Automotive

Insurance Broker says my insurance can't be reduced during the winter (car parked)

  • Last Updated:
  • Dec 27th, 2016 12:12 pm
[OP]
Sr. Member
User avatar
Dec 11, 2009
939 posts
518 upvotes
Toronto, ON

Insurance Broker says my insurance can't be reduced during the winter (car parked)

Hey,

We are 2 drivers and have 2 cars insured in the GTA. One of the cars I decided to park and lock inside the garage during the entire winter (no driving whatsoever) so I called the insurance broker to reduce coverage.
They informed me that Chieftain doesn't have an option to reduce coverage so I have to pay the same amount even tho I'm not driving the car. They also said that to change to any other insurance provider I would be paying more then the current excellent rate I have...
I asked if I could cancel insurance all together and she said I would need a letter from the financing institution.

It seems a little strange that I'm supposed to pay the same amount when the car is not being driven all winter.

Does this sound fishy? I'm about to start shopping for insurances again.
34 replies
Deal Expert
Feb 24, 2007
15087 posts
2678 upvotes
MoreDealsPlease wrote: That's how I got this insurance initially. I guess it's time to go over this process again as this could be substantial savings.
Insurance business in Ontario is a BIG joke.
Deal Fanatic
Apr 5, 2016
5780 posts
4194 upvotes
Calgary/Vancouver
There should be storage insurance for situations like this. I think the insurance company is just trying to get you to keep paying the same thing. I would shop around, chances are you may even get a better rate.
Deal Addict
Jan 20, 2005
3766 posts
363 upvotes
Thornhill
Fire and Theft is all you need for a parked vehicle. I do this with my TL every year, CAA Auto insurance allows for it.
Member
Jan 2, 2009
256 posts
101 upvotes
Toronto
mau108 wrote: Fire and Theft is all you need for a parked vehicle. I do this with my TL every year, CAA Auto insurance allows for it.
+1 I do the same thing with my summer car, which I have stored the entire winter. All you need is fire and theft insurance on a parked car.
Deal Fanatic
User avatar
Aug 11, 2008
9257 posts
1816 upvotes
Ontario
since Chieftain only offer month to month insurance, you can cancel the policy anytime. I used to have them in my office and I do believe the broker is correct, you have to carry full coverage when with them. Ask your broker to move this vehicle over to Dominion of Canada which is Chieftains parent company and then reduce to comprehensive only... if you can... (some companies require a minimum time on risk with full coverage before you can reduce to comp only)
MoreDealsPlease wrote: Hey,

We are 2 drivers and have 2 cars insured in the GTA. One of the cars I decided to park and lock inside the garage during the entire winter (no driving whatsoever) so I called the insurance broker to reduce coverage.
They informed me that Chieftain doesn't have an option to reduce coverage so I have to pay the same amount even tho I'm not driving the car. They also said that to change to any other insurance provider I would be paying more then the current excellent rate I have...
I asked if I could cancel insurance all together and she said I would need a letter from the financing institution.

It seems a little strange that I'm supposed to pay the same amount when the car is not being driven all winter.

Does this sound fishy? I'm about to start shopping for insurances again.
RIBO LICENCED INSURANCE BROKER, over 35 years experience
Deal Expert
Aug 2, 2001
17610 posts
8272 upvotes
I always put fire + theft on the cars I store.

However, is your car financed? If so there may be additional conditions through a lender that prevent removing coverage.


One alternative I have used on my new vehicle (not financed) is "suspended coverage" - this allowed me to keep my new vehicle depreciation waiver.
Deal Expert
Aug 22, 2011
37045 posts
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Center of Universe
TrevorK wrote: I always put fire + theft on the cars I store.

However, is your car financed? If so there may be additional conditions through a lender that prevent removing coverage.


