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- Full policy suspension is rare: Most insurance companies do not let you simply pause your entire policy for a vacation; cancellation is usually the only way to stop all coverage. However, total cancellation has downsides.
- Coverage may still be required: In most states, insurance (even if you won’t drive) is a legal requirement to maintain vehicle registration. Canceling without proper steps could lead to DMV penalties.
- Alternatives exist to cut costs: Instead of a full suspension, many insurers let you reduce coverage — for example, dropping collision and keeping comprehensive to protect against theft or damage while parked.
- State rules and DMV filings matter: Some states allow you to declare your vehicle not in operation with an affidavit of non‑use, which can become part of legal strategies to reduce insurance requirements while parked.
- Financing complicates suspension: If your car is leased or financed, your lender may require you to maintain certain coverages (especially comprehensive and collision), even when you’re not driving.
When Amanda left for a four‑month overseas assignment, her car stayed parked in the garage the entire time. Paying full insurance for a vehicle she wasn’t driving felt wasteful, so she called her insurer to ask if she could “pause” her policy.
The answer surprised her. While insurers rarely allow policies to be put on hold, state laws — not insurance companies — often determine what options are actually available.
Whether you can reduce coverage, file a non‑use form or must keep insurance active depends entirely on where the car is registered, making it essential to understand the rules before you leave town.
Can you put insurance on hold?
The short answer: No — you can’t just pause an active auto insurance policy for a set time like a streaming service subscription.
Most insurers don’t offer formal policy suspension. The traditional policy remains in force, and the only way to completely stop paying premiums is to cancel the policy entirely.
However, canceling poses several risks: Coverage gaps that can lead to higher future rates, potential DMV penalties for uninsured registered vehicles, and lender requirements if you’re still paying off the car.
Options to save money while you’re away
1. Reduce your coverage
Instead of canceling, many insurers let you lower coverage levels temporarily. For example, dropping optional collision coverage while keeping liability and/or comprehensive can reduce your premium without creating a full coverage lapse.
2. Affidavit of non‑use
In some states, you can file a non‑use affidavit with the DMV. This tells the state the car won’t be driven while you’re away — which may let you legally adjust or lower required coverages without penalty.
3. Storage or seasonal policies
Certain insurers or states offer “storage” or “seasonal” insurance options designed for cars parked long‑term. These may keep protection against theft or weather damage while trimming what you pay.
4. Cancel carefully (if needed)
If you do cancel, make sure you follow state rules about returning plates or notifying the DMV; failure to do so can lead to fines or license/registration suspension. And understand that cancellation often leads to a rate increase when you restart coverage due to a lapse not reflected on your record.
How to approach it
- Talk to your insurer early about your plans and ask: what options do you have?
- Check state laws and DMV requirements: Some require continuous insurance while a vehicle is registered.
- Consider temporary coverage reductions or storage insurance instead of full cancellation.
- If financed or leased, verify lender requirements: You may be required to keep certain coverages regardless of use.
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State-by-state rules for filing non-use or suspending insurance
Rules for putting a car “out of use” aren’t set by insurers alone; state DMVs dictate them. Some states allow drivers to formally declare a vehicle as non‑operational, which can reduce or eliminate insurance requirements while the car is parked. Others require continuous coverage unless you surrender your plates.
The table below shows how rules vary by state and what actions drivers may need to take before adjusting coverage.
| State | Allows non-use filing? | Filing method | Insurance impact |
|---|---|---|---|
| California | Yes | Affidavit of Non-Use (REG 5090) | Lets you suspend DMV registration and insurance temporarily |
| Florida | No | Must maintain insurance or surrender plates | No suspension option; cancel = registration penalty |
| Texas | No | Insurance required unless plates surrendered | Cancelling without turning in plates can lead to fines |
| New York | Yes | Must surrender plates to DMV | Allows insurance pause only if plates are returned |
| Illinois | Yes | Non-Use Form (VSD 365) available | May reduce coverage obligations |
| Arizona | Yes | De-insure option via MVD | Lets you declare non-use and avoid fines |
| North Carolina | No | Insurance must be continuous | Lapse triggers DMV penalties and possible license suspension |
Always check your specific state’s DMV site for updated requirements and processes.
Pre-trip checklist for pausing or reducing car insurance
- Confirm your travel dates and vehicle usage plan. Will the car be parked long-term, or used occasionally?
- Contact your insurer at least two weeks before your trip. Ask about:
- Dropping collision temporarily
- Switching to comprehensive-only
- Availability of storage or seasonal coverage
- Options if you’re leaving the state or country
- Check state DMV rules.
- Can you file a non-use affidavit?
- Do you need to return your license plates?
- Will a lapse trigger penalties?
- If your car is financed or leased, contact the lender.
- Some lenders require continuous full coverage.
- Decide: reduce, pause, or cancel?
- Reduction (lower coverage) = fewer risks
- Cancellation = risk of future premium hikes and DMV issues
- Storage policy = ideal middle ground
- Document all changes and confirmations.
- Save proof of filings, communications, and updated declarations from your insurer
- Before you return:
- Notify your insurer to restore full coverage
- Re-register or reactivate your plates if required
Bottom line
You usually can’t “put car insurance on hold” like pausing a subscription, but you can explore legal alternatives to reduce costs if your vehicle won’t be used while you’re on a long vacation.
Reducing coverage, filing non‑use affidavits or using storage insurance are often safer and more cost‑effective than cancellation, and they help you avoid future rate hikes and legal penalties.
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