If you own a car that has broken down, and you are not using it anymore on the roads. You might think that it does not make any sense to pay for your car insurance anymore because it can be too much on your budget sometimes.
But the answer is that you need insurance for a car that is not in use. Because it is the requirement of most of the state to have insurance for the registered vehicle. If you do not want to continue paying for your insurance, you can cancel your vehicle’s registration.
In this article, we will be reading what other policies you can get for your car if it does not run the roads anymore. So, let’s get started!
This coverage protects your vehicle against non-collision damage, such as theft, vandalism, fire, and windshield damage.
How does it work?
Comprehensive company is also knowns and “comp only”, it is a cheaper alternative for insurance of your car when you do not want to pay for the full coverage. This coverage will give protection to your car, which is not in use anymore and stored, against physical damages like theft or fire, etc.
But, comprehensive coverage does not make it legal to drive a car for you, because as already mentioned you need at least the state’s minimum liability coverage for a vehicle that runs on the road.
What are the Requirements For Comp-only Coverage?
Comp-only coverage requirements are varied in different companies. If you want approval for comprehensive, some companies will require your vehicle to be in a storage center or garage for at least 30 days.
Storage conditions for a Car that does not Run
If you are planning to store your car and limit your car insuranceto comprehensive coverage only,your insurance company will define the proper storage conditions where you can store your car while it’s not on the roads. Your insurance company will not cover the damages if you leave your car parked in your driveway and it gets damaged by extreme weather conditions such as scorching heat, snow, or hails, etc.
The minimum requirement for most of the companies is to keep your car properly in your garage or some storage centers.
Suspending Your Coverage
If you think you do not want to pay comp only as well, suspending your car insurance for the time you are not using your car on the roads, can be another option for you. By suspending your insurance you pause your policy rather than canceling it. And, can save some money or a few months.
But, if you suspend your insurance, your car will not be covered for any damage caused by storms, fire, theft, etc,.
Suspending policies for insurance varies from company to company, not all the insurance companies let you suspend your insurance. If your vehicle has some loan on it, you can not suspend the insurance on it— most of the lenders require full insurance coverage in this case.
Should you Cancel your Coverage?
The answer to this question is dependent upon how many cars you have on your policy. But generally, it is not considered a good idea to cancel your car insurance even if you do not use it anymore.
If you have more than one car on your insurance policy, and no one is going to use the broken down car on the roads anymore, you should not insure your car.
It is recommended that you can cancel your car’s insurance by canceling the registration of this vehicle. Because it is the requirement for some states that every registered vehicle should be insured.
If you have only one vehicle on your insurance policy, it is not a good idea to cancel its insurance because you might need it again on the roads. The time-lapse in your insurance coverage will affect the car insurance rates when you will be in the need of a policy again.
Drawbacks of Cancelling the Coverage for a stored Car
By cancelling your car insurance you might be saving up some money for the short term but, it is not worth it to cancel your car insurance even if it is stored. Some of the reasons why you should not cancel your car coverage even if it is stored.
1- Creation of Gaps in Coverage
The gaps in your insurance policy history can put you in a high-risk category with your insurer and you have to pay higher premiums when you need another insurance policy for your car.
According to a good rule of thumb, you should never let your car insurance lapse.
2- Your Car will be at Risk
If you cancel the comprehensive coverage too, your car will always be at risk of damages against theft, vandalism, fire, storms, and other natural disasters. And in case of no coverage, you have to pay for the damages from your pocket, which can damage your budget.
3- Violation of Sates law
It is a requirement for some states to have coverage for minimum liability for a registered car. So, if your car is registered and you cancel your car’s insurance, you are violating the state’s law. And you can face fines, penalties on your driver’s license, or might end up getting in jail.
4- Violation of Policy requirements
If your car is on loan, you just can not cancel your insurance. Because your lender may have the requirement of full coverage of your car, even if it is not in use. So, by canceling the insurance you are also violating the policy requirements.
After all the discussion it seems like a better option, that you should not cancel your car’s insuranceeven it is not in use currently.
It may seem like your car is not in danger when it is not on the roads, but the perils of car damage even in storage exist and your insurance helps you in solving those problems.