Can I suspend auto insurance for a month?

It’s tempting to start canceling things when there’s money to be saved. Still, before you pause that auto policy on the car you have no intention of driving over the winter or summer months, the smarter play might be to reduce coverage rather than cancel it. Doing so might save you money in the long run.

Can you suspend or pause your car insurance?     

You can cancel your current auto insurance policy anytime. However, you might start getting nasty letters from the DMV with a list of demands. And if you forget that there’s no liability coverage on your car and you take it for a spin, you’re most likely breaking the law. 

If there’s a car under your name registered with the DMV with current registration and tags, then the DMV will most likely require some type of insurance on the vehicle, whether you actively drive it or not. This is a basic registration requirement proving that a car under your legal custodianship has assured protection for everyone.

Situations Where People Consider Pausing Their Car Insurance

There are many legitimate reasons people might need to pause their insurance or at least reduce its cost to a minimum, such as:

• Recovering from a medical issue like surgery
• Deploying overseas for longer than three months in the military
• An absolute, known period of time for vehicle nonuse and the car is already paid off

However, pausing insurance or canceling it means you have no liability coverage in the event your car is driven on a public road or street. Without comprehensive coverage, it won’t be protected against natural disasters. Also, without collision coverage, your car won’t be covered if an uninsured motorist hits it in a hit-and-run.

Reducing Your Coverage

Insurance companies are constantly looking for ways to mitigate risk and make money. If you decide to suspend your car insurance, there’s a strong chance they’ll interpret the pause as an increase in your riskiness as a driver. 

Insurers can use your higher risk status as a reason to raise your rates should you someday want to drive again. You may even have to look into high-risk insurance if regular insurers refuse to insure you.

Consider just how much a lapse in insurance might cost you down the road before you cancel or pause your policy.

Reducing your coverage to long term-storage, also known as comprehensive-only, might be a better option. You can also talk to your insurance company directly to give them an estimate of the actual miles you drive to ensure they understand just how little your vehicle is being used.

What happens if you suspend your car insurance?

If you simply stop paying your car insurance bill because your car was totaled, you might not have any immediate repercussions. But if you still have the car, it will not be covered in the event a tree falls on it, someone steals it, or it catches fire.

The DMV may require you to send them a legal statement saying the car is not in use and you’ve canceled your insurance.

Removing Yourself From the Policy

Removing yourself from the policy is a good idea to retain insurance for the car. However, it won’t help bring down the cost of the policy if the policy is under another safe and responsible driver’s name. It would likely only reduce costs for drivers with higher-risk profiles.

There may be other auto insurance discounts you qualify for that you can consider before canceling, including:

• Continuous coverage
• Safe driver discount
• Driver’s education
• Teacher/educator’s discount
• Anti-theft system
• ABS anti-lock brakes

When you call your insurance company to negotiate, you’ll likely want to tell them you’re considering cancellation. Then you can ask about bundling discounts and seasonal or long-term storage insurance to obtain the best price.

How do I cancel my insurance policy?

Simply call your insurance company and talk to a representative. Additionally, you can mail them a letter declaring that you are canceling your insurance. While email is the easiest option, each insurance company has different requirements.

You might need to cancel your auto insurance, but it’s crucial to prepare for not having coverage in advance. If you deploy with the military, consider how USAA auto insurance might be appropriate for you.

If you are permanently canceling your insurance, you might want to discuss your options with an insurance representative to make sure that your lack of coverage won’t put you in legal or financial jeopardy.