Even though there are sometimes legitimate reasons to not maintain continuous coverage, insurance companies look at continuous coverage as proof of financial stability. And statistically, financially stable drivers have fewer accidents, which means they’re a lower risk to insure.
If you find yourself not driving your vehicle for extended periods, there are ways to save money in both the short and long term without canceling your policy. Many carriers have a “storage plan” option, which can be very affordable — just a few dollars a month. This plan is ideal for when cars are parked for the winter, for long-term repair jobs, for snowbirds (drivers who go south for the winter and leave their car at their northern residence), and for vehicles that are otherwise not being driven for months at a time.
Your carrier would remove liability coverage, and only comprehensive coverage would remain. This type of coverage protects the car from events like fire, theft, vandalism, weather damage, and glass breakage, all things that tend to happen when a vehicle is parked. However, no one can drive the car until the insurance company is contacted and the liability coverage is added back to the policy.
Keep in mind that every state is different; check with your local DMV and inquire if your vehicle’s plates need to be surrendered when liability coverage is removed. If you have a loan on your car, it’s also essential to check with your bank before removing any coverage.
Your Jerry agent will be able to walk you through this process if you feel this type of coverage will work for you; that’s what we’re here for!