[Bescacho]

Hi,

I am currently financing my car with BMW financial with a couple years left. I won't be driving my car for the next 12 months (or longer) due to regular travels but would like to keep my car. As such, I was thinking of taking off the insurance on the car for the period I am travelling. I do have access to another car at home which is insured.

Would BMW financial or the law allow me to not have insurance on the car while I keep financing it?

Thanks in advance!

[JohnnyCanuck]

A condition of any financing contract on a vehicle is that it have insurance, even if it's not being driven. Why would BMW Financial want to take the risk that an uninsured vehicle gets stolen, vandalized, or damaged by fire/flood? Quite frankly, why would you?

There is an insurance product designed exactly for your situation called storage insurance.

[PepE92M3]

Just switch your insurance to comprehensive only & BMW Financial is allowing that.

[Bescacho]

Thanks guys. I will look into both storage and comprehensive only insurances.

Is there any particular insurance company good at these types of insurance? I am currently with CAA Insurance.

[PepE92M3]

I'm with TD and all auto insurance have that.

[Bescacho]

Thanks for the info

[lilez19]

Take all the coverages out .. Just keep comprehensive on it because you won't be driving it. In case it gets stolen, vandalized or anything like that it should be covered and that coverage is really cheap


I work for State Farm and we can do just comprehensive

[Bescacho]

Originally Posted by lilez19

Take all the coverages out .. Just keep comprehensive on it because you won't be driving it. In case it gets stolen, vandalized or anything like that it should be covered and that coverage is really cheap


I work for State Farm and we can do just comprehensive

Thank you and I might reach out to you if my insurance company doesn't give me a reasonable price

[lilez19]

Originally Posted by Bescacho

Thank you and I might reach out to you if my insurance company doesn't give me a reasonable price

Yeah no problem, just let me know , if you are in Texas ill be able to help you out, if not I can talk to another agent by your place

[JohnnyCanuck]

A word of caution, taking advice from a State Farm employee in the US about Canadian insurance is risky (no offence lilez19).

In BC, for example, you cannot buy stand alone comprehensive. You must have basic insurance ($200K liability, accident benefits) to purchase comprehensive. Storage insurance was the only product that would give you comprehensive coverage on a stored vehicle.

Given the minimum liability rules in all jurisdictions in Canada, I would be surprised if Ontario was any different. That said, I never worked in Ontario when I was in the industry (10 years as a claims adjuster/examiner/manager) so I won't guarantee that, but I can say that Texas and Ontario would run different auto insurance regimes.

[lilez19]

Originally Posted by JohnnyCanuck

A word of caution, taking advice from a State Farm employee in the US about Canadian insurance is risky (no offence lilez19).

In BC, for example, you cannot buy stand alone comprehensive. You must have basic insurance ($200K liability, accident benefits) to purchase comprehensive. Storage insurance was the only product that would give you comprehensive coverage on a stored vehicle.

Given the minimum liability rules in all jurisdictions in Canada, I would be surprised if Ontario was any different. That said, I never worked in Ontario when I was in the industry (10 years as a claims adjuster/examiner/manager) so I won't guarantee that, but I can say that Texas and Ontario would run different auto insurance regimes.

ah well yeah different law, i didnt notice that he was living in Canada lol ,sorry. but yeah you are correct

[cokelon]

Originally Posted by JohnnyCanuck

A word of caution, taking advice from a State Farm employee in the US about Canadian insurance is risky (no offence lilez19).

In BC, for example, you cannot buy stand alone comprehensive. You must have basic insurance ($200K liability, accident benefits) to purchase comprehensive. Storage insurance was the only product that would give you comprehensive coverage on a stored vehicle.

Given the minimum liability rules in all jurisdictions in Canada, I would be surprised if Ontario was any different. That said, I never worked in Ontario when I was in the industry (10 years as a claims adjuster/examiner/manager) so I won't guarantee that, but I can say that Texas and Ontario would run different auto insurance regimes.

And in Ontario if I'm not mistaken if you are financing a vehicle you are required to have full insurance for it. The only way that you can reduce your cost is when they ask you for the amount of km's driven each day or per month you give them like 100 you get a break. Other than that you need to have full coverage.

That's last I heard 2 years ago when I had a newer car and I was driving my winter beater I was still paying full cov but less because I wasn't driving it. The won't do comprehensive because in an emergency you take your car out you crash it yes sure the insurance will pay the other persons vehicle and you will be questioned up the ying yang why you were driving the other car when you said you wouldn't. So now you are stuck paying a damaged car financing and insurance. I'm with TD too

[Zebra99]

Originally Posted by Bescacho

Hi,

I am currently financing my car with BMW financial with a couple years left. I won't be driving my car for the next 12 months (or longer) due to regular travels but would like to keep my car. As such, I was thinking of taking off the insurance on the car for the period I am travelling. I do have access to another car at home which is insured.

Would BMW financial or the law allow me to not have insurance on the car while I keep financing it?

Thanks in advance!

OP, stay with CAA and request coverage reduction to fire/theft (comprehensive). It'll keep your current policy intact and you shouldn't be paying more than $20-30/month.

Ontario does not require you to have minimum insurance on any vehicle that is parked while registered to you (as long as you don't try to drive) However, when being financed (lien holder exists), you are required to have full coverage up until you park it. When parked, the lien holder will allow a reduction to comprehensive assuming you are parked and not driving. Keep in mind most insurers have a limit on the period that allows a car to be "parked".

If you have any further questions, don't hesitate to ask

[Bescacho]

Originally Posted by Zebra99

OP, stay with CAA and request coverage reduction to fire/theft (comprehensive). It'll keep your current policy intact and you shouldn't be paying more than $20-30/month.

Ontario does not require you to have minimum insurance on any vehicle that is parked while registered to you (as long as you don't try to drive) However, when being financed (lien holder exists), you are required to have full coverage up until you park it. When parked, the lien holder will allow a reduction to comprehensive assuming you are parked and not driving. Keep in mind most insurers have a limit on the period that allows a car to be "parked".

If you have any further questions, don't hesitate to ask

Hi all, thanks a lot for the replies! I thought no one would chime in anymore after the first few replies so I didn't come back to check...

Anyway, I am with CAA and the rep told me that I could get COMPREHENSIVE only but CAA would require a written letter from the financial company (i.e. BMW Financial) granting approval of the car being under comprehensive coverage only. As the replies mentioned, I can't drive the car until I put back on full coverage.

Although there is no limit on the number of times switching b/n full coverage and comprehensive only, however, CAA requires the policy holder to stay with either coverage for at least 60 days. In other words, I can't switch b/n policy until 60 days later after switching.

The cost of comprehensive coverage only comes to ~C$24/month with CAA.