Understanding Insurance Credit for Vehicle Storage
Article revised on 15 September 2017
It’s time to store seasonal vehicles or take them out of storage. Here are a few facts about each of the vehicles to help you better understand what goes on with your insurance during the storage period.
Automobile and motorhome
Coverage will be suspended and the storage credit granted for a car or motorhome will be calculated accordingly In other words, even if a car was stored for three months, or 25% of the year, the credit amount will not be 25% of the total premium.
Why? Because Comprehensive or Various Perils coverage, including coverage for theft, remains active during the storage period.
Furthermore, the credit is only granted when you put your vehicle back on the road. This way you’re guaranteed the coverage corresponds to its actual use.
New for La Capitale clients: you can now indicate that you wish to store your car or motorhome online, through the Client Centre.
La Capitale is one of the only insurers in Quebec to offer credit for storing a motorhome. However, if you park your motorhome and live in it for a period of time, you are not eligible for storage credit during that period. This would apply, for example, if you spent a few days or a few weeks in Florida during winter.
However, if you travel to Mexico, you could on returning home, provide your insurer with proof of insurance that you took out while there. Your insurer can refund you an amount corresponding to the portion of your insurance left unused. In fact, foreign insurers are not recognized in Mexico and you’ll have to take out local insurance during your stay.
Motorcycle, snowmobile, ATV, boat and sea-doo
There is no storage credit granted for these vehicles in which the premium is calculated taking seasonal use into account. The cost is then spread out over the entire year. This way you don’t need to cancel your insurance in the spring and reinstate it in the fall! You can go out for a ride anytime during the time permitted by law without worrying about your insurance.
If you would like to suspend your coverage during the storage period, you should know that you are in fact cancelling your insurance coverage.
It’s important to keep your insurance active year-round. If the building in which your vehicle is stored catches fire or collapses from the weight of snow or due to water seepage, your leisure vehicle insurance will cover the damages, and not your home insurance.
If you own a small vessel, certain coverages are included in your home insurance contract.
*The content of this site has been created for informational purposes only and has no contractual value. The content is a general overview of the services available at La Capitale Financial Group. Financial and insurance services might vary by region and accordingly with provincial regulations. For more details, please contact your La Capitale Financial Group regional representative today.
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