If you have a car that doesn’t run and you just can’t come up with the money to fix it right away, you may be thinking about dropping the insurance from the car. After all, you aren’t driving it so why should you pay for insurance protection? While this may seem logical, you should be aware that in most cases cancelling your car insurance is not a good idea, even for a car that doesn’t run.
In the United States, nearly all states have laws that require any registered vehicle to be insured. So, what are your options for saving money? Read on to find out and to make sure you don’t get yourself into a bind when it’s time to get that car on the road again.
Change Your Coverage
It doesn’t make sense to keep high levels of protection on a vehicle that does not even run. So, taking some time to review your coverage amounts is a good place to start saving money. Before cancelling your car insurance, see if adjusting your policy will bring the premium amount down enough for you to be able to keep continuous coverage until you can afford to make the needed auto repairs.
You could change to comprehensive-only coverage. This is also known as storage insurance. This type of insurance has some strict guidelines about the storage requirements and the coverage is usually only for a limited time. This is a good option for vehicles that are essentially taken off the road for the winter months but can apply to your broken-down car situation.
By going comprehensive-only and dropping your state’s minimum liability coverage amounts your car becomes illegal to drive on public roads. If you do and you have an accident, you will not be covered. However, the comprehensive coverage can protect your vehicle when it comes to damage while it is being stored or not in use. This includes damage due to storms, fire, theft, and vandalism.
Suspend Your Car Insurance
Another method to reducing your costs for a car that doesn’t run is to suspend your car insurance. This is better than canceling your coverage altogether. Many insurance companies allow you to pause your policy for a specific amount of time. One disadvantage to this option is that you do not have comprehensive coverage. So, if the vehicle is damaged while it is just sitting you will not be covered for things like storm or vandalism damage. If a tree falls on your car, you are out of luck.
Also, if you have an outstanding loan or lease on the vehicle the insurance company will not let you suspend your car insurance. Most banks and lenders require that you keep full coverage on your car, even if it is not running.
While paying for car insurance on a car that you can’t drive seems like a waste, keeping it insured is usually the best solution. If you want to reduce your premium, the best thing to do is to shop around to find the best rate.
InsuranceWins is here to help. Take the sting out of having to pay for a car that doesn’t run by filling out our simple form to see how much you can save.
It may seem useless to pay car insurance on a vehicle you cannot drive; however, it is usually the cheapest solution.
