Does having your vehicle impounded affect car insurance?

Having your car impounded can be a real hassle, especially if you rely on it for work or other important reasons. There are several reasons why you may find yourself with an impounded car, also known as a vehicle seizure. If this happens, you’re probably wondering how impounded vehicles could affect your car insurance, what it all means, and how to get your vehicle back on the road. Let’s take a closer look.

How impounding affects your car insurance premium

Does having your car impounded affect your car insurance premium? Yes, having an impounded vehicle can lead to an increase in your car insurance rates. While the impoundment itself might not directly cause your premium to go up, the reasons behind it can affect your coverage costs in several ways:

Traffic violations

Impoundments often result from serious traffic offences like driving under the influence (DUI), excessive speeding, speeding in construction zones, driving while under suspension, or driving without insurance. Once your insurer learns about these violations, they may label you as high-risk, leading to higher premiums.

Licence suspension

If your licence is suspended due to an impoundment-related offence, this signals to your insurer that you're a high-risk driver, which can also increase your rates. If you have too many of these charges, you may be required to pay more for your auto insurance due to fewer options for insurance companies willing to insure you.

Loss of coverage

In some cases, your insurance provider might cancel your policy if they find out your car was impounded for serious violations. You may then have to find a high-risk insurance provider, which tends to be more expensive.

How much your premiums increase depends on your policy, insurer, and location. If you're worried about how an impoundment might impact your insurance, it's a good idea to reach out to your broker to discuss your situation and any potential premium changes.

Does car insurance cover my impounded car fees?

Generally, no. Typically, when your car is impounded, it's due to something like committing a criminal traffic violation, getting arrested, driving under the influence, or unpaid parking tickets—none of which your car insurance covers.

However, occasionally, a vehicle may be towed and impounded after a car accident for reasons like it is blocking the road. In this situation, if you have collision coverage, it may cover your towing fees. If you've been in an accident and your vehicle was towed to a lot, be sure to contact your insurance company immediately to let them know. They may arrange to have it moved somewhere else with lower fees. As always, it's best to ask your insurance company or broker to find out what kind of towing coverage you have.

Do I need car insurance to get my vehicle out of impound?

Yes. In Canada, in order to get your car out of impoundment, you must have valid car insurance. This is because it's illegal to drive the car out of the impoundment lot without insurance.

Valid car insurance across Canada includes a variation of third-party liability, accident benefits, uninsured motorist, and direct compensation-property damage coverage. It also commonly includes optional collision and comprehensive coverage.

What is vehicle impoundment?

Your vehicle can be impounded if you break certain laws, like driving without insurance, various traffic violations, or using the car in a crime. When that happens, it means the government or law enforcement takes possession of it. This can happen to all types of motor vehicles, including passenger vehicles, motorcycles, work vehicles, trucks, and buses.

To get your vehicle back, you’ll need to pay fees and sort out any issues, like providing the right paperwork. If you don’t take care of things within a set time, you could lose the car, and it might be sold at auction to cover the costs.

Why is a vehicle impounded?

There are many reasons that your vehicle could be impounded. Some of these reasons include:

Traffic violations

If you're pulled over and can't provide valid ID or proof of insurance, or if your registration has expired, the police may impound your car. To get it back, you'll likely need to pay fines, show valid documentation, and cover towing and impound fees.

Arrest

If you're arrested while driving, the police might impound your car. You’ll usually have to wait until your legal matters are resolved before you can get it back.

DUI/DWI

If you're arrested for driving under the influence of alcohol or drugs, your car could be impounded. How long it’s held and what you need to do to get it back will depend on local laws.

Unpaid parking tickets

If you accumulate too many unpaid parking tickets, your car could be impounded. To get it back, you’ll usually need to pay all outstanding fines and the impound fees.

Evidence

If your car is involved in a crime or needed as evidence, it can be impounded. In this case, the car release depends on the investigation and approval from law enforcement or the courts.

Abandoned vehicle

If your car is left unattended in a public place for too long or is blocking traffic, it could be impounded as an abandoned vehicle. To retrieve it, you’ll need to prove ownership and may have to pay towing and storage fees.

