Need to Cancel or Suspend Your Auto Insurance? Here's How.

If you’re not driving as much as you used to or have stopped driving temporarily, it might not feel like it makes sense to keep paying for auto insurance. If you’ve decided to store your car temporarily, it may not make sense to When this happens, what are your options? You could cancel your auto insurance, or you could try suspending your policy. However, each of these comes with some drawbacks that may mean it isn’t worth it to do so. Here’s everything you should consider before ditching your insurance.

What does it mean to suspend your car insurance?

When you suspend your policy, you’re essentially giving up your coverage without actually canceling your policy. This can help you avoid a coverage gap. If an insurer sees you’ve had periods of no coverage (a gap), they’ll likely give you higher rates when you’re ready to get a new policy. But while suspending your policy can help you avoid those gaps, it might not be a realistic option. If you don’t own your vehicle outright—if you’re leasing it or are still making payments on it—you’re likely required to have a minimum amount of coverage on it. Depending on where you live, states also require coverage for cars that aren’t being driven.

Because of this, insurers typically only let drivers suspend coverage in rare and specific circumstances. For example, certain insurance providers will allow suspension for deployed members of the military.

What about canceling your car insurance?

Typically, the same requirements for suspending your car insurance also apply to canceling it. If you don’t own your vehicle outright, you probably won’t be able to cancel your policy. If you do own your vehicle, it’s possible to cancel it—but this can quickly become a headache. For example, you’ll have to turn in your license plates. You’ll also have the gap in your insurance coverage, which can lead to higher rates when you’re ready to get coverage again. Lastly, you’ll have to pay to register your vehicle again and get new plates.

Why is it so difficult to suspend or cancel coverage?

The reason it’s so difficult to suspend or cancel your coverage is because even if you aren’t driving your car, it’s still at risk. Theft, fire, floods, and other assorted environmental hazards can still damage your car in storage. If something should damage your car, you’ll be on the hook for those damages yourself.

Fortunately, there are some steps you can take to save on insurance while you’re not driving your car. You could drop all coverage but the bare minimum, which is usually comprehensive coverage, as long as no one will be driving your car at all. You can also ask your agent whether you qualify for low-mileage discounts. When it comes to suspending versus canceling versus lowering your coverage, your agent will be able to advise you best. However, if you’re ready to find entirely new, less expensive coverage, try out our tool for drivers just like you!