Do You Still Need Car Insurance If Your Vehicle Isn’t Being Driven?

Many drivers have periods where they don’t drive their cars. There are several reasons for this, such as traveling overseas, dealing with an injury or health crisis, or transitioning to remote work.

In these situations, it might seem unnecessary to pay for car insurance. This naturally leads drivers to ask the question, does my car need insurance if I’m not driving it? 

Unfortunately, there’s no easy answer to this question. In most circumstances, you have to maintain some minimum levels of car insurance coverage. That said, there are some times you can pause your auto insurance. 

Here’s a look at the factors you should consider before pausing or canceling car insurance. For specific car insurance questions, contact GoAuto Insurance. 

When Can Drivers Pause Car Insurance on a Car They’re Not Driving? 

If you’re not driving your car for an extended period, there are three things you need to consider before pausing or canceling your car insurance.

1. Your state’s laws. All states require certain minimum amounts of insurance for cars registered in the state. This means that to maintain your registration, you need to carry your state’s minimum amounts of insurance coverage. Canceling your registration and then registering your car again can be a hassle. Unless you’re pausing your insurance for a long period, it’s probably not worth the hassle to cancel your registration. 
2. Your insurer’s rules. Insurance companies usually have rules regarding pausing insurance. For example, you can only pause for a minimum of two months or once in a 12-month period. For many companies, canceling your insurance will result in higher costs. Before pausing or canceling your insurance coverage, make sure you’re familiar with all applicable rules. 
3. Your lender’s requirements. Lenders usually require a minimum amount of insurance for financed cars. Check all lender requirements before canceling your insurance. 

In addition to these requirements, drivers should consider the risks of canceling or pausing car insurance. Even if you’re not driving your car, there are things that can happen to it. Without insurance coverage, you’ll have no protection if your car is: 

• Stolen
• Vandalized
• Damaged by hail
• Damaged by a tree limb or other natural event

Drivers need to consider these risks before canceling insurance. Owning a car that is not insured can put the owner at significant risk of loss. 

Ways to Reduce Car Insurance Costs While Not Driving Your Car

Given the applicable requirements and potential risks, canceling insurance usually isn’t a good idea. That said, there are ways you can reduce insurance costs when you’re not driving your car. 

1. Reduce coverage. Reduce your coverage to state-required minimums during periods when you’re not driving. You can also cancel add-ons you won’t need – for example, rental reimbursement insurance or roadside assistance. 
2. Ask your insurance company about discounts. Many car insurance companies offer discounts for low-mileage drivers or accident-free drivers. For example, some companies offer up to a 10% discount for low-mileage drivers. Contact your insurance company to see if you qualify for any discounts. 
3. Increase your deductible. Another way to reduce your premium is by increasing your deductible. Given your reduced risk of a claim when you’re not driving, this is a strategy that many drivers are comfortable with and a good way to lower your premium. 
4. Shop around. There are low-cost car insurance companies that can help you save money. Compare rates and shop around to ensure you’re getting affordable car insurance. 

Contact GoAuto Insurance to Customize Your Car Insurance Plan

For most drivers, it makes sense to keep car insurance even when they’re not driving their vehicle. That said, there are plenty of ways to reduce insurance costs during these times. Contact our team at GoAuto Insurance to discuss your situation. 

We’ll create a personalized coverage plan for you that’s affordable and complies with all applicable requirements. Call us today, chat online, or visit one of our car insurance offices.