Can I Pause My Car Insurance

Canceling A Car Insurance Policy

Car insurance is sold in one-year or six-month terms in Ontario. There are no provisions to suspend a policy. Its expiry date is established at the time of purchase. The car insurance consumer has two applicable rights. Firstly, they have the right to cancel a policy at any time. This usually comes with an administrative fee from the insurer. Its pro-rated for the remainder of the term of the policy. While the driver saves money on future premiums, the cancellation fee reduces the amount saved.

Secondly, an insured motorist has the right to alter their policy at any time. This makes it possible to suspend elements of a car insurance policy, without canceling it outright. This is usually the most practical and economical way to go.

Interruptions in car insurance coverage can earn a driver the label of high risk in the eyes of the insurance industry. If a driver cancels insurance on the only car they drive, there is no continuous insurance coverage in their name. This may make insurance more expensive and harder to get at a later date.

Pros And Cons Of Pausing Insurance

• No one else may be able to drive your vehicle.
• Full coverage will likely be required if you lease or have a car loan.
• Without liability insurance, you could be personally responsible for the costs of an accident you cause while driving.
• You may not be eligible for comprehensive-only coverage if you have a car loan or lease.

Am I Tied Into This Agreement With My Insurer

Although youve signed an agreement to pay your policy over the year, theres nothing tying you into your car insurance provider. So, in much the same way you can cancel your insurance if you sell your car, you could call your insurer, tell them youre taking your car off the road, and have your policy cancelled.

Be warned, virtually all insurers will make a charge if you decide to do this but youll need to talk to your specific cover provider to get a full breakdown of what that cost will be.

Don’t Miss: How To Repair Tear In Leather Car Seat

Do You Need Insurance For Car That Doesn’t Get Driven

You may wonder if you need insurance for a vehicle that is not in use, even if it’s not kept in storage. For instance, suppose you’ve inherited an extra vehicle or your hobby car is disabled for an extended period of time while you rebuild its inner workings. Even if your car isn’t on the road, it may be a good idea to maintain certain coverages on it because mishaps can happen even if your car never leaves the driveway.

For instance, if you don’t have comprehensive coverage, you’ll need to pay out of pocket for repairs if your car is damaged by hail or a fallen tree. So, even if you suspend other coverages for a car you don’t drive, you may want to consider keeping comprehensive coverage. Your insurance agent can explain what coverages you may need or want to consider if you own a vehicle that’s not in use.

There’s a lot to consider when it comes to insurance for a car that you’re not driving. If you decide to reduce your coverage for a vehicle that’s in storage, be sure to set a reminder to revert to your former coverage levels when you expect to need the vehicle again.

Removing Yourself From The Policy

Instead of changing your coverage, you may be able to remove yourself from a family car insurance policy temporarily. This option is worth exploring if youre going away but others in your household will be driving the car.

This option can save you money if youre a riskier driver than the others on your policy because taking yourself off reduces the odds of a crash. However, if it wont save you money, theres little benefit to removing yourself, and its probably more convenient to stay on the policy. If youre not going away and continue to live with other drivers insured on the policy, this may not be an option. Many companies require all drivers listed at the same address to be included on a policy, or else be specifically excluded.

Removing yourself from the policy is not the same as being an excluded driver. If youre simply not listed on the policy, you can still drive the car. Excluded drivers arent supposed to drive the car, and may be required to prove they have other insurance in order to be excluded.

See what you could save on car insurance

You May Like: Why Is My Car Misfiring

Are There Consequences When You Cancel Or Suspend Car Insurance

While you can cancel your car coverage at any time, try to avoid canceling your coverage altogether. In some states, it is against the law, so check with your states laws. Additionally, when you dont have a car policy for a certain length of time it shows as a lapse in your insurance record, which insurers see as a risk factor. Even letting your policy lapse by a day between policies can raise your rates. You can also face severe consequences if you take your car out for a drive without an active policy.

