New Ontario Vehicle Storage Lien Rules Effective July 1, 2016
Changes to Ontario’s vehicle storage laws, designed to reduce auto claims costs, take effect July 1, 2016. Previous to that date, when a vehicle had been damaged in an accident, it might be brought to a storage facility after the collision by someone other than the owner, or without the owner’s authority. Those who store vehicles after accidents could begin charging for storage services right away, even though the owner of the vehicle might be unaware of where their car was located and that it was accumulating charges every day. Storers could hold a vehicle and accumulate storage charges for up to 60 days without giving any notice and then still claim a lien for the storage costs.
Bill 15 is an omnibus bill passed into law back in 2014. One of the laws changed was the Repair and Storage Liens Act. As of July 1, the new regulation reduces the notice period from 60 days to 15 days for vehicles registered in Ontario. The new rules are expected to improve storage practices and remove associated costs from the auto insurance system.