The occurrence of unexpected things often affects our needs and financial obligations. Life itself is full of unexpected circumstances; if you won’t be driving your vehicle for a while, you might occasionally find yourself wondering if you can pause your car insurance.
The thought of temporarily suspending your insurance coverage may sound alluring if you’re going on a long trip, working abroad, parking your car for the season, or are having financial difficulties at the moment. However, state laws and insurance company practices might differ greatly when it comes to pausing car insurance.
Can You Pause Car Insurance?
There are several reasons that may warrant suspending car insurance. Most people seek to pause their cause insurance when their divers’ license is currently suspended, working abroad, or traveling for a long period of time.
There are laws that guide whether or not you can suspend your car insurance. In most states, drivers are required to carry car insurance in order to diver legally on the road. Nevertheless, there are certain insurance companies that allow their customers to suspend their car insurance coverage for the mean time.
In most cases, you will be allowed to suspend your liability and collision coverage, but you still have to carry comprehensive insurance; it all depends on your insurance company. You can as well lower the cost of your car insurance by putting it on hold rather than canceling it outright.
Do I Need To Insure A Car I Don’t Drive?
Generally, you need to insure a car regardless of whether you drive it or not. In most states, drivers are required to carry a minimum level of auto insurance coverage even if the car is not in use. This is essentially to ensure that you are adequately covered in the event of expected damage or potential liability.
If you intend to store your vehicle for an extended period of time, we strongly advise you to purchase a comprehensive insurance policy. This type of coverage offers protection against theft, vandalism, and natural disasters.
However, it is crucial to check the rules and regulations set forth by your state and insurance company to guarantee compliance with the law and maximum protection of your vehicle.
How to Suspend Your Car Insurance
If you share a motive for putting your car insurance on hold due to some reasons, here’s how to go about it.
- First, reach out to your insurance provider to confirm if you can suspend your coverage for a while.
- After contacting your insurer, you will be required to sign an affidavit of non-use with your state’s DMV.
- Once your car insurance has been suspended, park your car in the garage or somewhere safe for a month or more.
It is important to note that if you drive your car after suspending it and you get into an accident, you are deemed responsible to pay out of pocket any liability cost and legal fees. On the flip side, if your insurance company does not approve your coverage suspension, you can reach out to another insurance company to explore other options.
Pros of Suspending Car Insurance
There are several advantages you get to enjoy when you put a hold on your car insurance for a specific period of time. We have highlighted some of the benefits below:
- It is cost-effective.
- It helps to avoid coverage lapses.
- It enables policyholders to maintain their discounts.
- You will be covered in the event of physical damage.
In addition to these, most insurance companies allow policyholders to reinstate their coverage after suspending it for a while. This means that you can still retain your coverage after putting it on hold for a while.
Cons of Suspending Car Insurance
While we have listed some of the advantages of suspending car insurance, let us also take a look at some of its drawbacks:
- Some insurance companies do not approve of coverage suspension.
- If you are financing or leasing a car, you won’t be able to suspend your insurance.
- If you suspend your car insurance occasionally, your insurer may cancel your policy.
- You won’t be covered for every type of accident.
Carefully weigh the advantages and disadvantages attached to suspending your car insurance. This would enable you to know if you are making the right choice or not. If you need guidance, you can speak to a financial advisor or insurance agent that would guide you through and provide other alternatives that align with your needs and unique situation.
How to Reactive Your Car Insurance After Suspending It
If you plan on reinstating your car insurance after a suspension, following this guideline;
- Review the grace period of your insurance policy.
- Contact your insurance company.
- Provide all the required information.
- Then, confirm coverage details to ensure you have the right coverage.
In a situation where you are unable to reactivate your car insurance, you can switch to a new insurance company and get a new policy from them to ensure continuous coverage.
Conclusion
Although pausing your car insurance can offer financial relief while your car is not in use or you experienced a significant change in life, it is important to understand the implications and requirements needed for suspending your coverage. State laws may require coverage even during non-driving periods, and various insurance companies have different suspension policies.
Before deciding whether or not to pause your car insurance, thoroughly assess your unique circumstances, weigh your options, and speak with your insurer about other alternatives that can work for you.
