Can I suspend auto insurance for a month?
Suspending your auto insurance to save money during a period of nonuse might seem like an attractive option. Learn about the potential consequences before you make a decision.
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Michael Leotta
Insurance Operations Specialist
Michael earned a degree in Business Management degree with an insurance focus, which led to a successful 25-year career in insurance claims operations and support. He possesses a high-level of business acumen across multiple areas of the insurance industry. Over the course of his career, he served in multiple roles supporting claims operations including: Claims Specialist, Claims Trainer, Claim Au...
Insurance Operations Specialist
UPDATED: Sep 3, 2024
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Sep 3, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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It’s tempting to start canceling things when there’s money to be saved. Still, before you pause that auto policy on the car you have no intention of driving over the winter or summer months, the smarter play might be to reduce coverage rather than cancel it. Doing so might save you money in the long run.
- If you want to save money because you’re driving less, it might be better to reduce your coverage rather than pause or cancel it
- If your vehicle is being financed and hasn’t been paid off, you may be required to retain full coverage auto insurance
- Consider an option like comprehensive-only or long-term storage insurance instead
Can you suspend or pause your car insurance?
You can cancel your current auto insurance policy anytime. However, you might start getting nasty letters from the DMV with a list of demands. And if you forget that there’s no liability coverage on your car and you take it for a spin, you’re most likely breaking the law.
If there’s a car under your name registered with the DMV with current registration and tags, then the DMV will most likely require some type of insurance on the vehicle, whether you actively drive it or not. This is a basic registration requirement proving that a car under your legal custodianship has assured protection for everyone.
Situations Where People Consider Pausing Their Car Insurance
There are many legitimate reasons people might need to pause their insurance or at least reduce its cost to a minimum, such as:
- Recovering from a medical issue like surgery
- Deploying overseas for longer than three months in the military
- An absolute, known period of time for vehicle nonuse and the car is already paid off
However, pausing insurance or canceling it means you have no liability coverage in the event your car is driven on a public road or street. Without comprehensive coverage, it won’t be protected against natural disasters. Also, without collision coverage, your car won’t be covered if an uninsured motorist hits it in a hit-and-run.
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Reducing Your Coverage
Insurance companies are constantly looking for ways to mitigate risk and make money. If you decide to suspend your car insurance, there’s a strong chance they’ll interpret the pause as an increase in your riskiness as a driver.
Insurers can use your higher risk status as a reason to raise your rates should you someday want to drive again. You may even have to look into high-risk insurance if regular insurers refuse to insure you.
Consider just how much a lapse in insurance might cost you down the road before you cancel or pause your policy.
Reducing your coverage to long term-storage, also known as comprehensive-only, might be a better option. You can also talk to your insurance company directly to give them an estimate of the actual miles you drive to ensure they understand just how little your vehicle is being used.
What happens if you suspend your car insurance?
If you simply stop paying your car insurance bill because your car was totaled, you might not have any immediate repercussions. But if you still have the car, it will not be covered in the event a tree falls on it, someone steals it, or it catches fire.
The DMV may require you to send them a legal statement saying the car is not in use and you’ve canceled your insurance.
Removing Yourself From the Policy
Removing yourself from the policy is a good idea to retain insurance for the car. However, it won’t help bring down the cost of the policy if the policy is under another safe and responsible driver’s name. It would likely only reduce costs for drivers with higher-risk profiles.
There may be other auto insurance discounts you qualify for that you can consider before canceling, including:
- Continuous coverage
- Safe driver discount
- Driver’s education
- Teacher/educator’s discount
- Anti-theft system
- ABS anti-lock brakes
When you call your insurance company to negotiate, you’ll likely want to tell them you’re considering cancellation. Then you can ask about bundling discounts and seasonal or long-term storage insurance to obtain the best price.
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How do I cancel my insurance policy?
Simply call your insurance company and talk to a representative. Additionally, you can mail them a letter declaring that you are canceling your insurance. While email is the easiest option, each insurance company has different requirements.
You might need to cancel your auto insurance, but it’s crucial to prepare for not having coverage in advance. If you deploy with the military, consider how USAA auto insurance might be appropriate for you.
If you are permanently canceling your insurance, you might want to discuss your options with an insurance representative to make sure that your lack of coverage won’t put you in legal or financial jeopardy.
Frequently Asked Questions
What happens if you suspend your car insurance?
If you suspend your insurance, the car won’t be insured in an accident, and the vehicle won’t be covered for non-driving issues like theft, vandalism, animal damage, or fire. There will be a lapse in your insurance, which might raise your premiums moving forward.
What does it mean to suspend an insurance policy?
Even when a policy is still in effect, coverage may be suspended when an insurance company decides to no longer protect a policyholder. Usually, the insured breaks the conditions of the insurance agreement, which is why this occurs.
Can you pause car insurance?
You cannot formally pause your insurance coverage because it is legally mandated in the majority of states. You are free to terminate your insurance coverage whenever you’d like, but you should only do so if you have another policy in place or no longer own a car.
If you are a USAA member, you can call them if you are thinking about suspending your USAA auto insurance coverage prior to deployment. Doing so will help you understand the best way to reduce costs while protecting your vehicle while you’re away.
What happens if you stop paying for car insurance?
If you stop paying your car insurance bill, your policy will be canceled. However, this could have an effect on your ability to get coverage in the future, and it could also affect your credit. It’s best to call your insurer and tell them you wish to cancel. The process to cancel car insurance is quick, and the cancellation should be effective immediately.
Can I cancel my car insurance if I pay monthly?
You should be able to cancel your car insurance at any time, regardless of the duration of your policy. If you pay monthly, you will likely not be entitled to a refund of any kind.
Will suspending my car insurance save me money if I’m driving less?
Suspending your car insurance may not be the most effective way to save money if you’re driving less. Instead, consider reducing your coverage or exploring other options like pay-per-mile insurance that aligns with your reduced driving habits.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Michael Leotta
Insurance Operations Specialist
Michael earned a degree in Business Management degree with an insurance focus, which led to a successful 25-year career in insurance claims operations and support. He possesses a high-level of business acumen across multiple areas of the insurance industry. Over the course of his career, he served in multiple roles supporting claims operations including: Claims Specialist, Claims Trainer, Claim Au...
Insurance Operations Specialist
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.