In some situations, your insurer will let you suspend your car insurance temporarily, but your car wont be covered if you or someone else drives it. Anyone who drives it will be considered an uninsured motorist and will have to cover any expenses for any injuries or damages they cause unless they have their own car insurance.

Which Aspects Of Insurance Can I Suspend

Check with your insurer to see what coverages you can remove. Both comprehensive and collision insurance are optional in every state. You can cut out these coverages while still keeping the basic liability requirement as part of your policy, as long as you don’t have a car loan or lease. In addition to liability, some states also require personal injury protection or protection against uninsured and underinsured motorists . You may also need to keep those on your policy to avoid a lapse in coverage.

Recommended Reading: How To Get A Copy Of Car Registration

It Leaves You Without Rental Car Coverage

Canceling car insurance can also leave you without coverage when renting or driving another vehicle. If you rent a vehicle on your trip, for example, then you might not have insurance unless you have coverage through your credit card or your purchase supplemental insurance through the rental agency.

No Protection From Off

If you plan to store your vehicle outside, it may not be wise to pause your car insurance. This is particularly true if you already have comprehensive car insurance .

Heres an example:

A storm occurs and knocks a large branch off of a tree, which falls onto your vehicle. The branch causes extensive amounts of damage to the vehicles hood and windshield. If you have comprehensive car insurance, your provider will cover all or a portion of the damages. In contrast, if your car insurance is paused, you will have to pay for the repairs out of pocket.

Also Check: Should I Remove License Plate When Selling Car In Texas

Your Insurance Payment Agreement

Of course, its not just the law thats standing in your way if you want to put your insurance on hold theres also how you pay for your insurance.

Single the majority of people pay for their insurance monthly youre signing up to a credit agreement with your insurer or a finance company they work with. At the point of purchasing your cover, youll usually agree to 10-11 monthly instalments that spread the cost of your policy out.

Insurers cant simply pause and restart this agreement especially since they often work with another company to offer this facility.

What Is The Difference Between Canceling And Suspending Coverage

If you cancel your insurance, you have no coverage at all and will have a lapse in coverage that can cause increased premiums if you need car insurance down the line.

If you suspend your coverage, it pauses your coverage and avoids having a lapse in coverage. Unfortunately, your car isn’t covered in the event of theft, fire, or other damage.

If you finance your car, your lender may not allow you to cancel or suspend your car insurance.

Read Also: How Much Does A Car Salesman Make Per Car

Pausing Car Insurance If Youre In The Military

Active duty military members are the exception to the rule about pausing car insurance. Call your insurance company to let them know if you are on a military assignment for an extended period.

They may require documentation about your employment, but almost every insurer in the country has a procedure to allow military members to pause their car insurance.

Does Geico Raise Rates After First Accident

With Accident Forgiveness on your GEICO auto insurance policy, your insurance rate won’t go up as a result of your first at-fault accident. We waive the surcharge associated with the first at-fault accident caused by an eligible driver on your policy. GEICO Accident Forgiveness is per policy, not per driver.

Read Also: When Is The Best Time To Buy A Car

Looking For Cheap Online Auto Insurance In Georgia

Its understandable for you to want to reduce what youre paying for car insurance if you arent driving as much. In that case, you should look at ways to reduce or pause your insurance coverage before even considering canceling it. At Southern Harvest Insurance, we can work with you on ways to keep your coverage at the most affordable rates available.

To get a quote on affordable car insurance, call us at or visit us at one of our offices or get a fast and free car insurance quote online.

What Does The Law Say

While theres no law stating that you cant pause car insurance there is a very clear law that states every vehicle registered for use on the road must be insured. Continuous Insurance Enforcement became law in 2011, and it means your vehicle must either be insured or on the DVLAs Statutory Off-Road Notification register.

As such, youll struggle to find any insurance company who will simply let you call and put your cover on hold.

You May Like: How To Put Car In Neutral With Dead Battery

Can You Pause Car Insurance In Canada

Yes, many car insurance providers in Canada allow drivers to pause car insurance .

Please be aware that you cannot legally drive your vehicle on Canadian roadways if you do not have valid car insurance. This is something you need to keep in mind before deciding whether youd like to pause your car insurance.

