If you’re one of the thousands of Alberta residents who use a vehicle seasonally (think convertible), there are some special insurance considerations you need to make. Whether you have a vintage vehicle that you only drive during the summer or a winter-beater that you only use in the slush and show, why cover your car when it’s not in use? Many people don’t realize that in Alberta you can have a gap in coverage of up to two years without penalty.
The Facts About Suspending Your Insurance
Although it’s perfectly fine to suspend your coverage, put your car up on blocks and forget about it for two years, there is one small caveat. It’s possible that your premiums may rise slightly when re-upping your insurance, as premiums are calculated over the lifetime of a policy. Everyone knows that the longer you are covered and claims-free, the less you should need to pay overall.
The next easiest and best thing to do if you’re not going to be driving a particular vehicle for an extended period of time is contact your insurance provider and make changes to the policy that covers the vehicle. Remove all extras and optional forms of coverage on the policy, and take it down to its bare minimum. This will reduce your premiums to the lowest possible level without interrupting your coverage.
If you do decide to cancel your insurance coverage on a vehicle, the best way to do it is to wait for the policy to come up for renewal, then opt out of it. To learn more about the renewal process, please check out our previously published article on the topic.
The Cancellation Process
In some rare cases, cancelling a policy entirely is the only viable option. Should you decide to go this route without waiting for renewal time, be aware that you may face fees and penalties for the early termination of the policy. These fees can be costly, so your first step should be to find out how much they are and do the necessary calculations to ensure it still makes financial sense.
If you elect to proceed, here are the basic steps you will follow:
- Contact your insurer and explain that you wish to cancel your policy
- Provide written documentation confirming your choice to cancel your current coverage
- Specify the date on which you want your coverage to end
- Make any necessary final payments
- If you’ve prepaid for an annual policy, you may be entitled to a refund for the difference
You should also make sure to get a proof of insurance statement from your provider. This will be a very helpful thing to have in your corner when you decide to reinstate your coverage, as it will prevent insurers from interpreting the lost coverage dates as a gap in your coverage. Gaps often lead to higher premiums, as they place you in a higher risk category.
Car Insurance Calgary: Get the Lane’s Insurance Team Working for You
Lane’s Insurance has some of the top car insurance brokers in Calgary on its team, and the professionals at Lane’s always work to protect your best interests. Remember: brokers work for you, not for the insurance companies, so you’re always assured that you’ll get the products that best meet your needs at the most competitive possible rates.
The car insurance products available at Lane’s include multiple options from Alberta’s top carriers. To learn more about car insurance in Calgary, please consult Lane’s extensive library of resources and downloadable PDFs.