Auto Insurance Options When You Are Not Driving
Although both those who are driving and those who aren't driving can benefit from auto insurance coverage, there should be a difference between these two groups of people. For example, you should consider the following measures if you won't be driving for some time.
Reduce Your Coverage
If you won't be driving for some time, one of the best options you can take to save money on insurance is to reduce your coverage. For example, you can strip off non-mandatory coverage such as comprehensive, collision, towing, and rental coverage, among others. In fact, the cheapest thing to do here is to maintain only the legally required minimum coverage (state-required liability coverage).
Suspend Your Coverage
Another option is to suspend your car insurance coverage. This option is good because you can resume your coverage anytime, and you will still be able to continue with the same policy as before. Unfortunately, this option is not available in all states or from all insurance companies; you may be out of luck depending on your situation. Another disadvantage is that you won't be protected from any risks, including theft or damage during storage.
Remove Your Name from the Listed Drivers
If you are part of a group insurance policy or you are listed as a driver in a policy that also covers other drivers or cars, then you can simply remove yourself from the policy. This is because if you are on such a policy, your risk factors are also used to calculate the insurance premiums. De-listing yourself is a good way of ensuring that only the remaining policy members affect the premiums.
Cancel Your Coverage
The last option is to cancel your insurance coverage. You can do this at any time, in any state, and with any insurance company. In fact, you may get a refund for the unused portion of your auto insurance premiums. However, you should be very careful while canceling your policy because it introduces a gap in your coverage. Such a gap may result in increased rates the next time you are buying auto insurance. Also, canceling your coverage won't be possible if your car loan is not yet paid up in full because lenders require continuous insurance coverage at all times.
Your reasons for not driving, the value of your car, and how long you won't be driving are some of the factors that will determine which route you take. You can also talk to an auto insurance agent before making a decision.
For more information, reach out to companies like Budget Insurance Offices Inc.