What happens if a vehicle is impounded?

When the police impound your car, it means law enforcement has seized your vehicle for various reasons. Here's what happens:

Notification

The police officer will give the driver a notice when a car is impounded.

Contacting the impound lot

The vehicle will be towed right away to an impound yard, typically for seven days in Ontario or however long the impoundment is for. You'll need to contact the impound lot to find out where your car is being held.

Gather necessary documents

To get your car back, you’ll usually need to show proof of vehicle ownership, like vehicle registration, and provide personal identification, such as a valid driver’s licence. You also typically need to provide proof of insurance.

Resolve the issue

For traffic violations, you may need to pay fines or show that you've resolved the issue, like providing a receipt to show you paid the fine. However, if your vehicle was impounded as evidence in a criminal investigation, you’ll probably have to wait until the investigation is over.

Also, if your car was impounded due to illegal activities (like a DUI or involvement in a crime), you may face fines, penalties, licence suspension or criminal charges.

Pay the fees

You’ll be responsible for towing and storage fees. You'll usually find out what the towing and storage costs are when you contact the impound lot.

How vehicles are impounded differently across Canada

Car impoundment rules vary across provinces. Here’s a quick look at how it works in six different Canadian provinces:

Alberta

Alberta has two types of vehicle seizure programs, each for different situations:

• Immediate Roadside Sanctions (IRS): This program targets drivers caught driving under the influence.
• Suspended Driver Vehicle Seizure Program: This one is for drivers operating a vehicle with a suspended or disqualified licence.

Your vehicle can be impounded for up to 60 days, depending on the category under which your driving offence falls.

British Columbia

In British Columbia, police are required to impound vehicles for:

• Driving with a suspended licence
• Driving while prohibited
• Driving while unlicenced or improperly licenced
• Excessive speeding
• Street racing
• Impaired driving
• Being improperly seated on a motorcycle

Your vehicle can be impounded for:

• 7 days for your first infraction
• 30 days for your second infraction
• 60 days for three or more infractions in the past two years

Manitoba

In Manitoba, a peace officer can impound your vehicle for:

• Driving with a suspended licence
• Driving while prohibited
• Driving under the influence of alcohol
• Committing a prostitution-related offence
• Committing a serious motor vehicle offence

Ontario

In Ontario, police can impound your vehicle for:

• Being unable to provide a valid ID or proof of insurance
• Having an expired vehicle registration
• Driving with a suspended licence
• Driving under the influence
• Getting arrested while driving
• Having too many unpaid parking tickets
• Leaving your car unattended in a public place for too long

Your vehicle can be impounded for:

• Criminal Code convictions: 45 days
• Stunt driving or street racing: 14 days
• Other Highway Traffic Act offences: 7 days

Quebec

In Quebec, your vehicle can be impounded if a peace officer catches you:

• Driving with a suspended or penalized licence
• Driving without a valid licence or the wrong class of licence
• Excessive speeding
• Street racing
• Driving under the influence of alcohol or drugs
• Disobeying a peace officer’s order without a valid excuse
• Offering paid transportation without the proper licence or qualifications
• Driving with someone “car surfing” on the vehicle

Your vehicle can be impounded for 7, 30, or 60 days, depending on which offence you committed under the Highway Safety Code. In Quebec, you have up to 10 days after the impoundment period ends to claim your vehicle.

Saskatchewan

In Saskatchewan, law enforcement can impound your vehicle for:

• Impaired driving
• Driving a vehicle unauthorized
• Driving without a valid licence
• Failing to stop for a peace officer
• Stunt driving
• Excessive speeding
• Street racing
• Any criminal code offence under the Traffic Safety Act

Your vehicle can be impounded for:

• Impaired driving impoundments: up to 60 days
• Unauthorized driver impoundments: up to 60 days
• Rules of the road impoundments: up to 30 days

Has your vehicle been impounded? Don't let it keep you off the road. BrokerLink offers specialized car insurance solutions to help you navigate this situation smoothly and get back behind the wheel.

Our team of experts is here to provide you with the coverage you need and guide you through the process, ensuring peace of mind. Contact us today to explore our tailored options and regain your mobility.

