Beyond Cancellation: Other Options When You Want To Take A Hiatus From Driving
Canceling your auto insurance when you want to take a temporary break from driving isn't a good idea; there are better alternatives you can choose. Here are a few examples of these alternatives:
Suspend the Coverage
You can put your car insurance on hold until you need it again. The possibility and requirement for coverage suspension depend on your state's laws and auto insurance company policies. Therefore, your first step should be to consult your insurer and learn more about the possibility. Some insurance companies only allow coverage suspension in specific situations. For example, many companies allow military personnel to suspend their coverage when deploying overseas.
Note that you will need to surrender your plates first before suspending your coverage. This is because every registered car must have insurance coverage, even those that aren't being driven. A major advantage of this option is that you get to keep your existing discounts and loyalty credits, and you can also reactivate your coverage easily.
Remove Yourself from the Policy
This is an excellent option if multiple drivers are listed on the car, but you are the only one who is leaving. This means if you were the primary driver of the car, you will need to designate another driver as the main one. For example, if you are leaving the car for a temporary contract outside the country, you can make your spouse or child the primary driver and remove yourself from the policy.
Unfortunately, this option won't benefit everybody. For example, it might not benefit you much if you are an excellent driver with an excellent driving history. After all, you will still need to pay the premiums, and the other drivers' histories will determine those rates. However, it's an excellent option if you were the riskiest driver on the policy.
The main advantage to this option is that you can still drive the car for limited periods; you aren't an excluded driver. For example, if you are working overseas but make periodic visits to your family, you can use the car as long as you restrict your stay to less than thirty days.
As you can see, canceling your policy isn't the only way to manage your car insurance costs if you won't be driving for some time. In fact, canceling your policy isn't advisable, since it leads to a gap in insurance history. You can also talk to your auto insurance agent on how to reduce your coverage and/or rates so that you don't have to resort to cancellation. Contact a company like Webers Insurance Service Inc to learn more.