With the spring semester wrapping up at universities across British Columbia, many students are preparing to head home for the summer. Whether you are flying back to your home country or just heading to another province for four months, you’re likely looking for ways to trim your monthly expenses while your car sits idle.
It is a question we’re sometimes asked: “If I’m not using my car, can I just stop paying my insurance and start it up again in September?”
We understand the desire to save money, but in the world of BC auto insurance, “simply stopping” is a move that can lead to impound lots, lawsuits, and long-term financial headaches. Here is why you should never just “cancel” your ICBC policy, and the smarter, cheaper alternative that protects your car while you’re away.
The “Public Property” Trap: Why You Must Keep Your Insurance Policy
The biggest mistake many renters and students make is assuming that because a car isn’t moving, it doesn’t need to be “street legal.” In British Columbia, the law is very clear: if your vehicle is parked on a public road, it must have valid basic insurance and display a current decal (though physical decals are being phased out, the digital record must be active).
If you cancel your insurance and leave your car parked on a Vancouver street or in a public cul-de-sac:
- The City Can Tow It: An uninsured vehicle on a public road is considered “abandoned” or an “illegal obstruction.”
- The Impound Fees: By the time you return from your four-month summer break, your car will likely have been towed. Impound fees in the Lower Mainland can easily exceed $30 a day, plus the initial towing fee. For example, four months in an impound lot would cost you over $3,600—far more than the insurance you were trying to save.
The Danger of a “Lapsed” Record and Your Insurance History
When you “just stop paying,” you aren’t just cancelling a service; you are creating a “gap” in your insurance history.
Insurance companies, including ICBC, look at continuous ownership and coverage as a sign of a reliable, low-risk driver. If you have a four-month gap where you simply disappeared from the system, it can negatively impact your driving record and future premiums. Furthermore, if you are on a monthly payment plan and you simply stop the payments without formally notifying ICBC, you could be flagged for “non-payment,” which makes it much harder (and more expensive) to get insured when you return.
The Solution: ICBC and the APV345 Storage Policy
Instead of cancelling your policy entirely, the savvy move is to switch to APV345 – Storage Policy.
This is a specialized type of insurance for vehicles that are being kept off the road. It is significantly cheaper than your standard Autoplan because it pauses optional coverages like Collision and removes the Liability risks associated with active driving. This keeps the value of your car protected against risks that are beyond your control while you are away.
What Storage Insurance Covers:
- Theft: If your car is stolen while you are away.
- Vandalism: If someone smashes your windows or tags the car with graffiti.
- Fire and Weather: If a fire breaks out in your parkade or a heavy summer storm knocks a tree limb onto your windshield.
The “Private Property” Requirement
There is one major catch with a storage policy: The car must be parked on private property. This means a private driveway, a garage, or a designated spot in a secure underground parkade.
If you have a storage policy but leave the car on the street, your insurance is void. If another driver hits your car while it’s on the street with only storage insurance, you cannot make a claim for damages. Additionally, since the car isn’t meant to be driven, you don’t need to worry about an occasional driver or unlisted drivers, as the vehicle must remain stationary to stay protected.
Why You Need Liability and Valid Insurance Documents
You might think, “If my car is in a private garage, it can’t hurt anyone, so why do I need insurance?” Insurance isn’t just about what you do; it’s about what the car does. Imagine your car is parked in a shared underground parkade in a Burnaby condo. While you are in your home country, an electrical short occurs in your car’s wiring, sparking a fire that damages three neighboring luxury vehicles and the building’s sprinkler system.
Without a valid insurance policy, you are the person responsible for those damages. In a strata building, a small fire can easily lead to a $500,000 restoration bill. Keeping a storage policy ensures you have “Comprehensive” protection that keeps your family and your life savings safe from these “freak accidents.”
Managing the Auto Insurance Switch with King Insurance
The best part about switching to storage insurance is that it maintains your relationship with ICBC. You remain “in the system,” your discounts stay protected as the owners of the vehicle, and you don’t have to worry about re-applying for a brand-new policy when the school year starts in September.
How to do it:
- Find Private Parking: Secure a spot in a friend’s garage or keep it in your building’s stall.
- Contact your Autoplan Broker: Don’t just let the policy expire! Talk to us before you head to the airport.
- Set a Reminder: Remember that storage insurance has an expiry date. Make sure your policy covers the entire duration of your trip.
Final Thoughts: Save Money the Right Way
It is absolutely okay to want to save money during the summer break, and for most students, switching to storage insurance is a brilliant move. It provides peace of mind for the price of a few cups of coffee a month, ensuring that when you land back at YVR in September, your car is exactly where you left it—and still fully protected.
Heading home for the summer? Don’t risk a “lapsed” policy or a towed vehicle. Contact King Insurance today or use our ICBC Renewal Portal to switch your vehicle to a storage policy. We’ll help you save money while keeping your car safe.
About King Insurance
Located at the northwest corner of Marine Drive and Main Street, King Insurance proudly serves not only the South Vancouver communities of Marpole, Sunset, Oakridge, Victoria–Fraserview, and nearby areas like Marine Gateway and Marine Landing, but also clients across Richmond and the entire Lower Mainland.
Ka Hing Cheung is proud to work in the insurance industry, helping people manage risk and protect what matters most. Ka Hing is committed to ongoing learning and enjoys helping clients find the right coverage at the best available rate, while making sure they understand their options clearly.