What happens to your car insurance when your vehicle is temporarily parked? Maybe you have a sporty convertible you only take out in summer, or maybe your pride and joy is gathering mothballs while you’re overseas for work. No matter the reason, there are ways to minimize insurance costs on a car you're not driving.
Do I need car insurance if I don’t drive my car?
As long as your car is registered, you’ll be required to maintain the minimum amount of coverage by California. But you may be able to drop additional coverage you’re not using, like roadside assistance or collision coverage. If your vehicle is kept in storage for long periods of time, broken down, or you're traveling, ill or injured this is for you!
How can I save on car insurance when I’m not driving?
If you’re not sure what to do with your car insurance while your vehicle is out of action — here are some options to consider:
- Cancel your policy. The simplest option is to cancel your policy completely and then purchase new coverage when your car is back on the road again. However, you won’t have any coverage in place against off-road risks like fire, theft and vandalism. This option is risky and we don't recommend ever having an uninsured car. If someone is test driving your car to buy it, you're still liable. If someone hits your car while it's parked, you're still liable. If someone breaks into your car, you're still liable. If a tree falls on your car, you're still liable. Make sense?
- Reduce your level of coverage. If you don’t want to cancel your policy, you may want to reduce your level of coverage – for example, switching from a comprehensive car insurance policy to the state minimum coverage. This allows you to save money on your premiums while still maintaining a certain level of coverage for your vehicle.
- Consider restricted-use coverage. Also known as pay as you drive car insurance, these policies allow you to save money by only insuring your car for a limited number of miles each year. The less you drive your car, the less you pay for insurance.
- Remove drivers from coverage. Consider removing multiple drivers from that car insurance policy for a temporary period. If you’re no longer a listed driver, you can lower your premiums but still retain coverage for others.
Source: Adapted from Finder.com Article