Whether you’ve transitioned to remote work, changed careers, or have had another lifestyle shift, you may have noticed that you aren’t driving your car very often, if at all. While your car is sitting in your garage, you may be wondering why you’re still paying for auto insurance or if there are any available discounts since you aren’t using it as often. In this article, we’ll discuss what to should know about pausing, canceling, or reducing your car insurance based on your budget and needs.
Impact of Remote Work on Auto Insurance
As remote work became a necessity for many organizations at the start of the COVID-19 pandemic, many vehicles were left parked in the same place for months. This led to many auto insurance companies offering auto insurance discounts for their customers’ auto insurance premiums. With remote work looking to become a more permanent norm, discounts for things such as vehicle usage will likely continue in the future.
The insurance industry has been monitoring and responding to the impact of remote work on auto insurance. Some insurers have introduced usage-based insurance programs that track driving behavior, offering potential discounts to policyholders with reduced mileage and safer driving habits. To learn more about the discounts and savings opportunities available to you, you’ll want to talk to your carrier directly.
Do I have to keep auto insurance on a car I don’t drive?
Most states require you to have auto insurance even if you aren’t driving your car. One potential way to lessen your auto insurance coverage is to only keep the minimum amount of coverage that is required in your state.
Can you pause car insurance?
For most carriers, you can’t really “pause” your car insurance, but if you plan on not driving your vehicle for at least 30 days, you may be able to pause your liability coverage, depending on your carrier. During this time, you’ll likely have to keep your comprehensive coverage to protect your vehicle from weather-related damage like hail, vandalism, and theft. However, it's important to consider the potential impact on your insurance premiums when coverage is reinstated, as insurers may consider factors such as lapse in coverage when determining rates.
Reduce Your Car Insurance Coverage to Cover Only What You Need
Revisiting your car insurance coverage is an easy way to make sure you aren’t paying too much for coverage you don’t need. You may consider lowering certain coverage limits since you can’t technically pause your policy.
Another option is to switch to usage-based insurance, also known as telematics. Advancements in telematics and usage-based insurance technologies have allowed insurers to gather more accurate data on driving habits and offer discounts to safe and reliable drivers. The fewer miles you drive, the less of a risk you have of getting in an accident and the more likely you are to receive a discount.
This coverage quiz can also give you an idea of what kind and what amount of coverage is right for you.
How to Cancel Your Car Insurance and Why You Shouldn’t
Canceling your car insurance policy is usually a quick process that requires a call to your insurer directly, but you should only consider doing this if you’re getting rid of your vehicle. Canceling your car insurance policy could lead to higher rates in the future if you plan on keeping the car.
Remove Yourself from an Auto Insurance Policy
If you are on a shared auto insurance policy, you can remove yourself from the policy while still keeping coverage for the primary driver. This can often help lower the cost of coverage, but you may not be able to legally drive the car once you are removed, as insurance will no longer cover you and the vehicle if an uninsured party is operating it.
SelectQuote Can Help You Find the Right Amount of Car Insurance Coverage for Your Needs
Whether you’re looking to save on your auto insurance policy or you’re interested in learning more about your coverage options, it’s always a good idea to compare carriers and rates. At SelectQuote, we’ll learn more about your car and your situation, ensuring you have an auto insurance policy that is right for you at a price that works for your budget. In just minutes, our licensed insurance agents will provide you with unbiased quotes from several of the nation’s most highly trusted carriers, so you can have the information you need to make an informed decision all in one place.
