Removing Your Auto From Insurance Policy

Removing your auto from your insurance policy can save you money if you're not using it, but it's not as simple as cancelling a subscription. If you're experiencing financial hardship, insurers may be lenient and offer delayed payments or special payment plans. You can reduce your coverage, suspend your coverage, or remove yourself from a policy temporarily. If you want to remove a driver from your policy, you'll need to contact your insurance provider and provide proof of their new insurance or residence.

Removing a driver from your insurance policy

When to Remove a Driver

You can remove a listed driver from your insurance policy if they no longer live with you or drive your vehicle. This could be due to a change of residence, such as a child moving out or going away to college. In the case of a death in the family, you may need to provide a death certificate to initiate the change. It's worth noting that if the driver still lives with you, your insurer may require them to be listed on your policy.

Proof of Change

When removing a driver, your insurance company may request proof that the person's living situation has changed and they no longer have access to drive your vehicle. This could include proof of new insurance, proof of new residence, or other relevant documentation. It's a good idea to contact your insurer to understand their specific requirements for removing a driver.

Excluding vs. Removing a Driver

It's important to understand the difference between excluding and removing a driver from your policy. Excluding a driver means they are not allowed to drive any of your insured vehicles, even in an emergency. This is typically done for high-risk drivers with poor driving records to prevent their history from affecting your insurance rates. On the other hand, removing a driver is appropriate when they no longer live with you or drive your car regularly.

Contact Your Insurer

The process for removing a driver may vary depending on the insurance company. Some companies may allow you to remove a driver online or through an app, while others may require you to contact a representative directly. Be prepared to provide the necessary documentation and follow their specific guidelines for removing a driver from your policy.

Impact on Insurance Rates

Removing a driver from your policy may result in changes to your insurance rates. If the removed driver had a history of claims and accidents, your rates may decrease. However, if the driver had a clean record, your rates could potentially increase. It's a good idea to review your policy and consider other options, such as comparing quotes from multiple insurance companies, to ensure you're getting the best rate.

Cancelling your insurance policy

Contact Your Insurance Provider

Get in touch with your insurance company to inform them of your intention to remove a driver or vehicle from your policy. Some companies may allow you to do this online or through their mobile app, but others may require you to speak with a representative. Make sure to review the exact process with your insurer.

Provide Necessary Information

When removing a driver, you may need to provide details such as their name, date of birth, and driver's license number. If the driver no longer lives with you, some insurers may also request proof of their new residence, such as a utility bill or lease agreement.

Review Updated Policy

Once the changes have been made, carefully review the updated policy documents to ensure that the driver has been successfully removed.

Confirm and Adjust Payments

Your future bills will reflect the changes, and you will only pay for the drivers who are still listed on the policy.

It's important to keep your policy up to date, especially if the removed driver starts using your vehicle again in the future. Make sure to add them back to the policy promptly to maintain proper coverage and financial protection.

Removing Yourself from a Policy

If you are looking to remove yourself from a family car insurance policy, this can be done if you are going away and others in your household will continue to drive the car. This option may save you money if you are a riskier driver than the others on the policy. However, if it doesn't result in any cost savings, it may be more convenient to stay on the policy.

Cancelling Your Policy

If you are considering cancelling your auto insurance policy entirely, it's important to note that this will create a lapse in your insurance history, which could lead to higher rates in the future. Additionally, if you have a car loan, your lender may require you to maintain at least some insurance on the vehicle.

In conclusion, removing a driver or vehicle from your insurance policy can be a simple process, but it's important to review the specific requirements of your insurance company. Keeping your policy up to date and maintaining continuous coverage can help ensure that you have proper coverage and protect you from financial risks.

