Are you planning to take an extended vacation? Will the business be taking you out of the country for several months? Will upcoming surgery keep you from driving for the foreseeable future? Have you purchased a car for a project that won’t be road-worthy until the project is done? Whatever the reason, if your car is not going to be driven for an extended period does it still need to be insured? The smart answer is, yes! As with anything insurance-related, there are no absolutes. Many variables will come into play, but all experts suggest that you continue to insure your vehicle. Depending on the insurance carrier, you may be able to increase your deductible to reduce premiums. The type and amount of coverage you should carry depends on several factors:
State Requirements
In almost every state, if you own a car, it must be registered and insured. Even if you live in such a state, there are potential ways to save on premiums during the time the car won’t be driven. Become familiar with your state’s requirements for auto insurance. Some states require documentation to be signed validating that the vehicle will not be used for a specific period. However, certain coverage may still be required.
Financing
Your auto loan or lease will dictate the insurance coverage you are required to carry. Even if you’re side-lined from driving for an extended period, you must continue making payments, and you’ll need to uphold the requirements for coverage stated in the lease or loan documentation. The lender that holds the title will have incorporated state requirements into their documentation. If the car is yours, free and clear, the insurance requirements will still be dictated by your state requirements.