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How do I get my vehicle out of impoundment?

To get your impounded vehicle released back to you, you’ll usually need to:

Contact the impound lot

Find out where your car is being held and reach out to the impound lot for details on fees, required paperwork, and their hours of operation.

Provide the right documentation

You’ll typically need to show proof of ownership (like your vehicle title), a valid driver’s licence, and any other necessary documents, such as insurance and registration.

Resolve the reason for impoundment

If your car was impounded due to issues like unpaid fines or a suspended licence, you’ll need to handle those with the relevant authorities before you can retrieve your vehicle.

Pay the fees

Be prepared to pay towing and impound fees, which can vary based on how long your car has been held. Keep in mind that the exact steps and fees can vary by location, so it’s important to contact the impound lot or local law enforcement for the most accurate information. Acting quickly is key to avoiding extra charges or the possibility of losing your car altogether.

Vehicle impoundment costs

The cost of getting your car released can vary based on factors like why it was impounded, how long it’s been held, and the specific impound lot or towing company involved. It also depends on where you're located in Canada. For our example, we've provided a general breakdown for Saskatchewan:

Towing fees

You'll need to pay a towing fee, which can range from $86 to more than $300, depending on factors like the distance your car was towed and including the following:

• Registered vehicle weight under 15,000 kg: $82.50 + $3.50 per loaded km
• Registered vehicle weight exceeding 15,000 kg: $295.00 + $5.50 per loaded km

Storage fees

The longer your car stays in the impound lot, the more you'll pay. Storage fees are charged daily at $17 per day at most compounds. It’s best to retrieve your car quickly to keep these costs down.

Release of vehicle fees

In Saskatchewan, once the impoundment period ends, or if an early release appeal is approved, you'll need to purchase a Vehicle Impoundment Release Certificate. The certificate costs $125 and can be obtained from any motor licence issuer.

Miscellaneous garage fees

You also have to cover miscellaneous garage fees in Saskatchewan, including:

• $50 minimum winching.
• $38.00 plus $0.63 per loaded km where a dolly or flatbed is required.
• $10 for returning plates from abandoned vehicles to SGI.
• $100 for administration fee.
• Note: Certain services that may be required (e.g., a battery boost) but are not listed here may be subject to an additional fee.

Other fines and penalties

If your car was impounded due to legal issues like unpaid fines or driving violations, you’ll need to pay those fines in addition to the impound fees. This might include fines for unpaid parking tickets or other driving violations, like speeding tickets.

These are rough estimates, and costs can change, so it’s a good idea to contact the impound lot or towing company for the most accurate information. You can also check the SGI Canada website for the latest details on impoundment procedures and fees in Saskatchewan.

Can I appeal a vehicle impoundment?

Yes, generally, you can appeal a vehicle impoundment. This will allow you to get a refund for towing and storage costs. However, the rules vary depending on the province you're in. Let's break down the six provinces we explained above:

Alberta

In Alberta, you can appeal your impoundment for several reasons, including:

• The driver was not served with a notice of suspension/disqualification.
• The owner was not driving the vehicle, and the vehicle was being driven without the owner's express or implied consent.
• The owner was not driving the vehicle when it was seized and could not have known the vehicle was being operated in a manner that would result in the driver being disqualified.
• The person driving the vehicle has not been served with a notice of suspension/disqualification under section 88 of the Traffic Safety Act.

In Alberta, you have until 11:59 pm the day before the vehicle is set to be released to apply for a vehicle seizure review. If you were the driver, you’d need to pay a non-refundable $150 application fee. If you're an affected person, the fee is $50.

To apply for a review, you can either access the SafeRoads portal or visit a participating Alberta registry agent. From there, you'll select a date for your application to be reviewed by an adjudicator and submit your request.

British Columbia

In British Columbia, you can apply for a review of a vehicle impoundment decision for impoundment periods longer than seven days. Requirements for the review include:

• The driver took the vehicle without the owner’s knowledge or consent.
• The person driving the vehicle was not prohibited or suspended.
• The person driving the vehicle held a valid driver’s licence or was exempt from the requirement to hold a licence.
• A notice to impound the vehicle of an unlicenced driver should not have been on their driving record.
• Police believe the impounded vehicle was stolen at the time of impoundment.
• The driver's spouse needs the car for work or educational opportunities.
• The driver's business partner requires it for business, and being without it would cause hardship.
• The impoundment will prevent a cohabitant, or a person under the vehicle owner's care, from obtaining medical treatment.

