Posted on: 2 May 2017
In today's world when money is tight and so many people are living paycheck to paycheck, no one is looking to pay for things or bills that are unnecessary, So, if you have a vehicle on your insurance that you are not currently driving, you may be wondering if it is possible to get rid of it on your policy and save some much-needed dough without getting dinged. While it may not be as simple as canceling a subscription to a magazine, it is possible to do something about it. Here are three options that you have depending on your individual situation:
1. Suspend Your Auto Coverage.
By suspending your auto coverage, your are basically pausing your car insurance policy but you are not canceling it altogether. Some companies will not allow you to do this and some will only allow this to occur in certain situations. As an example, some companies will allow customers to suspend their coverage if they are in the military, they are being deployed for 30 days or more, and they will be storing their vehicle during that time.
Now, if you have an auto loan on your vehicle, suspending your auto coverage likely isn't an option. Auto loan lenders usually require that insurance coverage is maintained on a vehicle with a loan in the event of vandalism, theft, and other types of damage. Suspending your policy would leave you without insurance against these non-driving issues.
You will simply need to reach out to your insurance carrier and see if suspension is an option for you in your individual situation.
2. Cancel Your Insurance Policy.
Another option you have is to cancel your policy outright. This will allow you to avoid paying for coverage that you aren't using and you can get a brand new policy when you start driving the car again. However, just like with the suspension, if you have a loan on the car, this isn't an option. Again, you won't have coverage for non-driving problems, such theft, vandalism, etc. You will also create a coverage lapse, so there may be an increase in rates when you go to get a new policy.
3. Reduce Your Insurance Coverage.
If you are ineligible to suspend you coverage and don't feel comfortable canceling your insurance policy, then you do have another alternative: reducing your coverage. You will simply remove any coverage that is unnecessary while the car is in storage and is not being used so that your premium is reduced. This will allow you to maintain coverage so that you don't have a lapse and have to worry about dealing with increased rates in the future with a new policy. If you end up keeping comprehensive coverage, then your vehicle will remain covered in the event of theft, vandalism, fire and other non-driving problems.
Check with an insurance company like The Blondin Agency Inc - Nationwide Insurance for more information.Share