Re-posted on 2/8/19
If you have a car that you are just storing, or plan to leave your car here in the U.S. while you leave the country, or if you just don’t drive the car that much and don’t want to pay for auto insurance, here are some tips to consider.
Don’t Cancel Your Auto Insurance
If you cancel your insurance completely, you’ll now have a gap in insurance coverage, also called a lapse in coverage. When you come back to needing insurance, and reinstate your policy, you will probably be put into a higher risk category, and will probably pay much more. A better solution may be to investigate putting your car into “storage” with your insurance company, which means you would be putting just comprehensive coverage on it. Comprehensive coverage will protect your car against theft, fire, a tree falling onto it, really anything that’s not a “collision”, and comprehensive coverage by itself is extraordinarily cheap!
Beware, however, with just comprehensive coverage, you or anyone you’d give permission to, are not covered to drive on the streets. All you are covered for is keeping the car parked on your property, or in a safe place, but you are not covered to drive it.
If You Have A Loan On The Car
If you have an auto loan on your car, you are probably going to be required to keep liability coverage on the car. Speak with your auto lender to find out what they require as far as coverage. You can tell them you plan to garage your vehicle and you won’t be driving it, and ask what is the minimum coverage they require. Then call your agent. Ask what it would cost to reduce your coverage to the State Minimums for liability coverage, if you are required to keep liability, so you can reduce the overall payment while you are gone.
If You Own The Car
But what if you own the car outright? In other words, you don’t have a loan on the car and you don’t have to answer to anyone else but yourself. You plan to just garage your car, or park the car, and not drive it anymore. Maybe you’ve decided you want to keep it for whatever reason: as an investment, maybe it needs work and doesn’t start anymore, hand it down to grandchildren. Perhaps you use your primary car all the time and never drive the other one, but just start the engine once in a while to keep the battery good. Whatever the reason you choose to park the car, you still should consider putting comprehensive coverage on it in case anything bad were to happen to the car. Theft, fire, wind, hail, etc.
Ask your agent about keeping that 2nd car you own on your policy, to be eligible for a multicar discount. The comprehensive coverage on that parked car is so inexpensive, and adding it to your other primary car for the multicar discount may end up saving you money on your overall auto insurance premium! We’ve seen this many times. Keeping comprehensive coverage on your parked car you never drive while using your other primary car to keep the multi-car discount is important in keeping your premium as low as possible.
You will need to discuss your policy with your auto insurance agent to see how your policy works.