Pausing Auto Insurance: Is It Possible?

If you're not planning on driving your car for a while, you might be wondering if you can put your auto insurance on hold. While most insurance companies don't allow you to suspend your policy temporarily, they may let you reduce your coverage. This is because insurance is required in most states, so you can't legally put your insurance on hold. However, you can cancel your insurance policy at any time, but only if you no longer have a car or have purchased a policy elsewhere.

Reducing your coverage

While most insurance companies do not allow you to put your auto insurance on hold, they may allow you to reduce your coverage. This is often referred to as storage or seasonal insurance.

However, it's important to note that reducing your coverage means you will only be suspending a portion of your policy, typically the liability insurance. You will still need to maintain comprehensive coverage to protect your vehicle from damages not related to an auto accident, such as damage from falling objects or bad weather.

Additionally, reducing your coverage may not be an option if you have an auto loan or lease. In these cases, you may be required to maintain full coverage on your policy.

• Check your state's insurance laws: Make sure you are still complying with your state's insurance laws, as well as any coverage requirements from your lender or lessor.
• Understand the risks: If you plan on driving your vehicle at all during the period of reduced coverage, you will need to reinstate liability insurance first. Driving without liability insurance can have legal and financial consequences.
• Consider the benefits: Reducing your coverage can help you limit costs while you're not driving your vehicle, maintain any insurance discounts you currently have, and avoid a gap in coverage, which can increase your rates.
• Explore other options: Depending on your situation, you may have other options for reducing your insurance costs without reducing your coverage. This could include increasing your deductible, taking advantage of discounts, adjusting your coverage amounts, or switching to usage-based insurance.

Cancelling and restarting your policy

Additionally, cancelling your auto insurance can be a hassle and leaves your vehicle without coverage. If you have financed your vehicle, your lienholder will likely require you to keep coverage on the car, especially collision and comprehensive insurance, to protect it even when it's not being used.

When you restart your policy, you may also need to pay a charge or fee to your insurance provider. This will vary depending on your specific cover provider, so be sure to get a full breakdown of the costs before making any decisions.

It's also important to consider the length of time you won't be driving your car. If it's only for a short period, such as a couple of weeks while you're on holiday, it may not be worth the hassle and cost of cancelling and restarting your policy. Additionally, your car will be left uninsured during this time, so there is a risk of damage or theft.

However, there are some instances where cancelling and restarting your policy may make sense. For example, if you own a classic car that you only drive during the summer months or if you spend a lot of time overseas and only return to the UK for a few months each year. In these cases, it may be worth speaking to your insurance provider about specialist facilities or policies that cater to these circumstances.

Overall, the decision to cancel and restart your policy depends on the length of time you won't be driving your car and whether it's safe to leave your car uninsured during this period. Be sure to weigh the costs and benefits before making any decisions.

Cancelling your policy

Most states require you to have at least the state's minimum amount of liability insurance on your vehicle to keep your registration valid. If you take car insurance off your vehicle, you must turn in your registration and plates to your state's Department of Motor Vehicles (DMV), or you could face penalties such as fines or even suspension of your registration and/or driver's license.

There are a few states where you can cancel your car insurance policy and suspend your registration, but this is usually for someone with a long period of planned non-operation for their vehicle, such as over six months for repairs.

If you cancel your policy, you will have a coverage lapse, which could increase your future rates. You will be labelled a "high-risk driver" and will generally get worse rates than continuously insured customers.

If you have a car loan, you will likely be ineligible to cancel your policy. Your lender will probably require at least some insurance on the vehicle.

Cancelling your policy and getting a new one later

Cancelling your auto insurance policy and getting a new one later is an option, but it is not recommended if you will be away for less than 2-3 months, as it is likely to be more trouble than it is worth and could cause your rates to rise when you return due to the lapse in coverage.

If you cancel your insurance, your vehicle will be left without coverage, which may be an issue with your state. Most states require you to have at least the state's minimum amount of liability insurance on your vehicle in order to keep your vehicle registration valid. If you take car insurance off your vehicle, you must turn in your registration and plates to your state's Department of Motor Vehicles (DMV), or you could face penalties such as fines or even suspension of your registration and/or driver's license.

There are a few states where you can cancel your car insurance policy and suspend your registration, but this is typically for someone with a long period of planned non-operation for their vehicle, such as over six months because they need to repair the vehicle.

If you have financed your vehicle, your lienholder will require you to keep coverage on the car, especially collision and comprehensive, as they want the car protected even while it's sitting and not being used. There is still a chance the car could be hit or even stolen.

If you want to save money on your policy, contact your car insurance company and let them know your vehicle will not be in use. Lowering the annual mileage you put on your car may trigger your rates to be discounted when you renew your car insurance policy.

If you plan on selling your car and not replacing it with another one, then you may cancel your policy altogether. Depending on where you live, you may be required to notify the DMV of your intention to cancel your policy. They may require that you sign an affidavit stating that you won't drive the vehicle. Keep in mind that if you have a car loan, this likely won't be an option for you.

Removing yourself from the policy

Removing yourself from an auto insurance policy is an option if you don't plan on driving, but someone else may need access to your car. However, this will usually only reduce your rates if you're younger than 25 or have a bad driving record when compared to other drivers on the policy.

If you are the owner of the policy, you can remove a listed driver from your car insurance policy if they no longer live with you and no longer drive your vehicle. Some insurers may request proof that the driver no longer lives with you. If the person you are removing is your spouse, you will need to obtain their written consent.

If you are thinking of removing yourself from a policy, it is worth noting that you will still have to pay for insurance while you're away, and you will have to add yourself back onto the policy once you return home for at least 30 days.

Frequently asked questions