To file an appeal, you can schedule an appointment at an ICBC driver licencing office within 14 days of receiving your Notice of Impoundment. ICBC will submit your application to RoadSafetyBC, and a review will be scheduled.

Manitoba

In Manitoba, only the registrant, owner, or additional owner of the vehicle at the time of the offence can apply for a hearing. A hearing fee must be paid to process the application, and the hearing usually takes place about two business days after the application. If the registrant, owner, or additional owner wasn’t the driver, they can apply to a justice for a hearing to cancel the impoundment.

If the registrant, owner, or additional owner was the driver, they could also apply for a hearing to cancel the impoundment if the vehicle was seized due to a suspended or prohibited licence. However, they cannot apply if the vehicle was seized for offences like driving with blood alcohol content over .08 or .16 or for refusal to take a breathalyzer or field sobriety test.

If a registrant believes the vehicle was wrongfully seized (for example, if the driver wasn’t suspended), they can contact the Vehicle Impoundment Registry (VIR). If VIR agrees the seizure was a mistake, they will issue an Order to Release, allowing the registrant to reclaim the vehicle right away.

Ontario

In Ontario, only Criminal Code suspensions, like 45-day impoundments, can be appealed. Appeals for 7-day impoundments are not allowed. You can appeal if:

• The driver's licence wasn’t suspended as a result of certain Criminal Code convictions.
• The vehicle was stolen at the time of impoundment.
• The vehicle owner took all the necessary steps to verify the driver’s record with the Ministry of Transportation Ontario (MTO), to confirm the driver had a valid licence and wasn’t subject to an ignition interlock condition from a Criminal Code conviction.
• If losing the vehicle would cause significant hardship.

You can appeal by paying a non-refundable fee of $106 to file a Licence Appeal Tribunal form.

Quebec

In Quebec, you can appeal an impoundment for driving under penalty (sec. 209.2), and there were no other grounds for seizure entered on the procès-verbal de saisie de véhicule router (statement of seizure) by filling out an Application for Vehicle Release From Seizure form available at SAAQ service outlets or online. However, if the vehicle was seized for one of the following:

• Driving with a blood-alcohol level in excess of 160 mg per 100 ml of blood;
• Refusal to provide a breath or blood sample;
• Excessive speeding

You can appeal by filling out an Application for Review of Suspension of a Licence or the Right to Obtain One form available at SAAQ service outlets or online.

Saskatchewan

In Saskatchewan, you can appeal your impoundment (depending on the type of impoundment) for several reasons, including:

• The continued impoundment would pose a serious threat to the health of any person.
• The vehicle was stolen at the time of the impoundment.
• The vehicle owner wasn’t driving the vehicle.
• The continued impoundment would cause extreme hardship.
• The owner meets the impaired driving grounds for appeal.

To apply for early release, you need to purchase an Early Release Appeal Receipt from any motor licence issuer after paying the $175 non-refundable application fee. Then, contact the Highway Traffic Board to schedule a telephone hearing. Make sure to call before your impoundment period ends.

Call BrokerLink today!

If your vehicle has been impounded and you're wondering whether your insurance will cover any of the fees, reach out to BrokerLink. Our expert insurance agents are here to answer any questions you may have. You can reach us by phone, email, or in person at any one of our locations throughout Canada.

No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. If you're looking for more comprehensive car insurance, we encourage you to take advantage of our free online quote tool, which can provide you with a competitive quote in minutes.

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FAQs for car insurance impounded vehicles

Do I need special impounded car insurance for an impounded car in Canada?

No. While you do need to have valid insurance to retrieve your vehicle from the compound, you do not need impound insurance or compound insurance in Canada to cover impounded vehicles. This is temporary car insurance that is required for impounded cars in the UK.

If you have any questions, contact one of our local branches.