Kanetix Forum

Last year I let my insurance lapse as my car was off the road. This year I would like to make repairs and get it operating. CAA says they want 8000+ annually to reinstate the policy, which is more than the value of the vehicle. What options do I have?



Also is there an insurance option to cover it while it goes for repairs?

Hi,

Cancelling or lapsing your policy on renewal is not a ratable lapse. To have your rate go up drastically just because you were not driving your vehicle would be uncommon unless you let the policy cancel for non-payment by not paying for the renewing, as opposed to cancelling the policy by signing off. You should check with CAA as to why the increase is so large, other factors are likely at play as well to be paying $8000 annually.

If you are paying more premium than the vehicle is worth you may want to consider dropping coverage like collision and comprehensive coverage in order to save money, in effect you would be self insuring the vehicle for any damage that occurs. The remainder of your premium would go mostly to cover you for any liability or injuries arising out of claims.

Continued>

If you are bringing the vehicle in for repairs the garage should have an insurance policy in place which covers them for liability for items in their care, custody or control. I would be more concerned with how you would be covered getting your vehicle to the shop. I would recommend a tow as opposed to driving without insurance.

Sean Graham, Principal Broker at KTX Insurance Brokers