Can You Put Your Car Insurance on Hold?
Understand how to temporarily modify your car insurance policy when your vehicle is stored, from reducing coverage to full reinstatement.
Putting car insurance “on hold” typically means reducing coverage, not completely suspending it. People often explore this option when their vehicle will not be driven for an extended period, such as during long-term travel, military deployment, or when a vehicle is stored for a season. This adjustment aims to lower premium costs while still providing some protection for the vehicle.
Understanding Reduced Coverage Options
Placing car insurance “on hold” usually translates to adjusting your policy to what is commonly known as “storage insurance” or “comprehensive-only” coverage. This specific type of coverage removes liability, collision, and other coverages that protect against risks associated with driving. For instance, uninsured motorist coverage and personal injury protection are typically removed from the policy. The primary condition for this reduced coverage is that the vehicle must not be driven at all while the policy is in this state.
Under this reduced coverage, the vehicle remains protected from non-driving perils, such as risks that occur while parked or stored. These perils typically include damage from fire, theft, vandalism, falling objects like trees, and natural disasters such as hail or floods. This approach offers a cost-effective solution for owners to maintain protection without paying for full coverage when the vehicle is not in use. It is important to note that if a vehicle is financed or leased, the lender often requires comprehensive and collision coverage to be maintained, regardless of whether the vehicle is being driven.
Process for Adjusting Your Policy
To adjust your car insurance policy, the first step involves contacting your current insurance provider directly. This can usually be done by phone, through an online portal, or by visiting a local agent. It is important to clearly communicate that you intend to reduce coverage because the vehicle will not be driven for an extended period. You should specify the desired start and end dates for the reduced coverage period.
Before contacting your insurer, gather essential information such as your policy number, the vehicle identification number (VIN) of the car, and the exact location where the vehicle will be stored. After discussing the changes with a representative, it is advisable to obtain written confirmation of the policy adjustment, including the effective dates and the specific coverages that will remain active. In some jurisdictions, you may also need to file an “affidavit of non-use” with the state’s department of motor vehicles to officially declare the vehicle off the road.
Considerations When Reinstating Coverage
When the time comes to resume driving your vehicle, reinstating full coverage is a necessary step. This process requires contacting your insurance provider again to inform them of your intention to reactivate the standard policy. You will need to provide a new start date for the full coverage, ensuring it is active before the vehicle is driven. It is imperative to have full, active insurance coverage in place before operating the vehicle, as driving without the legally mandated minimum liability coverage can lead to severe penalties.
A lapse in car insurance coverage, even for a short period, can have several negative implications. Insurers may view a driver with a coverage lapse as a higher risk, potentially leading to increased premiums upon reinstatement. Penalties for driving without insurance vary but commonly include significant fines, suspension of your driver’s license, and in some cases, vehicle impoundment. Additionally, some states may require drivers to file an SR-22 form for a period of time, which serves as proof of financial responsibility. While some insurers offer a grace period for missed payments, this differs from intentionally reducing coverage. Always coordinate with your insurer to avoid unintended gaps.