Key Takeaways:
- Even if you don’t drive often, you do need insurance but you can save money by pausing or choosing to reduce coverage.
- Occasional drivers should check pay-per-mile programs to see if they can save money on car insurance.
Even if you don’t drive your car very much, you still need insurance on it. That being said, there are a number of choices at your disposal to reduce the cost of your insurance. If you plan to drive your automobile for a specific amount of time, you might be eligible to suspend your auto insurance. However, depending on the regulations in your state, the policies of your insurer, and the requirements of your auto lender, you might not be able to temporarily renounce all of your coverage. You must keep your vehicle insured to the minimum level mandated by your state, usually liability coverage, as long as it is registered in the state in which you now reside. However, you might be able to cancel any unused extra coverage, such as collision or roadside assistance.
When is the right time to suspend my auto insurance?
You may wish to temporarily halt auto insurance for a vehicle you aren’t currently operating for a number of reasons, such as:
- Your car is stored for an extended amount of time
- Your vehicle needs repairs because it is broken down.
- You were temporarily sent to a job abroad.
- You’re going to be away from home for a long time
- you’re too sick or injured to drive
When You’re not driving, how can you reduce my auto insurance costs?
Here are some choices to think about if you’re unsure what to do with your auto insurance while your car is not in use:
Cancel your policy: The easiest course of action is to fully cancel your policy, then get new coverage as soon as your vehicle is operational again. This implies that you won’t be responsible for any insurance costs while your vehicle is parked. On the other hand, you won’t be covered for off-road hazards like theft, fire, and vandalism.
Cut back on the amount of coverage: If you decide against cancelling your policy, you might want to lower the amount of coverage you have. For instance, you could want to go from having comprehensive auto insurance to just the bare minimum required by your state. This enables you to keep your vehicle’s coverage at a specific level while saving money on your premiums.
Cut back on the amount of coverage: If you decide against cancelling your policy, you might want to lower the amount of coverage you have. For instance, you could want to go from having comprehensive auto insurance to just the bare minimum required by your state. This enables you to keep your vehicle’s coverage at a specific level while saving money on your premiums.
Consider coverage for restricted uses: These policies, also referred to as pay as you drive auto insurance, let you save money by just insuring your vehicle for a set number of miles per year. Your insurance costs will go down the less you drive your vehicle.
Put a stop to coverage: The insurance company can occasionally agree to let you halt coverage temporarily. This option isn’t frequently provided, though.
Take yourself out of the insurance: Think about temporarily dropping your coverage under your auto insurance. You can reduce your premiums while maintaining coverage for other drivers if you are no longer a listed driver.
What does this mean for you?
You do have some options if you need to temporarily halt or stop your auto insurance policy without completely cancelling. Find out which choice is appropriate for your required amount of coverage and suspension duration by speaking with your insurance provider. Compare different auto insurance companies to find the best fit for you if your present provider is unable to assist you.
