Can You Put Your Car Insurance On Hold?
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Most states require all vehicles to have insurance coverage by law. If you own a car, you need to be insured in some capacity. Unfortunately, there’s no way around that.
However, insurance companies are able to temporarily suspend your liability coverage if you won’t be driving your vehicle. This saves you money because you won’t be paying for coverage that you don’t use.
If you want to reduce your coverage while your car is parked for an extended period of time, there are some important things to note:
You can only reduce coverage for a month at a time. Any less than this and you cannot suspend your coverage.
Before reducing your car insurance, your state may require you to file an affidavit of non-use for your vehicle with the DMV.
If you drive without liability coverage, any liability costs or legal consequences are solely your responsibility.
Not all insurance providers allow you to suspend coverage and you may need to look for a different insurer if this is something you want.
The act of temporarily reducing your car insurance is as simple as calling your insurance provider and telling them that’s what you’d like to do. They will guide you through the rest of the steps.
You may be reading this and wondering if pausing your insurance is the right call. Just because you can, doesn’t necessarily mean that you should.
Some benefits of pausing your car insurance are:
At the end of the day, the most important thing is to make informed decisions about your insurance. Reading this article is a great first step, but it is no substitute for speaking directly with a professional.
So, can you pause car insurance? Technically yes, you can pause part of your car insurance, but it might not always be the right decision. Understanding the pros and cons (and financial implications) of pausing your car insurance will help ensure you make the right choice for your driving needs.
Margaret Huntley Margaret Huntley is a creative writing and philosophy student at Western University. She has been working as a freelance writer for over two years and has written about everything from insurance, to poker, to health and wellness for international businesses.
