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Q

If I have a vehicle that is not being driven, am I still required to carry some type of insurance on it?


A

If you own the car outright and are willing to turn your plates and registration back to the state, then you should be able to take car insurance off the vehicle.

Most states require that while your car is registered you keep at least the state minimum liability limits on it. If you fail to do so, even if you are not using the car, you may receive penalties, which typically are fines and/or registration suspension.

If you are taking a car off the roadway for a period of time, then contact your state's Department of Motor Vehicles (DMV). They can tell you what is required of you to be able to take your auto insurance off of the vehicle.

Some states allow you to suspend your registration and insurance under a planned non-operation (PNO) plan, which can make it less of a hassle to take these items off and then put them back on your vehicle when you do use it. Ask your DMV if they have an option like that available to you.

Even if you turn in your registration and plates to your DMV, you may still have to carry auto insurance on your vehicle if you have a lienholder. If your car is leased or you have a car loan, then your lienholder will require you keep full coverage on it.

If you really want to drop down your insurance though, speak to your lienholder to see if they will allow you to carry only physical damage coverages, comprehensive and collision.

If this is permitted by your lienholder then there are some car insurance companies that will allow you to purchase only the coverage needed to satisfy the lienholder. Both the lienholder and insurer may have specifics you have to follow, such as the car is required to be kept in a secure location like a storage facility.

If this last scenario is allowed, then the need for a registration and liability insurance may not be needed.

Whatever you decide, to keep insurance on the vehicle or take it off for a while, when you do need to shop for affordable auto insurance, use CarInsurance.com to automatically find the best rates available.

We offer multiple company insurance rates for personal auto insurance and the ability to purchase from one place; we are ahead of other online insurance companies. Start your free auto insurance quote here.


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