If You Own a Car, But Don’t Drive – Do You Need Auto Insurance?

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Owning a vehicle is a big responsibility. Even if you never take it out onto the road, it tends to be a good decision to maintain proper auto insurance on it. This can help protect your investment. However, the laws on this differ from one state to the next. A vehicle not on the road may not legally have to have coverage. But, what should you do?

Protecting the Value of the Vehicle

Perhaps you plan to park a car in the garage for a few months to a year. You want to keep it, but you do not plan to drive it. In this case, you may not legally need auto insurance. But having it can prove to be very important to you. For example, if someone breaks into your home and damages the vehicle, you want to be sure you have coverage for it. Storm damage can also occur. With comprehensive car insurance, you have protection in place for it.

Protecting Valuable or Classic Vehicles

Most drivers should maintain a policy on their valuable older car. Antiques and vintage cars tend to have significant value. And, it is harder to obtain parts to make repairs on them. For this reason, your policy should reflect the value of the car and the way you use it. Most classic car auto insurance policies are affordable. You can choose a low mileage policy. This can reduce your costs significantly.

Is There a Chance Someone Will Take My Car onto the Road?

Another risk occurs when someone does venture out onto the road with the car. For example, a driver in your home may decide to see if the car still runs well. They get behind the wheel. And, they collide with a telephone pole. Worse yet, they may cause damage to someone else’s vehicle. In these situations, it is always wise to have a comprehensive policy, a collision insurance policy, and general liability coverage. Even just five minutes on the road can make it worthwhile.

If you are unsure what is right for you, discuss your options with your auto insurance provider. Find out what type and level of coverage is best for your situation. In many situations, your agent can work with you to find cost-effective car insurance. These policies can reflect the limited amount of time you operate the car.

FAQ’s About If You Own a Car, But Don’t Drive – Do You Need Auto Insurance?

Can I cancel my auto insurance if I don’t drive my car?

It’s not recommended to cancel your auto insurance if you own a car, even if you don’t drive it. This is because your car can still be at risk of damage or theft, and insurance can provide valuable protection.

What type of auto insurance do I need if I don’t drive my car?

If you don’t drive your car, you may be able to get by with a lower level of coverage, such as liability insurance. However, it’s important to check with your insurance provider to determine the best coverage for your situation.

Can I get a discount on my auto insurance if I don’t drive my car?

Some insurance providers offer discounts for low mileage or infrequent use of a vehicle. However, it’s important to check with your provider to see if you qualify for any discounts.

What happens if I don’t have auto insurance and my parked car is damaged or stolen?

If you don’t have insurance and your parked car is damaged or stolen, you will be responsible for covering the costs yourself. This can be expensive and may cause financial hardship.

Can I get auto insurance for a car that is not registered?

In most cases, you cannot get auto insurance for a car that is not registered. This is because insurance providers require proof of ownership and registration before issuing a policy.

Can I get auto insurance for a car that is not drivable?

Yes, you can get auto insurance for a car that is not drivable. This is because the car can still be at risk of damage or theft while it’s parked.

Can I get auto insurance for a car that is stored in a garage?

Yes, you can get auto insurance for a car that is stored in a garage. In fact, storing your car in a garage can actually help lower your insurance premiums since it reduces the risk of damage or theft.

Do I need to notify my insurance provider if I stop driving my car?

Yes, it’s important to notify your insurance provider if you stop driving your car. This can help ensure that you have the appropriate coverage and can prevent any issues with your policy.

What should I do if I plan to start driving my car again after a period of not using it?

If you plan to start driving your car again after a period of not using it, you should contact your insurance provider to make sure you have the appropriate coverage. You may need to update your policy or add additional coverage depending on your situation.

Can I temporarily pause my insurance on a car we’re not using?

Yes, it may be possible to pause your auto insurance if you won’t be using your car for a certain period. However, whether you can pause all of your coverage, depends on your state’s laws, your insurer’s rules, and your auto lender’s requirements. Before suspending your insurance, verify with your insurance provider and local laws to ensure the process is aligned with their guidelines.

Do I need insurance when borrowing or lending a car to someone?

When you don’t own a car but may occasionally need to borrow or lend one, there are specialized insurance coverage options available, such as non-owner car insurance. This type of insurance is offered by major insurance companies and serves to provide coverage for drivers who don’t own a car but may occasionally drive one.

When you’re lending your car to someone, the best practice is to add that person to your insurance policy. This will ensure that they have the necessary coverage while using your car, and it minimizes the risk of any potential issues arising during that time.

In both cases, it’s essential to consider the local laws and insurance requirements to ensure compliance and adequate coverage is in place when driving a car, regardless of the ownership status.

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