Should I take one of my cars off the road to save on insurance?

Published On: April 2nd, 2020Categories: Personal Insurance

We are in an unprecedented time in our modern era. There are fewer cars on the road across Ontario and our nation. As many individuals and families find themselves in uncertain economic situations, we are all looking at ways to save money on insurance.

With most things in life, if you are saving money in one place, there is a trade of value in another — something else that may be equal or more important than the associated savings.

As your insurance broker, we know it is important to provide knowledge, perspective and advice. Over the next bit of time, we will review common and less common ways to save money on your insurance and provide the method, benefit and potential trade-off.

Before jumping into any decision, it is important to weigh the benefit against the potential cost.

Today, let’s look at the potential benefit and costs that come with taking one of your cars off the road.

You may look out your front window and see two cars sitting there. One is the primary family commuter and the other the primary work commuter. Where they were both being used daily, now only one is being used every few days. You may be thinking… we can get by with one car for a while.

Is suspending insurance on a vehicle the right option to help you save?

Let’s look together.

If you choose to temporarily suspend insurance on one of your vehicles, you would have to park the vehicle and not drive it. Driving an uninsured vehicle is illegal in Ontario.

The benefit of this is obviously that you would be entitled to certain premium savings while the insurance is temporarily suspended on that vehicle.

But what are the potential drawbacks of temporarily suspending insurance on a vehicle?

  • Most companies require that you suspend the insurance for a minimum of 45 days. They do this to avoid people reinstating insurance when they need it and suspending again when they don’t. So, if things change or a situation arises where two vehicles are required, you will not be able to drive the vehicle with the suspended insurance.
  • In addition to the term of suspending insurance, insurance companies apply the credit to the account at the end of the suspension period. While this may net you an overall savings, it will not necessarily help cashflow in the short-term.
  • Most insurance companies offer robust multi-vehicle savings discounts. If you suspend insurance, you will also be potentially suspending the multi-vehicle discount. When you apply this discount to your overall insurance, you may find that you would be netting only a minor monthly savings from your current monthly premium.
  • If you have a clean driving record built up for a number of years, you may have a nice disappearing deductible amount on your policy (if you do not make a claim, your insurance company may be reducing your deductible as an acknowledgement for being a safe driver). By suspending insurance on the vehicle with a disappearing deductible, you may be putting that benefit at risk.
  • Finally, if you lease or finance a vehicle you may need to request permission and a letter from the lease/finance company before being able to proceed (even if requesting to remove collision coverage).

It’s complicated

What is the right decision for you? Unfortunately, there is no one best solution. Every person and family has a unique combination of things being insured, coverage amounts, policy features and more. To find the best solution for you and your situation, we recommend discussing your needs with one of our personal insurance professionals. We are happy to consult and seek the best outcome for you.

If you are a client already, please reach out to your dedicated Account Manager to discuss.

If you are new to Bryson, we would love to talk with you. Send us an email at to get started.

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