Yes, you can remove an auto from your policy if it is not operational / running. Your insurance company will let you take off your coverages however unless you have turned in your registration and license plates when you take the insurance off of it than in many states you will receive penalties for a lapse of insurance on a registered vehicle.

Also even if the vehicle is not running but you have a lien holder on it than you would normally have to keep Liability as well as Collision and Comprehensive coverages on the car per the requirements of your finance agreement.

So if your vehicle is no longer running and you have a lien holder you would need to speak to them about taking insurance off of it or lowering your insurance coverages. If your lien holder okays this, or you do not have a lien holder, than you would also have to check with your state's Department of Motor Vehicles about taking insurance off the car and how to do so without being penalized.

Likely as we mentioned you would have to turn in your plates and registration to take your insurance off the auto without receiving penalties such as fines and suspension of your registration and even your driver's license.