Reducing your insurance coverage

• Reduce your coverage to the minimum requirements: Almost every state requires liability insurance, and some mandate additional coverages such as uninsured/underinsured motorist protection, personal injury protection, and/or medical payments coverage.
• Keep comprehensive insurance: If you are storing your vehicle, consider keeping comprehensive insurance, which covers non-driving problems such as fire, animal damage, vandalism, and theft. In some cases, you may be able to keep a comprehensive-only policy, also known as "car storage insurance."
• Increase your deductibles: By choosing a higher deductible, you can lower your insurance costs. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage costs by 15-30%.
• Reduce coverage on older cars: If your car is worth less than 10 times the premium, it may not be cost-effective to maintain collision and/or comprehensive coverage.
• Remove unnecessary coverages: Review your policy line by line and consider removing any coverages you may not need, such as roadside assistance or car rental coverage.
• Shop around for better rates: Compare quotes from multiple insurance companies to see if you can find a lower rate for the same level of coverage.
• Take advantage of discounts: Ask your insurance company about any available discounts, such as those for safe driving, low mileage, or bundling multiple policies.

Remember, it is important to maintain continuous coverage to avoid being labelled a "high-risk driver" and facing higher rates in the future.

Suspending your insurance coverage

Suspending your car insurance coverage is a way to save money if you have an out-of-use vehicle. However, it is not as simple as cancelling a subscription. Your options may be limited depending on why you are taking a break from driving the vehicle and whether you have a car loan.

Suspending your coverage essentially pauses your policy but does not cancel it, saving you from a coverage lapse. You won't have to pay for insurance while your car is out of use, and you won't have a coverage lapse, which could increase your future rates.

However, the vehicle won't be covered if anyone wants to drive it, and it won't have insurance against non-driving problems like fire, animal damage, vandalism or theft. You will also need to add yourself back onto the policy once you return.

When to suspend your car insurance coverage

You might consider suspending your car insurance coverage when:

• You are moving to another country
• You are going away to college and not driving
• You are experiencing a health condition that doesn't allow you to drive for a long period
• You are waiting for a suspended driver's license to be reinstated
• You are being deployed overseas with the military

When not to suspend your car insurance coverage

Suspending your car insurance coverage may not be the best option if you are worried about theft, natural disasters or other events outside your control. In this case, maintaining a policy with comprehensive coverage is recommended.

If you plan to let someone borrow your car, consider keeping optional coverages like comprehensive and collision coverage to protect you financially from damage to your car while someone else uses it.

If you plan to drive again within a few months, consider keeping some level of coverage so you don't have to quote an entirely new policy and get a potentially higher rate.

How to suspend your car insurance coverage

If you have a car lease or loan, check with the lender before suspending your coverage. They may require you to maintain a minimum level of comprehensive and collision coverage.

Next, find out if you can cancel your car's registration by submitting an affidavit of non-use or other forms to your state's department of motor vehicles.

Then, contact your insurance company to reduce or cancel your insurance coverage for the period when you won't be driving. Before removing liability coverage, find out from your state's department of motor vehicles if you need to file any forms because your car isn't being driven.

Alternatives to suspending your car insurance coverage

Instead of suspending your car insurance coverage, you could:

• Reduce your coverage: You can reduce your auto insurance to the minimum car insurance requirements. Keep in mind that almost every state requires liability insurance, and others mandate uninsured/underinsured motorist coverage, personal injury protection and/or medical payments coverage.
• Remove yourself from the policy: If you are going away but others in your household will be driving the car, you may be able to remove yourself from a family car insurance policy temporarily. This can save you money if you are a riskier driver than the others on the policy.

Removing yourself from a policy

If you are not going away and continue to live with other drivers insured on the policy, this may not be an option. Many companies require all drivers listed at the same address to be included on a policy or be specifically "excluded". Removing yourself from the policy is not the same as being an excluded driver. If you are simply not listed on the policy, you can still drive the car. Excluded drivers are not supposed to drive the car and may be required to prove they have other insurance in order to be excluded.

To remove yourself from a policy, you may need to provide proof of new insurance, proof of a new residence, proof of death, or a signed removal request. If you are removing a child from your policy, you may need to provide proof of their new insurance or proof of a new residence if they have moved out. Some insurance companies allow you to exclude a driver via their mobile app.

If you are removing yourself from a policy, be aware that you will have to add yourself back onto the policy once you are home for at least 30 days. You will also have to pay for insurance while you are away.

Frequently asked questions