Can I alter my Auto Insurance for Winters Migrations and Extended Vacation Stays?
Question: I go away on vacation for the winter and don't bring my car. Can I alter my policy in order to save money?
InsureMeOnline.com’s Answer:
Everyone clearly wants to save as much as possible when it comes to auto insurance and InsureMeOnline.com’s cheap online quotes are one great way to save. In regard to suspending auto coverage as another way to save, we, the experts, believe it’s important to remember that auto insurance is not just coverage for accidents that happen while your car is being driven. Different parts of your policy serve different purposes, so the question of whether or not to suspend your coverage for several months at a time is really more complicated than it appears.
Collision coverage, liability coverage, uninsured/underinsured motorist coverage, and medical payments coverage are what most people think of when they hear the phrase "auto insurance." Each of these different types of coverage protects you against some aspect of a potential automobile accident. But one must take into account that comprehensive coverage is another important part of your policy. Comprehensive coverage insures you against damage to your vehicle caused by events other than an accident, i.e. fire, theft, flooding, or vandalism. Any of these things can happen to your car, even when it's not being driven. The risk of certain occurrences, such as theft and vandalism, may be heightened if your vehicle will be parked outside an unoccupied home for any significant length of time.
Therefore, the basic answer to your question is that you might be able to suspend part of your policy if your car won't be driven for an extended period of time, but it would be unwise to cancel your policy entirely.
Now, another question is whether your current auto insurance company (and your state) will allow you to temporarily suspend part of your policy's coverage. Most states require that all registered vehicles carry a minimum amount of insurance coverage, so suspending your coverage may also mean dealing with the hassles of suspending or canceling your registration (and reinstating it when you return). And even if the state does have a system that allows this, your current insurance company may or may not be willing to allow you to suspend part of your coverage temporarily. To find out for sure, you'll need to contact your company or agent and ask. One additional important consideration is if you have an outstanding car loan on your vehicle, the terms of the loan probably require that you keep the car fully insured. Check your loan documentation carefully before you take steps to suspend your insurance coverage as many require you to carry coverage on your vehicle until it is completely paid for.
Perhaps your insurance company is unwilling to suspend part of your coverage and you think there's little risk that your car will be damaged or stolen from your garage while you're gone. Whatever you do, don't think that you can simply stop paying your premiums, let the insurer cancel your policy, and then purchase a new policy when you return from your winter getaway. A canceled policy will show up on your credit report, and can make it extremely difficult (and expensive) for you to get any kind of coverage in the future.
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