Becoming an Adult
Suspending Car Insurance Coverage
Robin King
Many motorists have wondered whether they can or should suspend car insurance at some time. For example, you may want to suspend your coverage if you feel you won't be driving for some time. You should know whether it is legally possible to do so, plus the pros and cons of such a move, before you take any steps.
Why People Suspend Coverage
State laws determine whether you can suspend your car insurance coverage. Insurance companies have different regulations, and some won't allow the suspension. Some companies allow coverage suspension in specific situations. If your circumstances allow the suspension, you may want to suspend your coverage if:
- You are going on an extended trip and won't be taking the car
- You are facing a lengthy recovery after an illness
- You have a suspended driving license
In such situations, you may want to suspend your car insurance to save money. Ensure no one else will drive the car during the suspension because you must repair the car out of pocket.
Why You Should Maintain Coverage
First, know that car insurance is valuable whether you drive or not. Below are some reasons to maintain car insurance at all times.
Car Protection
Comprehensive insurance protects your parked or stored car from damage that might find it there. For example, the coverage can replace or repair if a fire breaks out in the garage and causes damage to it.
Insurance Continuity
Auto insurance companies do not like coverage gaps. They view drivers with coverage gaps suspiciously. How can the insurance company confirm that you never drove once when you didn't have coverage? Such gaps increase your insurance rates. Maintain car insurance to avoid such gaps.
Medical Treatment
Some insurance policies will pay for your medical treatment after an auto accident. Since you don't have to drive or even be in a car to incur an accident, insurance coverage may help you even if your car is in storage. For example, the coverage may pay for your medical treatments if another car hits you while walking by the road.
Third-Party Requirement
Lastly, third parties with ownership claims to your car may require you to maintain the coverage. For example, the bank that financed the car purchase won't allow you to suspend insurance coverage if you haven't cleared the loan payments.
Hopefully, you will never be without car insurance when you need it most. Contact your auto insurance agent for advice on reducing car insurance costs without exposing yourself to avoidable risks.
For more information, contact an auto insurance agent near you.
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After I graduated college, I started to feel like an adult. I started teaching at a school. I also bought a car. And I became the owner of several insurance policies. I obtained a comprehensive insurance policy for my car. I also secured my first life insurance policy at this time. I didn’t want my family members to be burdened with funeral costs if I suddenly passed away. A few years after graduating college, I became a homeowner. After this joyous occasion, I invested in a homeowners insurance policy. On this blog, I hope you will discover the most common types of insurance people purchase.