Savvy Tips & Helpful Hints

Do I need insurance for a vehicle I don’t use?

Some people mistakenly believe that they can get rid of their auto insurance coverage if they don’t use their car. Unfortunately, having no insurance is prohibited in the vast majority of cases, as it is a legal requirement in most states to carry insurance on registered vehicles — even if it is just car storage insurance.

Auto insurance on a non-driving vehicle might be confusing, so below, you can find more details on whether you need auto insurance for your non-driven vehicle.

Do I have to have auto insurance when I’m not driving my car?

Your insurance provider may lower your overall coverage if you’re no longer driving a vehicle that you own. If you no longer need a car and give it to someone else, the title is transferred to their name and they are liable for the insurance coverage.

Fortunately, though, you can save money by suspending your policy with certain insurance providers. Suspending coverage may be necessary if you’re going to school in another country, traveling to another country, or taking part in military service.

If you are reluctant to part with an automobile that you no longer drive, you can get coverage for your parked vehicle for whatever the case may be. Insuring your parked vehicle will keep you in compliance with state law.

If you have a vehicle registered, you must carry insurance even if you no longer want to use it.

Why should you keep insurance coverage on a vehicle you no longer drive?

Even though you may save money by not having car insurance coverage, it is essential to consider the advantages of keeping your current policy in place.

Preventing a coverage gap is the most important consideration here. To drive your automobile again, you’ll need insurance. If you’ve been without insurance for a long time, it will show up as a gap on your record. 

So when you require an insurance quote in the future, you’ll see the implications of that. 

You should also keep the insurance active to have coverage for your car. If anything happens to your vehicle while off the road, you might be held liable.

Plus, damage to your car may not be covered by your homeowner’s insurance policy. So, if you don’t carry auto insurance, you are putting yourself at risk for hefty financial obligations as well as legal troubles. Besides, you can often get discounts by bundling home and auto insurance.

How can I save money on my vehicle insurance when I don’t drive?

There are methods to save money on your automobile insurance if you decide to keep the vehicle but don’t use it. 

Your insurance company may provide you with various discounts, but you’ll have to ask about the discounts to know what’s available from your insurer.

Low-mileage discounts are one of the most significant ways to save money on car insurance with most providers. The insurance company will need to know that you don’t drive your vehicle very often to get this discount, which means you will save money.

When you’re not driving for long periods of time, you’re less likely to get into an accident, so insurance companies will cut your rates because of the limited exposure to auto-related risks. 

Nowadays, everyone is looking for a way to make the most of their money and cut back on expenses. To get a discount, let your insurance agent know how much less driving you’re doing. This choice allows you to reduce insurance rates while still meeting state standards.

Imani Francies writes and researches for the auto insurance comparison site, She stays up to date on the newest auto insurance trends to help people save money when insuring new and older automobiles.

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