I live in Montreal, QC, Canada and I have little use for my car. I'd like to save money by getting rid of it and the expensive insurance.

I've heard gaps in insurance history will lead to higher rates if I get a car again. [IMO this should be illegal, but big insurance]

So, should I have my mom add me as a secondary on her car if I plan to get a car again in 2 years? What about 5 years?

This seems like a pure optimization problem, but I don't know enough about the effects of not having insurance to calculate it.

  • Age? What kind of car do you plan to buy in two or five years? What kind of insurance will you get? All those things affect insurance rates and therefore the optimization. How much does it cost to put you on your mother's insurance? You also may want to consider a car sharing service, like ZipCar, to maintain insurance. – Brythan Nov 21 '17 at 18:24
  • Wouldn't it all be equivilent? Like if I wanted a fancy car or a cheap car, the difference in insurance for keeping or not keeping my insurance would be the same. – Jason McCarrell Nov 21 '17 at 20:32

Here's an example (US, not Canada) that shows up to a 30% increase for first 6 months after a >30 day lapse, but the best data will come from actual quotes from insurers. If you can do without driving for 2 years it's almost certainly worth dropping coverage and a car for that duration and paying an increased insurance rate for a spell after the lapse.

I'm not sure how it works in Canada, but when living with my parents they could not exclude me from their insurance once I was a licensed driver. The insurance company considered me to have access to all vehicles, so my presence increased insurance rates. If you live with your mother, you'll have to check with your insurer to see how that works.

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