Do I still need insurance for a car that doesn’t run? If your car isn’t running and you have full coverage insurance, you might question whether it’s necessary to keep it. It’s crucial to understand if insurance is needed for a non-operational vehicle.
No one wants to pay too much for car insurance. This article will explain if you need insurance for a non-running car, how to get insurance without a car, and more. Keep reading to learn if insurance is required for a car that doesn’t run.
Reasons Why You Need Insurance For a Car That Doesn’t Run
Just because your car isn’t running doesn’t mean you can drop your insurance altogether. While it might be tempting to save money by canceling your coverage, there are still some scenarios where keeping insurance on a non-operational vehicle could protect you from unexpected risks and legal troubles. Let’s explore why maintaining insurance might be a smart choice for a car that doesn’t run.
- Guard against damages: Even if your car isn’t running, you might still face risks like theft, vandalism, or weather damage from hail or flooding. Comprehensive coverage can help you recover costs from these incidents.
- Avoid a coverage gap: If the broken-down vehicle is your only car, dropping your insurance could lead to higher rates later on due to coverage gaps. Keeping some insurance is wise for the future.
- Maintain loyalty discounts: Staying insured with the same company often earns you loyalty discounts. Canceling your policy could mean losing these savings for future cars.
- Meet loan/lease requirements: If your inoperative car is under a loan or lease, you might still be required to maintain comprehensive and collision coverage by the lender.
You might be thinking that if you cancel the insurance, you may be able to avoid paying premiums and save money. But know that you can pause your car insurance until your car is fixed or you replace it. However, we suggest keeping comprehensive coverage for protection against damages from fires, floods, or theft. If you want to restore your car, comprehensive insurance can be beneficial.
In What other Circumstances do I Need Car Insurance?
If your car is not broken down but is in your storage, has never been driven, or has an outstanding loan, What do you do in these situations?
- If your car is in storage, it should have insurance that includes comprehensive coverage to guard against fire, theft, and vandalism.
- The car is never driven. The same rules apply, particularly if your car is parked outside and vulnerable to damage from things like hail, not just other vehicles.
- The car has an outstanding loan. You remain responsible for your car loan, even if you don’t drive the car. Regardless of refinancing or bankruptcy options, maintaining at least comprehensive coverage is essential. If you do use your car, make sure you meet your state’s insurance requirements.
Lower Insurance Rates for a Car That Doesn’t Run
Of course, nobody wants to pay a huge insurance premium for a vehicle that doesn’t run. You can keep your rates very low by following the below steps.
- Shop around: All car insurance companies provide discounts. Look into savings opportunities, like low mileage or staying loyal to one provider. Consult your agent to discover which discounts suit your situation.
- Discounts: All car insurance companies provide discounts. Look into savings opportunities, like low mileage or staying loyal to one provider. Consult your agent to discover which discounts suit your situation.
- Drop all coverage but comprehensive coverage: When you’re not using your car, you don’t need to worry about liability coverage. Because since you won’t risk harming other people’s property or causing injuries. Collision insurance, which pays for your car’s repairs in an accident, isn’t necessary either. Additionally, you don’t need uninsured motorist coverage when your car is safely parked away from other drivers. Instead, maintain comprehensive coverage to protect against damage from non-collision events. Reducing your insurance coverage should lead to lower costs.
If you wish to protect your car that is not running, having comprehensive coverage is a good and cheap way to do so. After all, if you want to rescue your car, you will be very happy to not pay from your pocket for any damages from floods, fires, or whatever life throws at you.