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Do I Need Car Insurance If I Don’t Drive My Car?

Under certain circumstances, you may not drive your own car for an extended period. You are not driving your car for your own reason, whether that reason includes repairs, taking public transportation, or having another car. However, you still need certain types of coverage for a few reasons. There are certain things that you want to avoid, even if you do not drive your car.  For example, a tree may fall on your car, another driver may still hit your car, or there may be a fire. Under these circumstances, you will want comprehensive coverage, which covers accidents that are not your fault.

Another reason to keep your car insurance is to avoid a coverage gap. A coverage gap increases your premium in the long run. Auto insurance companies see a gap in coverage as a risk, and they will boost your premium to compensate for the risk. 

There are also state laws. In some states, you are required to keep insurance on a vehicle. This holds true even if you do not drive the vehicle. There is a legal minimum insurance, which depends on the state you reside in. Do not cancel your auto insurance without consulting your insurance company and state laws. You need some type of insurance on your car, or at least a legal agreement, because once your insurance is gone, your registration may also be canceled.

If I Cancel My Registration, Can I Avoid Paying Auto Insurance?

Canceling your registration proves to the state and your insurance company that you do not intend on driving your car. This is a complicated solution that can be expensive in the long run. Another solution that some insurance companies provide is simply lowering your premium. Storing your vehicle for an extended period of time tells your insurance company that you do not want to drive it at the moment. They may compromise by offering you comprehensive insurance to get around paying a full premium for a stored vehicle. 

If there is no insurance on your vehicle, you have to worry about your registration being canceled. There are also lapse fees to worry about, which can be as much as $50. A new registration in many states is also an expensive and unnecessary fee. Work something out with your insurance company before canceling all of your insurance. It is not legal to go without insurance on a car for any period of time, and the process of fixing it is expensive.

What Are The Consequences To Canceling My Policy?

You do not drive the vehicle, but you are still required to have the state minimum amount of insurance on it. Working something out with your auto insurance company is recommended. The consequences include losing your registration, a coverage gap, and lapse fees. Driving without registration is a crime in all states. It is considered a misdemeanor, and depending on the state, it results in hefty fees and jail time. You could also have your license suspended.

If your license is suspended, then your vehicle may be impounded by the police. Having your vehicle impounded results in more fees. Points may also be added to your license, which goes back to your insurance company. If your insurance company catches wind of points on your license, or if they hear that you were driving without registration, your insurance premium will skyrocket. 

There are a lot of expensive fees associated with not keeping insurance. Have a talk with your insurance company and familiarize yourself with state laws before canceling your policy.