One alternative I have used on my new vehicle (not financed) is "suspended coverage" - this allowed me to keep my new vehicle depreciation waiver.
+1, suspension of coverage also allows you to keep multi-vehicle discounts.
Deal Fanatic
Jul 26, 2007
6296 posts
3798 upvotes
Toronto
I parked or suspended a coverage on a car few times. For me, it needed to be minimum 45 days to suspend or they will charge back the full premium. Started it in both summer and winter times too.
Deal Addict
Sep 29, 2008
1328 posts
1381 upvotes
Toronto - Markham/Sc…
MoreDealsPlease wrote: Hey,

We are 2 drivers and have 2 cars insured in the GTA. One of the cars I decided to park and lock inside the garage during the entire winter (no driving whatsoever) so I called the insurance broker to reduce coverage.
They informed me that Chieftain doesn't have an option to reduce coverage so I have to pay the same amount even tho I'm not driving the car. They also said that to change to any other insurance provider I would be paying more then the current excellent rate I have...
I asked if I could cancel insurance all together and she said I would need a letter from the financing institution.

It seems a little strange that I'm supposed to pay the same amount when the car is not being driven all winter.
Does this sound fishy? I'm about to start shopping for insurances again.
Reading comprehension people.

If the car is financed, the lender requires full coverage on the vehicle for as long as it's financed.
It's not the big bad insurance company out to get you.
End of story.
Deal Expert
Aug 22, 2011
37045 posts
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Center of Universe
amkorp wrote: Reading comprehension people.

If the car is financed, the lender requires full coverage on the vehicle for as long as it's financed.
It's not the big bad insurance company out to get you.
End of story.
Show some facts!
Banned
Apr 5, 2013
5810 posts
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keenland
vkizzle wrote: Show some facts!
every vehicle i have ever financed and i currently have about 15, specifically states in the finance agreement on having full coverage including collision...this goes the same whether its in house(dealer) financing or 3rd party. both the same for lease and loan. Thats a fact and always has been.
Deal Expert
Aug 22, 2011
37045 posts
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Center of Universe
cardguy wrote: every vehicle i have ever financed and i currently have about 15, specifically states in the finance agreement on having full coverage including collision...this goes the same whether its in house(dealer) financing or 3rd party. both the same for lease and loan. Thats a fact and always has been.
Not doubing you, but I'm curious to see that in writing in the policy somewhere.
Banned
Apr 5, 2013
5810 posts
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keenland
vkizzle wrote: Not doubing you, but I'm curious to see that in writing in the policy somewhere.
dont really want to scan my agreements, but there is a paragraph that you sign off on about having full coverage and in turn, insurance company provides a certificate of insurance to the lender and that if policy is cancelled missed payment etc, the insurance company is obligated to inform the finance company at which point they can repo to protect their asset
Deal Fanatic
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Sep 8, 2007
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Way Out of GTA
Excellent timing on this thread. As I was for years on State Farm that allows me to switch to fire and theft while my summer cars are stored. At that point it ran me about $13 a month. Now with Certas who took over the policies they really don't allow for it such that the annual premiums for those two cars have risen by quite a lot. My State Farm agent says Certas don't allow it and it was a nice benefit that State Farm allowed for.

Other stupid things like not being able to put it on the road for a day to move it from one storage facility to another...State Farm was pretty accommodating with things like that. Certas? Nope..either you put the full insurance on or tow it.

So I will check with Dominion. Any others that people have found that still allow to switch to fire and theft. I'm going to shop my entire insurance portfolio as I might as well if there's a better package deal to be had.
Member
Aug 7, 2005
358 posts
20 upvotes
Newmarket
I am in the same situation, cannot switch to fire and theft... sucks..
Deal Addict
Sep 29, 2008
1328 posts
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Toronto - Markham/Sc…
vkizzle wrote: Not doubing you, but I'm curious to see that in writing in the policy somewhere.
First of all you are doubting me and the other poster based on your comment of "show facts please".

You really don't need to be curious. Every single lease and finance agreement has this clause in it. At the end of the day the car is the property of the finance company. As such they will want their property protected. This translates to full coverage on the vehicle as long as it's leased or financed.

I can tell by your lack of knowledge on this subject that you've never leased or financed a vehicle before? If you have then you haven't read your agreements fully and signed without doing so.
This is probably where you will chime in and say you make $200,000 year and buy all your cars full cash money on the spot.

Anyways, this is how it is when cars are leased or financed.

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