If you are not driving your car, why are you paying for car insurance? A number of reasons may stop you from using your vehicle. You may be able to save money each month if you are not operating your vehicle.
Your car may be unusable after an accident or breakdown, or you may not be driving due to a lifestyle change or suspended license. Whatever the reason, you can cut the cost of your auto premium in a few different ways.
Each state has different auto insurance requirements. As a driver with a registered vehicle, you must have at least the state’s minimum insurance requirements to drive on public roads.
You may have coverage that is more than the minimum requirements. If you seldom use your vehicle, reducing the level of coverage you have could save you money.
For instance, you may be paying for the following unnecessary coverage:
- Personal injury protection (PIP)
- Uninsured motorist coverage
- Collision insurance
Canceling your auto insurance altogether could result in fines if you drive your car without insurance. Likewise, your insurance rate may go up if you have a lapse in coverage.
Likewise, you will not be covered for any “acts of God” if you do not have car insurance. Hail, a fallen tree, flooding, and other disasters could damage your vehicle and cost hundreds to thousands to repair. Without auto insurance, those expenses will come from out of your pocket.
By reducing your insurance, you can save money while still having the benefit of some coverage. You will also avoid higher premiums, fines, and surcharges for dropping your coverage and resuming it later.
However, if you are active U.S. military personnel, you may have insurance requirement leniencies. You can suspend your coverage if you are being deployed overseas and your vehicle or vehicles will be parked during that time.
With more and more employees working from home, there are fewer people on the road. You may be able to get a lower rate if you drive less. Find out how low mileage can mean lower monthly payments.