Can You Pause Your Car Insurance? You may be wondering if you can pause your car insurance since life is full of unexpected events and changes. Possible causes of driving restrictions include long-term storage, travel, overseas employment, license suspension, car repairs, deployment, or recovery from driving-related illnesses or accidents.
Whatever the situation, you might eventually stop driving your car, which would reduce your auto insurance coverage. This article advises drivers considering pausing their car insurance for long trips, winter storage, or public transit to assess. This is if it is appropriate for these situations.
Can You Pause Your Car Insurance?
Yes, if you won’t be driving for at least 45 days, you can pause your car insurance and lower your price. With a Suspension of Coverage endorsement, current coverage for non-driving hazards is maintained when auto insurance is temporarily suspended for vehicle usage. Depending on your coverage, non-driving risks can include floods, theft, vandalism, and more. Therefore, consider this endorsement for cost savings and vehicle security when you plan to be away from your vehicle for extended periods.
When to Pause Car Insurance
Your insurer will stop coverage for a specified amount of time, depending on the cause for the halt, when you pause your auto insurance. For example, you may want to think about suspending your policy if you’re
- Placing the vehicle in permanent storage.
- Long-term vacationing or international travel.
- Being sent abroad.
- Operating an antique or seasonal vehicle.
- Managing a driver’s license suspension.
- Having a medical condition or injury that keeps you from driving.
- Awaiting auto repairs and being unable to operate the vehicle until they are completed.
Advantages of Pausing Car Insurance
When you pause your car insurance for a certain amount of time, you can gain several advantages. The following are a few advantages of pausing car insurance:
- Non-driving risks such as theft, vandalism, fire, and animal damage will be covered.
- The insurance required to drive the car legally will still be in place.
- It’s unlikely that you’ll experience a coverage lapse, which could raise your premiums in the future.
Most insurance providers allow clients to resume coverage after a suspension period. This implies that even if you temporarily suspend your coverage, you can still keep it.
Disadvantages of Pausing Car Insurance
Since there are a few advantages to pausing car insurance, we have also compiled some of its disadvantages. The following may include
- Every insurance company has a policy that cannot be paused.
- If you are financing or leasing a vehicle, you are not permitted to pause your car insurance.
- In some states, you may need to submit an affidavit of non-use to the DMV, pay a fee, and provide insurance information to reactivate your policy.
- You won’t be covered for every event without some extra coverage.
- Your insurance company may cancel you.
To decide if pausing your car insurance is the best course of action for you, weigh the advantages and disadvantages. If you need help, you can consult a financial advisor or insurance agent who can help you navigate this process and offer other options that suit your needs and particular circumstances.
How to Pause Car Insurance
There are some crucial considerations to make if you choose to lower your coverage when your vehicle is parked for an extended amount of time:
- Coverage reduction is limited to one month, and suspension is not possible if the coverage is less than this.
- Your state can require you to submit an affidavit of non-use for your vehicle to the DMV before lowering your car insurance.
- Since not all insurance companies permit pausing coverage, you may need to look for another one.
If you drive your car after suspension and are involved in an accident, you will be responsible for out-of-pocket liability costs and legal fees. Furthermore, you can contact another insurance provider to look into your choices if your current one rejects your request to suspend coverage.
How to Reactivate Car Insurance After a Pause
- Observe this rule if you intend to reinstate your auto insurance after a suspension.
- Examine the grace period policies of your insurance company.
- Make contact with your insurance company and request that your coverage be reinstated.
To guarantee ongoing coverage in the event that you are unable to reactivate your auto insurance, you can transfer to a different insurance provider and obtain a new policy from them.
Can I cancel my car insurance since I won’t be driving my car?
Of course, you can cancel your car insurance contract with your provider at any moment. However, you won’t have any coverage for your car, and you can be assessed a small cancellation fee. A variety of hazards, such as fire, hail, falling trees, theft, vandalism, and floods, can be protected against by insurance.
If your automobile gets damaged or stolen while you’re not using it, you’ll have to pay to have it repaired or replaced if you don’t have auto insurance. Additionally, you would have to spend time comparing auto insurance quotes and buying a new policy before you could start driving your car all over again. An insurance expert can assist you if you’re trying to find strategies to reduce your auto insurance costs.
