Should I Cancel My Car Insurance if I’m Not Driving?
Call Now: (800) 719-9972

Deciding to Drop Car Insurance when You’re Not Driving: Factors to Consider

By 8  am on

Deciding to Drop Car Insurance when You’re Not


Cutting costs for services you no longer need makes sense when you’re trying to stick to a budget. While it’s not fun paying for services you aren’t using, there are a few that are worth continuing to keep. People often stop driving for a variety of reasons. Whether you’ve hung up your keys as a senior or are simply driving less due to working from home, here’s what you need to know about choosing when to keep or cancel your car insurance.

Expect a Lender to Require Insurance Coverage

Most lenders want to know their investment in your car is protected in case of an accident. Since lenders are usually listed on vehicle titles, they’ll typically require borrowers to maintain comprehensive coverage on their cars until their loans are paid off. If you’ve recently finished paying off a loan, you may still want to keep at least liability insurance if you plan on driving the car occasionally.

Consider Your Car’s Registration Status

The state of California requires all vehicles to be covered by insurance when they’re registered for use on public roads. This law protects everyone who drives from being in an accident with someone who doesn’t have adequate coverage to pay for someone’s injuries or property damage after a collision. 

If you choose not to have insurance, you’ll need to complete and submit an Affidavit of Non-Use for any vehicles you own and plan to register. This informs the state that you plan on not driving the vehicle, and choosing to do so could lead to penalties.

Think about Where You Store Your Vehicle

Vehicles that aren’t registered cannot be driven or parked on public streets and highways. If you plan on parking your car next to your house on a public road, you’ll need to make sure it’s registered. In this instance, it might be easier and more cost-effective to maintain your car insurance because you’ll likely need to drive it again to move it from the road to your driveway or garage. A car stored in a secure garage or storage facility may not need coverage unless you’re ready to sell it or plan to get it back into driving condition.

Keep Potential Damages in Mind

Even if you aren’t planning to drive your car, it could be vulnerable to damage. Car insurance covers damage from collisions with other vehicles and cyclists. Your vehicle insurance policy may also cover hail damage and other weather-related problems. Maintaining your insurance policy means you won’t have to worry if your car needs body work due to an unforeseen circumstance.

Avoid Cancellation Fees & Renewal Challenges

Sometimes maintaining an insurance policy can save you money in the long run. Canceling your car insurance now means you’ll likely need to start a new policy in the future when you begin to drive again. In some cases, this could mean losing discounts for having a long-term policy and maintaining a clean driving record. If you won’t be driving your vehicle, you could still retain coverage by letting your insurance company know about changes in your driving habits that could lower the premiums on your policy.

Before you decide whether to cancel your insurance policy, make sure to speak with an experienced agent to help you weigh the benefits and disadvantages. When they need affordable, reliable auto insurance, San Diego drivers turn to Altra Insurance Services. For high-quality coverage and outstanding service, reach out to one of our friendly representatives today to learn how you can save money on your car insurance.

Have Questions?

Ask What You Want

    Call Us: For Free Consultation
    (800) 719-9972

    Powered By Saba SEO