Can I get temporary car insurance in Ontario?

Short-term or temporary car insurance generally means a policy that provides coverage for less than 12 months. Standard auto policies in Ontario offer a minimum of 12 months of coverage, so you might be thinking about getting temporary car insurance because you want coverage for a shorter time period than this 12-month minimum (for example, you might be putting your car in storage for several months each year while you travel, or you have a car, like a convertible, that you plan to only drive in the summer).

No, you won't be able to get car insurance for a policy term of less than 12 months in Ontario—but there are a number of alternative options that might help you meet your short-term coverage needs. For example, if you already have insurance for your car, suspending your existing coverage could be a suitable option.

While suspension of coverage isn't the same thing as a temporary insurance policy (and it won't be perfect for every situation), it's an option that can help save you money if you won't be driving your car for a while. 

Suspension of coverage means pausing the parts of your policy related to the use and operation of your vehicle. To suspend your coverage, speak to your insurer. They can tell you more about the process—including what to do when you want to reinstate your coverage—and get everything set up for you. 

When you suspend your coverage, you'll lose the coverage you had for any loss or damage related to driving your vehicle, but you'll still have coverage for non-driving loss or damage. 

Here are some examples of the coverage you'll keep if you suspend your coverage: 

• If your car is parked on a hill on private property and it rolls down that hill, causing damage to another person or their property, you'd still be covered under the liability provisions of your policy. 
• If you get into an accident while driving a borrowed car, you'd still have liability coverage. 
• If you're out for a walk and get hit by a car, you'll still be covered for accident benefits under your policy.
• If you have comprehensive coverage, you'd still be covered for things like theft, vandalism, and fire, as long as your car is parked or stored when these events happen.

Suspending your coverage can be a good option because, unlike cancelling your policy, your insurance history won't show any gaps in coverage. Insurers often see gaps as indicating a higher risk, so even a short lapse in coverage could mean higher premiums when you purchase a new policy.  

The following table provides a quick summary of the pros and cons of suspending your coverage: 

Yes, in addition to suspension of coverage, there are other options that might help you meet your short-term car insurance coverage needs.

If you won't be driving your car for a while, you may be tempted to cancel your car insurance for now, and simply purchase a new policy when you're driving again. But there are several downsides to cancelling. These include:

• Vehicle registration. In Ontario, you can't renew your registration without valid insurance. (For seasonal vehicles, however, you're allowed to remove coverage for driving-related loss and damage for the periods when your vehicle is in storage,1 so you can opt for suspension of coverage during storage periods and still be eligible to renew your registration.)
• Cancellation fee. If you'll be cancelling midway through the term of your policy, you'll likely have to pay a fee for cancelling early. 
• Bundling discount. If you're getting a bundling discount for having both your car and your home insurance policy with the same insurer, you'll probably lose that discount if you cancel your car policy. 
• Higher premiums. As  discussed above, you'll have a gap in coverage in your insurance history, and this could affect the cost of your premiums when you're ready to purchase a new car insurance policy.

Most insurers in Ontario require that other licensed drivers in a policyowner's household who don't have a vehicle with active insurance of their own must be registered as occasional drivers on the policyowner's policy, so if you're living in the household of the person whose car you'll be driving, their insurer will most likely require you to be added as an occasional driver. But even if you don't live in their household, if you'll be driving someone else's car regularly (for example, while your coverage is suspended) you should be added to their car insurance policy as an occasional driver. Keep in mind, adding an occasional driver to a policy could  increase the premium.  Read more about adding an occasional driver to a policy.

If you already have an insurance policy for a vehicle you own, but you'll also be frequently driving cars you don't own (for example, if you're planning to use rental cars or a car-sharing service regularly), you might want to consider adding non-owner car insurance coverage to your existing policy. This add-on coverage will provide you (the policyowner) with liability coverage if you get into an at-fault accident while driving a car you don't own. 

Note that, in Ontario, non-owner coverage is only available as an add-on to an existing car insurance policy, so you won't be able to purchase this type of coverage as a standalone policy. To learn more, read our guide to non-owner car insurance.

If you rent a rental car, you'll be able to purchase coverage from the car rental company. Most rental companies have a range of options, so you can get the coverage that will best fit your needs. Check out our FAQ for answers to common questions about rental cars and insurance. 

If you'll be keeping your car parked or stored on private property (and it won't be driven at all, whether by you or by another driver) and you've purchased comprehensive coverage on your policy, you could reduce your coverage to comprehensive coverage only. This means you'll continue to be covered for things like theft, vandalism, and fire.  

This isn't a recommended option, though, as there's a major downside to reducing your coverage to comp only. While you'll be able to save on your premium, you won't have liability coverage or accident benefits coverage for loss or damage not related to driving your vehicle, the way you would if you opted for suspension of coverage instead. 

In Ontario, you can't purchase temporary car insurance, or car insurance policies for less than a minimum 12-month term, but talk to your insurer about alternative options, such as suspending your coverage, that might work to meet your short-term coverage needs.  

Get a quick quote online, or talk to a licenced TD Insurance advisor about coverage that's customized to meet your needs.