Can I Pause Car Insurance If I Am Not Driving?
Learn if and how you can adjust your car insurance policy when your vehicle isn't being driven, and what factors to consider.
Car insurance protects against the costs associated with vehicle incidents. For many vehicle owners, the idea of adjusting their policy, particularly when a car will not be driven, presents an opportunity to manage expenses. Understanding how policies can be modified is helpful for individuals seeking to adapt coverage to changing circumstances.
Understanding Minimum Coverage Requirements
Automobile insurance is required in nearly all states for any registered vehicle that will be operated. This ensures drivers can cover potential damages or injuries they might cause. The primary legal requirement is typically liability coverage.
Liability coverage includes bodily injury and property damage liability. Bodily injury liability covers medical expenses and legal fees for others injured in an at-fault accident. Property damage liability covers damage caused to another person’s vehicle or property. Minimum coverage limits vary by state, often expressed as 25/50/25, indicating amounts for bodily injury per person, per accident, and property damage per accident. Some states may also require additional coverages, such as uninsured/underinsured motorist coverage or personal injury protection (PIP). Continuous liability insurance is often required to keep a vehicle registered.
Situations Allowing Policy Adjustments
When a vehicle will not be driven for an extended period, you may adjust the insurance policy to reflect reduced risk. This adjustment is often referred to as reducing coverage to “storage insurance” or comprehensive-only coverage. This policy suits vehicles not used regularly, such as those placed in long-term storage, seasonal vehicles, or cars belonging to individuals on extended travel or military deployment.
“Pausing” a policy typically means removing liability and collision coverages, which relate to driving risk, while maintaining comprehensive coverage. Comprehensive coverage protects against non-collision events like theft, vandalism, fire, falling objects, and weather-related damage. This approach helps vehicle owners save on premiums while protecting their asset from damages that can occur even when the car is not in motion. Some insurance providers may require the vehicle to be in storage for a minimum duration, such as 30 days, to qualify for such reduced coverage.
Steps to Modify Your Policy
Modifying a car insurance policy requires communication with your insurance provider. Contact your insurer, by phone or online, to discuss reducing coverage. Have your policy number and the specific dates the vehicle will not be in use available.
Explain that the vehicle will not be driven and will be stored securely. The insurer will guide you through options, which may include suspending coverages or transitioning to a comprehensive-only policy. You may need to confirm the vehicle’s storage location, such as a garage or other secure area. The insurer will process the change; obtain written confirmation of the policy modification and effective dates. This documentation serves as proof of your adjusted coverage.
Important Considerations When Reducing Coverage
Reducing car insurance coverage carries important implications. If liability coverage is removed or significantly reduced, driving the vehicle becomes illegal in most jurisdictions. Operating a vehicle without the legally required liability insurance can result in fines, penalties, and potential suspension of registration or driving privileges.
Vehicle registration may also be impacted if insurance is canceled, as many states require continuous coverage for registered vehicles. Even when a vehicle is not being driven, maintaining comprehensive coverage is advisable. This type of coverage provides protection against non-collision incidents such as theft, vandalism, fire, and damage from natural disasters. Lenders typically mandate that vehicles with outstanding loans maintain comprehensive and collision coverage until the loan is paid. Reducing coverage can lead to a gap in insurance history, which may result in higher premiums when full coverage is reinstated.