As you’ve adapted to your work from home routine, you may have noticed that you aren’t driving your car very often, if at all. And while your car is sitting in your garage, you may be wondering why you’re still paying for auto insurance or if there are any available discounts since you aren’t using it as often. Here’s what to know about pausing, canceling or reducing your car insurance.
COVID-19 Pandemic Impact on Auto Insurance
As remote work became a necessity to many organizations at the start of the COVID-19 pandemic, many vehicles were left parked in the same place for months. This led to many auto insurance companies offering auto insurance discounts for their customers’ auto insurance premiums. With remote work looking to become a more permanent norm, discounts for things such as vehicle usage will likely continue in the future.
Many insurance carriers have been understanding of the situation at hand and their customers who have been financially impacted by the pandemic, with some carriers pausing cancellations due to nonpayment and offering special payment plans. You’ll want to talk to your insurer directly about what they offer for payment assistance during these changing times.
Do I have to keep auto insurance on a car I don’t drive?
Most states require you to have auto insurance even if you aren’t driving your car. One potential way to lessen your auto insurance coverage is to only keep the minimum amount of coverage that is required in your state.
Can you pause car insurance?
For most carriers, you can’t really “pause” your car insurance, but if you plan on not driving your vehicle for at least 30 days, you may be able to pause your liability coverage depending on your carrier. During this time, you’ll likely have to keep your comprehensive coverage to protect your vehicle still.
Reduce Your Car Insurance Coverage to Cover Only What You Need
Revisiting your car insurance coverage is an easy way to make sure you aren’t paying too much for coverage you don’t need. Since you can’t technically pause your policy, you may consider lowering certain coverage limits.
Another option is to switch to usage-based insurance, also known as telematics. This type of coverage calculates a discount based on how many miles you drive, your driving habits and when you drive. The less miles you drive, the lesser chance of an accident, and more of a chance for a discount.
This coverage quiz can also give you an idea of what kind and what amount of coverage is right for you.
How to Cancel Your Car Insurance and Why You Shouldn’t
Cancelling your car insurance policy is usually a quick process that requires a call to your insurer directly, but you should only consider doing this if you’re getting rid of your vehicle. Cancelling your car insurance policy could lead to higher rates in the future if you plan on keeping the car.
Remove Yourself from an Auto Insurance Policy
If you are on a shared auto insurance policy, you can remove yourself from the policy while still keeping coverage for the primary driver. This can often help lower the cost of coverage, but you may not be able to legally drive the car once you are removed, as insurance will no longer cover you and the vehicle if an uninsured party is operating it.
SelectQuote Can Help You Find the Right Amount of Car Insurance Coverage for Your Needs
The right car insurance protects both your vehicle and your assets at the best price available. At SelectQuote, we’ll learn more about your car and your situation, ensuring you have an auto insurance policy that is right for you at a price that works for your budget.