How to Pause Car Insurance

How to Pause Car InsuranceIt is required for every car owner to get car insurance, but sometimes you may want to put your car insurance on hold for a while due to one circumstance or another. Irrespective of your reason, whether you are traveling, moving abroad, or any other reason, you can place your car insurance on hold.

How to Pause Car Insurance

If you still intend on driving again, do not cancel your insurance completely. When you cancel it completely, your next insurance quote may increase when the gap in your coverage is noticed. Placing your car insurance on hold is one of the best ways to save money when you have an out-of-use vehicle. However, it is not easy to pause your car insurance; the options may be limited depending on your reason for pausing your car insurance.

What happens if you Pause your car insurance?

When you pause your car insurance, you will no longer be paying for insurance once your car is out of use. You will no longer have coverage lapses; this coverage lapse is most likely to increase your future rates. However, your car will not be covered if anyone uses it.

The vehicle will no longer be covered against fire, vandalism, damage, or theft. Pausing your car insurance policy does not cancel it. Most companies do not allow their customers to pause their insurance coverage, while some, in certain situations, will allow it.

How to Pause Car Insurance

Pausing your car insurance is not as easy as pausing your Netflix subscription. Following the right process makes this step easier to do. There are four basic steps to follow up on to complete this process. Below, these steps are listed.

Auto loan or car lease? Confirm with your lender first

The first step to take is to check if you are in an auto loan situation or a car lease. Here, you need to work out the minimum amount of insurance required to avoid breaking your lease or loan agreement. There are some requirements issued by your state that must be met, whether your car is driven or not. However, if you have no loan or lease, you do not need to go through the first step.

Work out insurance downtime

After working out your car ownership, you should try to accurately regulate how long your car will be off-road. This could be a fixed time, and it could depend on situations such as work trips, health situations, and so on. After this, you need to keep track of the dates you will be off-road.

Get in touch with the insurance company

When you have finalized how long you want to pause your car insurance policy, you need to go to the next step of contacting your insurer. The insurer will put you through the steps of pausing your coverage. Aside from that, it is also important to contact your state’s DMV to confirm if there are additional forms that need to be filled out. Just as the law requires, you need to inform the state that you will not be making use of your vehicle in an “affidavit of non-use.”.

Safely park your vehicle

Once your insurance has been paused, you need to park your car in a safe place. This is to prevent theft. Select a safe location that will not be easily detected by thieves. It is also advisable to secure your car in places such as garages, lockups, private parking lots, or anywhere that has security or CCTV. This is important to do since your car will not be covered for theft while your insurance is paused.

How to reactivate my Car Insurance

It is quite easy to reactivate your paused auto insurance. You just need to get in touch with your insurance company to make inquiries about the reinstatement of your insurance. Depending on how long your insurance has been paused, you may need to get a new policy. However, you will need to confirm that before proceeding with it.

After your insurance has been reinstated, you should contact your state’s DMV to confirm your car registration is valid. All you need to do is submit any paperwork required along with your updated insurance information. Take note that it is important to not get on the road until these steps are finalized to avoid fines for driving without a valid registration.

Alternatives to pausing car insurance

Aside from pausing your car insurance, there are other alternatives to consider. These alternatives are also another way to save money if you are in financial hardship. Keep in mind that driving without insurance is illegal in most places, and it has consequences. Some of the alternatives to pausing your auto insurance are listed below.

Removal of insurance add-ons

One of the ways to reduce your insurance costs without ending it is by removing add-ons from your policy. Add-ons such as equipment coverage, roadside assistance, and custom parts are some of the coverages that add to your insurance cost. By removing them temporarily, you can save some money, but you still need to follow up on the legal requirements for car insurance.

Moving to a higher deductible

Another option to consider to lower your car insurance premium is this one. The amount you agree to pay out of your assets before your coverage pitch-in is called deductible. When you choose a higher deductible, you will be taking on financial responsibility in the event of an accident. Since the insurance company assumes there is no risk, this will lead to a lower premium.

Cancel your car insurance policy

If you sell your car, canceling your policy is a good option to consider. You will need to check out your coverage and make reviews of the cancellation policies. You will also need to consider future potential rates and insurance needs. Here, you will need to contact your insurer for non-owner insurance.

Get your name off a shared insurance plan

If you share an insurance policy with your family members or any other person, you can get your name off the insurance plan since you won’t be driving for a certain period. By doing this, others will remain in the insurance, while you will avoid making payments for coverage you currently do not need.

Gain more knowledge about car insurance premiums

Learning more about car insurance premiums can help you make an informed decision so you can adjust your coverage. Driving records, location, vehicle type, and coverage limits help in determining your premium. When you gain more knowledge about these factors, you will have an easier time identifying where changes can be made in your insurance reduction.