Can You Pause Car Insurance?
Depending on your state's rules, you may be able to pause your car insurance if you won't be driving for an extended period of time.
Written by Jacqulyn Graber
Reviewed by Jessa Claeys
In some U.S. states, drivers can legally pause their car insurance policies if they won’t be driving for an extended period. However, it is essential to carefully follow all of the laws associated with pausing your insurance so that you don’t get penalized for not carrying your state’s minimum required coverage.
Are you taking a long trip abroad and won’t be driving a car? Or, maybe you’re going away to college without your vehicle. Perhaps you’ve been recently injured and cannot drive. Or your driver’s license was suspended, leaving you unable to legally operate your vehicle anyway.
Whatever the reason, you might be inclined to pause your
car insurance
to save yourself some money while your vehicle sits in your garage. But is that even legal?In some states—yes! But it’s important to follow the process perfectly so you don’t get penalized for a coverage lapse. Read on to discover everything you need to know about pausing your car insurance policy.
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Depending on the circumstances, yes—you can pause car insurance coverage. Some U.S. states will allow you to pause your insurance if you don’t plan to drive for quite some time.
Pausing or suspending your insurance coverage could be a great option if you plan to keep your car parked in your driveway or garage for an extended period. Here are a couple of circumstances that may prompt you to suspend your auto insurance policy:
- You’re taking an extended trip away from home and won’t be driving
- You’re being deployed overseas with the military
- You’re a college student and not taking your vehicle to campus
- You’re healing from an injury or surgery and won’t be able to drive
- You’re waiting for yoursuspended license to be reinstated
However, it’s important to understand all of the regulations so that you don’t get penalized for being uninsured. Generally, you can contact your insurance company and speak to an insurance agent, who will walk you through your state’s rules and your options.
In addition to thoroughly checking your local laws, it’s also important to speak with your lender if you’re financing your car. Regardless of state laws, they may require you to hold certain amounts of
full-coverage car insurance
(i.e., collision insurance
and/or comprehensive insurance
). What happens if you suspend your auto insurance?
If you choose to suspend your auto insurance coverage, you need to be ready for a few consequences. First, your state will most likely assert that your vehicle can no longer be registered. You’ll have to immediately turn your registration tags and/or license plates in to the Department of Motor Vehicles (DMV). This means that your uninsured vehicle will have to stay parked!
It’s also important to note that a “pause” or “suspension” of
liability insurance
will typically be recorded as a lapse in coverage on your driving record—regardless of your reasoning. This could result in higher premiums down the line when you’re ready to get your re-registered vehicle insured again. Pros and cons of suspending your car insurance coverage
So—should you go ahead and temporarily cancel your car insurance coverage? Let’s weigh the pros and cons.
The benefits of canceling your car insurance coverage:
- Generally, canceling your car insurance is simple and fast regardless of the car you drive or the auto insurance company you have
- You’ll save big on insurance costs while your vehicle is out of use
- You can quickly secure a new policy from your preferred insurance provider whenever you’re ready to drive again
The potential setbacks of canceling your car insurance coverage:
- The vehicle won’t be covered by liability coverage if anyone wants to drive it—which means it’ll have to sit in your driveway or garage
- Vehicles that are stored for an extended period of time tend to experience issues, such as battery charge problems
- The vehicle won’t have insurance against non-driving problems like fire, property damage, animal damage, vandalism, or theft
- The period that you are uninsured will register as a coverage lapse, which means your car insurance rates could be higher down the road
How to suspend your insurance policy
Generally, there are three institutions you should contact if you want to suspend or pause your car insurance coverage: your car loan provider (if applicable), your car insurance company, and your local DMV.
If you are still paying on your
car loan
, contact your lender to see if they’ll allow you to cancel your car insurance coverage. Many loans require drivers to hold collision coverage and/or comprehensive coverage, so it may not be possible. If your vehicle isn’t financed, or your loan provider is okay with you suspending your policy, the next step is to contact your car insurance company. They’ll be able to go over your state’s laws and help you explore your options.
Instead of canceling your policy altogether, they may be able to recommend cheaper car insurance policies, such as car storage insurance, usage-based car insurance, or even basic liability insurance with a higher deductible. All of these options could lower your monthly payments while still satisfying your legal coverage requirements and providing you with a small level of protection.
If you do decide to cancel your policy, you’ll want to follow up by contacting your local DMV. You may need to provide them with an affidavit of non-use or turn in your
vehicle registration
and/or license plates. Are you overpaying for your car insurance?
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FAQs
Is suspending your car insurance policy a good idea?
Depending on your circumstances, suspending your car insurance policy could be a great way to save money—especially if your vehicle will be stored and not driven for an extended period.
However, it’s important to remember that you cannot drive an uninsured vehicle, and your car won’t be protected against non-driving related threats. Finally, a lapse in coverage—no matter the reason—can make it more difficult to find cheap car insurance quotes later on.
How long can you pause car insurance?
As long as you’re not driving your vehicle, motorists can generally pause or suspend their auto insurance coverage indefinitely—so long as your state laws and financing institution allow it.
