Short-term car insurance (Ontario)?

[NDman]

I've been insured by Meloche Monnex for a few years now. My policy is due to expire soon and I need to find a company that has short-term policy (on a monthly basis is even better!). I'll be moving out of the country to work for 1 year at the end of this year so I'll only need it for another month and a bit, likely 2.

TD only has 1-year term, unfortunately. And there's a penalty for breaking the contract, naturally. I've called PC Financial Insurance, and Belair Direct. Both have 1-year term. Does any of you know of any company that has 6-, or even 3-month term policy? At the end I might just have to stick with TD and pay the penalty and still be cheaper since they are giving me really good rates. Company names will be greatly appreciated so that I can get a quote. Thanks

[Jay1234]

You might want to concider keeping some insurance for the year that you are out of the country or the insurance company might treat you like a new driver/insuree when you return.

[ratface]

There are still a few companies that offer 6-month terms but that won't help you. You would still have to break the contract early and will be refunded 56% of your 6-month premium. That's exactly equivalent to the 78% refund you will get if you cancel a 12-month policy after 2 months. I've never heard of a company offering 3-month terms.

The cancellation fee is intended to cover the startup cost of issuing a new policy. But if you have been with the company for more than a year, you could ask them if they will cancel your policy 'pro rata'. Then you will pay for exactly the amount of coverage that you used.

Failing this, you could call and ask them to remove all your coverages except theft - tell them you won't be driving for a 'while'. They will refund all your other coverages pro rata. Then call back a few days later and cancel the policy. You will only pay the short rate cancellation fee on the the theft coverage.

ETA: If you aren't selling the car and are just storing it for a year, then you actually should leave the theft coverage on. In that case, you will get a full refund of the rest of you policy. No need to switch... simple.

[NDman]

Thanks for the suggestion. I'm still weighing my options but I'm leaning towards selling the car so at this stage I'm looking more towards the short-term policy direction. The switch to minimum coverage first is a very interesting idea that I have to take a good look on. Thanks again