Do you need auto insurance if you don’t drive your car?

In most cases, if you own a car, you are still required to have auto insurance coverage, even if you don’t drive the vehicle. The laws and regulations regarding auto insurance vary by country and state, but in general, owning a car typically comes with certain financial responsibilities, including maintaining insurance coverage.

There are several reasons why you may need auto insurance even if you don’t drive your car. First, accidents can happen even when a car is not in use, such as theft, vandalism, or damage caused by natural disasters. Auto insurance can provide coverage for these types of risks. Additionally, if you have a loan or lease on the vehicle, your lender or leasing company may require you to maintain insurance coverage as a condition of the agreement.

If you own a car but don’t plan on driving it, you may consider canceling your auto insurance. However, before making a decision, it’s important to check the legal requirements and consult with your insurance provider. Keep in mind that canceling your insurance may leave your car uninsured against risks like theft, fire, or damage caused by other non-driving-related factors. Also, when you do decide to drive the car again, you’ll need to reinstate your insurance before taking it on the road.

If you have a car that you don’t drive, some insurance companies offer specialized policies known as “storage insurance” or “comprehensive-only coverage.” These policies provide coverage for non-driving-related risks like theft, fire, or damage caused by natural disasters while the car is in storage. This type of coverage is usually less expensive than standard auto insurance but typically doesn’t provide liability coverage while driving.

If your non-driven car sustains damage and you don’t have insurance coverage, you will likely be responsible for covering the repair costs out of pocket. Without insurance, you won’t have the financial protection to help mitigate the expenses resulting from theft, vandalism, or other non-driving-related incidents. It’s important to consider the potential risks and costs before deciding to forego insurance coverage for your car.

Some insurance companies may offer the option to suspend your auto insurance coverage temporarily if you don’t plan to drive your car for an extended period. This is often referred to as a “storage suspension” or “laid-up coverage.” It allows you to maintain comprehensive coverage for non-driving-related risks while reducing or suspending the liability and collision coverage during the period of non-use. However, the availability of this option and the specific terms may vary among insurance providers, so it’s important to check with your insurer for details.

If someone else will be driving your car while you don’t use it, it’s generally advisable to maintain auto insurance coverage. Most insurance policies extend coverage to permissive drivers, meaning individuals you give permission to drive your vehicle. By having insurance in place, you can help protect yourself from potential liability if an accident were to occur while someone else is driving your car. It’s crucial to review your insurance policy or consult with your insurance provider to ensure the coverage extends to permissive drivers.

Some insurance companies offer discounts or lower rates for cars that are not driven regularly. These discounts may be available under specific circumstances, such as if you can demonstrate that the car is stored in a secure location, equipped with anti-theft devices, or not driven for an extended period. It’s worth reaching out to your insurance provider to inquire about any potential discounts or reduced rates for non-driven vehicles.

Insurance rates are typically based on various factors, including your driving history, location, and the make and model of your car. If you don’t drive your car, your insurance rates may be affected differently depending on the insurance company and their underwriting guidelines. Some insurers offer discounts for low mileage or non-driven vehicles, while others may consider your car’s risk factors, such as its vulnerability to theft or damage, when determining your premiums. It’s best to contact your insurance provider directly to understand how your rates may be affected if you don’t drive your car.