Should I keep my insurance if my car was totaled but I plan on buying a new ride in the next month or so?

My husband and I share a car. He was recently in an accident and the car was totaled. As of now, we don't have a car, but I don't want to spend money for insurance while we don't have it. Should I cancel my policy or hold onto it until I get a new vehicle?

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Eric Schad
Answered on May 04, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“If you were going to go the public transit route instead of buying a car, canceling your policy would make sense.
But since you’re planning on purchasing another car in the near future, you should definitely keep your car insurance. Carriers like to see drivers maintain continuous insurance coverage.
If you cancel the policy, you’re actually letting your insurance lapse. When you go to insure your new car, you’ll find that you’re now in the high-risk bracket, meaning you’ll have to pay higher rates for six months to a year, even with a clean driving record.
Bottom line: hold onto your car insurance and you’ll actually save money in the long run.”
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