's age and condition) than by your years of driving experience. Are we talking tens of dollars or hundreds of dollars in savings on your annual premium for being an "experienced" (aka "safe") driver?


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## Plugging Along (Jan 3, 2011)

brad said:


> Does anyone know the typical benefit, in terms of reduced premium, for an "experienced" versus a "new driver?" It would be worth knowing in order to calculate whether it's more advantageous to cancel auto insurance when you don't need it and resume later at new driver rates, or to keep paying premiums even if you're not driving in order to maintain your "experienced driver" status.
> 
> My hunch is that your rates are determined more by your age and sex (and your particular car's age and condition) than by your years of driving experience. Are we talking tens of dollars or hundreds of dollars in savings on your annual premium for being an "experienced" (aka "safe") driver?


There is actually a huge difference. It is a combination of the your age, gender, safety record, and then the number of continuous years. If you break the years, then you go back to your age and gender as a new driver. (this is a really simplified explaination). We're trying to figure out the best way to have our nanny who is older, but a new driver insured. It looks like we're better off to have her under our insurance for a few years before she gets her own car.


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## brad (May 22, 2009)

Plugging Along said:


> There is actually a huge difference. It is a combination of the your age, gender, safety record, and then the number of continuous years.


It's strange because I had a 25-year unblemished driving record when I moved to Canada 9 years ago (and no issues since then, knock on wood), but even though I had to start here as a "new driver" because I immigrated from the United States, my insurance premium wasn't dramatically higher than it was in the US where I was with the same insurance provider for 25 years. And that includes the effect of having moved from a rural state (Vermont) to a city (Montreal). It's not a true apples-to-apples comparison, of course, because I'm comparing insurance rates from a different country. Now that I've been here 9 years my insurance premiums are slightly lower than they were when I first moved here, but I assume that has more to do with the increased age of my car (and my own increased age) than my additional driving experience.


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## Guest (Mar 8, 2011)

brad said:


> Does anyone know the typical benefit, in terms of reduced premium, for an "experienced" versus a "new driver?" It would be worth knowing in order to calculate whether it's more advantageous to cancel auto insurance when you don't need it and resume later at new driver rates, or to keep paying premiums even if you're not driving in order to maintain your "experienced driver" status.
> QUOTE]
> 
> Just called my broker ... the days of losing experience points etc are gone. All that's required is that I maintain my Ontario Drivers Licence while I'm away ... when I get back I buy a vehicle and my rates resume as they were ... well, as if I hadn't gone. Any loyalty benefit e.g. 5% may be lost. Call your broker


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## carverman (Nov 8, 2010)

Plugging Along said:


> *There is actually a huge difference*. It is a combination of the your age, gender, safety record, and then the number of continuous years. If you break the years, then you go back to your age and gender as a new driver. (this is a really simplified explaination). We're trying to figure out the best way to have our nanny who is older, but a new driver insured. It looks like we're better off to have her under our insurance for a few years before she gets her own car.


*You can say that again.* I did an autoquote with CAA and for my age, sex,
years of driving experience (no tickets/no accidents) and retired with
less than 5000km per year on a old 1998 dodge dakota truck was 
$685 a year.

I went back and did the same quote changing only the insurance info..
ie: I said my insurance policy expired January 2010.

The new quote was $1933 per year...a difference of $1248 for an old
65 year old geezer like me..I would hate to be a 21 year old applying
with lapse insurance with a couple of tickets or an accident!


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## Addy (Mar 12, 2010)

I second zipcar (or in some cities, car co-ops like in Vancouver... we were a member for years and LOVED it!) if you have that option where you are.

In Manitoba, I know you can keep your car off the road and just have storage insurance on it, and insure it for driving as needed (even for just a few days if need be). Then in the summer you can insure it fully (ie from June 1st to October 1st or whatever you wish). This should save you some $.

Or, take your car off the road and just use taxi's if you can get away with it, or occasionally rent a car on weekends. I know in the winter here in the Peg I can rent a car for as low as $5/day, unlimted mileage, and my Travel Visa covers the cost of the insurance. Cheep cheep!


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## carverman (Nov 8, 2010)

Addy said:


> I second zipcar (or in some cities, car co-ops like in Vancouver... we were a member for years and LOVED it!) if you have that option where you are.
> 
> In Manitoba, I know you can keep your car off the road and just have storage insurance on it, and insure it for driving as needed (even for just a few days if need be). Then in the summer you can insure it fully (*ie from June 1st to October 1st or whatever you wish*). This should save you some $.


I guess it depends on what province you live in...you can't get 6 months
in Ontario AFAIK. I used to have a motorcycle and a few years back,
you could get a 6 month policy April 1st to Oct 1st, but that changed
and now you can only get a 12 month policy on motorcycles, even if
they are in storage for 6 months of the year. The MOT as well only
issue full year stickers. Everyone wants their money now.


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## HaroldCrump (Jun 10, 2009)

State Farm still issues 6 month policies.
They won't do 1 year, even if you ask.


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## frugalmini (Feb 19, 2011)

crazyjackcsa said:


> I'm confused are you paying more than $100 a year or a month?


Per month, , sorry.


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