Do You Need Auto Insurance if You’re Not Driving?

Can You Pause Car Insurance if You're Not Driving?

You can pause your car insurance when you won't be driving your car for a certain period, typically at least 30 days. But you generally can't pause your car insurance without permission from your insurer, your state or your lender (if you're financing your car). And some insurers may not allow you to put your car insurance on hold.

In addition, you may need to provide an "affidavit of non-use" to your state's department of motor vehicles if you don't plan to drive your car for a certain period, such as 90 days.

What Types of Car Insurance Coverage Are Required?

The types of car insurance you're required to purchase are dictated by state laws and your lender's or leasing company's requirements. Here's an overview of the types of coverage that you might need.

• Liability: In most states, you must purchase auto liability coverage. Liability coverage takes effect when you cause an accident that injures somebody or damages their vehicle or property.
• Collision: The collision portion of a policy covers damage to your car if you hit another vehicle, an object or an animal. If you borrowed money to buy your car or you're leasing it, you usually must obtain collision coverage.
• Comprehensive: Comprehensive coverage kicks in when your car is damaged in a natural disaster or it's stolen. As with collision coverage, lenders and leasing companies normally require you to buy comprehensive coverage.
• Uninsured/underinsured motorist (UM/UIM): If a driver who's uninsured or underinsured causes an accident, this part of your policy covers treatment of bodily injuries or repair of property damage. In some states, you must buy this coverage.
• Medical payments coverage (MedPay)/personal injury protection (PIP): The medical payments part of your policy pays medical bills when you or your passengers have been injured in a car accident. In some states, you might have access to personal injury protection instead of medical payments coverage. PIP may go beyond medical expenses to cover lost wages and other accident-related costs. Your state might require that you carry MedPay or PIP coverage.

Learn more: Minimum Car Insurance Requirements by State

Pros and Cons of Pausing Your Car Insurance

Should You Pause Car Insurance?

Before you pause your car insurance, consider how long you won't be driving your car. If it'll be less than 30 days, state laws, your insurer's practices or your lender or leasing company's rules could keep you from freezing your car insurance.

But if the period will be more than 30 days, pausing your car insurance might be a good idea. The amount of time you're allowed to pause your coverage will depend on what constraints are in place. Remember, too, the cancellation period might be capped.

Furthermore, don't forget that you might be required to keep some of your coverage when you're taking a pause. For example, you may be forced to maintain state-mandated liability coverage but still be able to pause the remaining coverage.

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Ways to Reduce Car Insurance Costs

Here are five ways to reduce car insurance costs:

1. Cut back on coverage. Canceling coverage you don't need can decrease your auto insurance premium. For example, you may want to get rid of optional coverage such as roadside assistance or rental car coverage.
2. Investigate discounts. Car insurers often provide a variety of discounts. You might be eligible for discounts if you've been in no accidents during a certain period or you've been a loyal customer of your insurance company.
3. Bundle your coverage. Some insurers will cut your premium if you purchase at least two types of insurance from them, such as auto and home.
4. Raise your deductible. Increasing your deductible from $200 to $500, for example, could decrease your car insurance premium. Just be sure that you have enough cash on hand to cover the increased deductible in case something happens.
5. Shop around for coverage. Compare quotes from at least three car insurers to find the best coverage for your situation.

The Bottom Line

If you won't be driving your car for an extended period, you might be able to pause your car insurance, but it's not always straightforward. Rules vary by insurer, state and lender, and you still might need to keep certain coverage or meet certain requirements like filing an affidavit of non-use. Before deciding to pause your car insurance, take time to weigh the benefits and risks.

If you're shopping for car insurance, compare quotes using Experian's insurance comparison tool. You can review options from several insurance companies to ensure you're getting the right price for the right coverage.