Do you need to insure a car, motorcycle, or RV in storage?

Updated on June 25, 2026 | Originally written: July 11, 2019

Yes—usually you still need insurance, even if your vehicle is sitting in storage.

The real question isn’t whether you need coverage while your car sits idle—it’s what kind of insurance is most appropriate, which protections you can safely drop, and what are provincial legal requirements for stored vehicles.

Many Canadians assume a parked vehicle doesn’t need insurance or isn’t exposed to risk. In reality, a stored car, motorcycle, or RV can still be damaged by hail, fire, theft, vandalism, or even a burst pipe in a storage facility. 'Storage insurance' typically involves a switch to comprehensive-only coverage, which protects against non-driving damage while lowering your premiums.

Stored vehicle insurance checklist: what to confirm first  

Before you call your insurer, run through this checklist:

1. Is the vehicle still registered? In most provinces, a registered vehicle legally requires at least some insurance coverage, even if it never moves.
2. Is it stored on public or private property? A vehicle parked on a public road typically carries liability obligations, which aren’t required for a car locked in a private garage.  
3. Do you have a lender or lease agreement? The vehicle owner may have the final say on insurance coverage—and it's often stricter than provincial minimums.  

Read more: What happens if my car floods in underground parking?

What is storage insurance?

Storage insurance generally means reducing your policy to comprehensive-only coverage. You can drop collision, liability, and accident benefits (optional from July 1 in Ontario), while retaining protection of a parked vehicle against non-driving risks.

• Comprehensive covers: Fire, theft, vandalism, hail, falling objects (think tree branches or ice), flooding, and windstorm damage.
• Comprehensive does not cover: Collision damage while parked (someone backing into your car, for instance), mechanical breakdown, or rodent damage—a surprisingly common storage-season claim that most policies explicitly exclude.

One thing worth knowing: Home insurance doesn’t include a vehicle in storage, unless you've added a specific endorsement to your home policy. Your auto coverage is what protects a parked vehicle.

Learn more: What is seasonal car insurance? 

Do storage insurance rules differ by province?  

Canadian provinces with public insurers work differently from systems with private markets. Key differences are:

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Related: What is an auto insurance grace period?

What's the difference in storage insurance for cars, motorcycles, and RVs?

Cars (including classics and vintage vehicles)

For a standard car or a collector vehicle stored through winter, dropping to comprehensive-only is the most common and straightforward approach. The main risk is the ‘lapse problem’ discussed below. Classic car owners in particular should verify their agreed-value policy terms—some specialty policies have storage clauses already built in.

Motorcycles

Motorcycle insurance in Canada works differently from auto insurance. Most policies are structured on a seasonal rating model: premiums are higher during active riding months and lower when the bike is typically off the roads during winter. You're paying year-round, but the cost already accounts for off-season storage. Cancelling your policy during winter to save money doesn't make sense under this framework. You risk losing a storage-season rate benefit and risk a coverage gap.

Recreational vehicles (RV)

RV insurance is more complex because the vehicle category itself is broad. A self-propelled motorhome (Class A, B, or C) is treated like any motor vehicle and requires full auto insurance on the road.  

A towed trailer has different liability requirements. The towing vehicle's policy often covers some liability for the trailer, but the trailer itself needs physical damage coverage separately. Tent trailers and pop-up campers sit at the lower end of the premium range, typically requiring comprehensive and liability coverage.

For all RV types, many insurers offer storage discounts during off-season, and some will bundle RV and auto policies for additional savings. If your RV is in a commercial storage facility, ask your insurer specifically whether that location type affects your coverage terms—it sometimes does.

Read more: Do you need gap insurance for your new vehicle?

Will cancelling stored car insurance cost more?

In the long run, yes. You can cancel insurance for four months to save on premiums. But when you reinstate the policy, your insurer records your gap in coverage history and reclassifies your risk profile higher. Your premiums could rise for the next one to three years.  

Short-term savings can be eroded by long-term rate increases.

Beyond the financial impact, there are legal implications. Driving an uninsured vehicle in Ontario can result in fines up to $50,000, licence suspension, and vehicle impoundment.

Recommendation: Reduce coverage when your vehicle is unused, don't cancel it. Keep comprehensive at a minimum. Your insurance history stays continuous, your vehicle is protected, and reinstating to full coverage is a single call rather than a new application with a coverage gap on your record.

Can I reduce insurance on a financed or leased vehicle in storage?

If you're still making payments on a vehicle, you may not have the legal right to reduce your insurance below what your lender requires, regardless of what provincial rules allow.

Most financing and lease agreements include a clause requiring the borrower to maintain full insurance coverage—liability, collision, and comprehensive—for the entire term of the agreement. Dropping to comprehensive-only storage coverage could technically put you in breach of contract. In extreme circumstances, lenders can call the loan or repossess the vehicle if you breach terms of the agreement.

Before you make any changes to insurance on a financed or leased vehicle, read your financing agreement first. Call your lender and ask whether they allow a storage policy and reduced coverage. Always get a written confirmation of policy changes your lender permits.

Learn more: Does car insurance cost more if you lease your vehicle?

How do I put a vehicle into storage insurance, step by step?

1. Read your financing agreement (if applicable) before anything else. Confirm whether you're allowed to reduce coverage.
2. Check your policy renewal date. Some insurers charge mid-term adjustment fees. Making policy changes at renewal often costs less.
3. Call your insurer or broker and ask specifically whether they offer storage or lay-up coverage options. If yours doesn't, this is worth shopping around for.
4. Confirm what you’ve dropped and retained. Get a written confirmation of coverage adjustments and your updated premium.
5. Pay attention to provincial requirements. If you're in Ontario and use OPCF 16, remember to surrender your plates. In Quebec, notify the SAAQ for seasonal vehicles.
6. Plan ahead for your coverage reinstatement. Ontario recommends contacting your insurer two to three weeks before you plan to drive again and reinstate coverage you dropped during storage. Don't wait until the morning you want to take the car out.
7. A stored vehicle isn’t risk free. It faces a different set of risks. The right insurance coverage can protect your vehicle for a fraction of what you'd pay for driving year-round.

Read next: Moving abroad? Here’s how car insurance works