Drivers should also be aware that some car insurance providers do see a voluntary suspension as a form of insurance cancellation. Cancelling your insurance can have serious consequences .

What Happens If My Insurance Is Cancelled Or Reinstated Or I Get New Insurance

Your insurance company must notify the DMV electronically if

• your insurance coverage is cancelled
• your insurance coverage is reinstated
• you get new insurance coverage

In your response to the DMV letter you must either

• prove that you have insurance coverage
• prove that you sold the vehicle
• prove that insurance coverage was not required

If you have insurance coverage, also ask your insurance company to file an electronic notice of insurance coverage with the DMV.

If you do not have auto liability insurance, you must surrender your vehicle plates to the DMV immediately.

Read Also: How To Get Out Of A Car Lease Early

Most Car Insurance Companies Will Raise Rates After A Lapse In Coverage

Car insurance companies dont want to encourage customers to cancel or pause car insurance coverage. Thats why they often punish customers who cancel their coverage.

If you temporarily cancel your coverage and try to renew your car insurance when you return from vacation, then you will likely face higher insurance premiums.

If youre paying $100 per month for car insurance before you leave on vacation, for example, and you cancel your car insurance for 6 to 12 months, then your car insurance company might increase premiums to $125 per month when you return.

There are even stories of some car insurance companies treating you like a new driver after a long lapse in coverage. If you let your car insurance coverage lapse for 1 or 2 years, for example, then you might pay significantly higher premiums when you renew your policy at least for the first few months until the car insurance company establishes some insurance history.

Compare over 200 auto insurance companies at once!

Secured with SHA-256 Encryption

What Are The Alternatives To Pausing Your Car Insurance

Instead of suspending your liability coverage when youre not using your car, there are alternatives to pausing your car insurance.

You can save money while youre not driving by reducing your coverage You may want to lower your liability limits or remove add-ons like collision insurance or roadside assistance, as you wont be using them.

You can pay for the miles you actually drive with usage-based insurance, which is available in some states. Your insurer may offer pay-per-mile insurance or you may be able to enroll in usage-based programs that allow your insurance company to track your driving.

Non-owner insurance provides liability coverage for bodily injury and property damage when you are driving a car you do not personally own.

You may qualify for discounts that can help you reduce your insurance premium.

You can cancel your policy if you sell the car. Your insurer may send you a cancellation letter to sign, and some may charge a cancellation fee. Make sure you get a copy of your policy cancellation. Its highly advised that you immediately buy a non-owners car insurance policy to avoid a rate hike when you decide to buy another car.

You may need to file an affidavit of non-use to notify your states DMV that you won’t be driving your vehicle.

Also Check: How To Undercoat A Car

Can You Backdate Insurance Cancellation

Most insurance agents, at one time or another, have received a request from a client to backdate the cancellation of a policy that is, make the cancellation of a policy effective at some point in the past. Backdating a cancellation enables the client to receive a refund on premiums paid for the policy.

Can You Put Your Car Insurance On Hold

Most states require all vehicles to have insurance coverage by law. If you own a car, you need to be insured in some capacity. Unfortunately, theres no way around that.

However, insurance companies are able to temporarily suspend your liability coverage if you wont be driving your vehicle. This saves you money because you wont be paying for coverage that you dont use.

Also Check: Car Shakes When Braking At High Speeds Not Rotors

Can You Pause Your Geico Insurance

Asked by: Zola Schmidt

GEICO does not offer the ability to suspend coverage. However, since you won’t need car insurance for a specific period, you can call GEICO directly at 1-800-207-7847 to discuss your options. … Then, you’ll need to reinstate your insurance or start a new policy when you return.

When Should You Suspend Car Insurance

You may be able to pause or reduce your insurance if:

• Youre putting your car into storage for an extended time
• You are traveling abroad
• You have a suspended drivers license
• You have an illness or injury that prevents driving
• Your vehicle is being repaired and you cannot drive it until it is fixed
• You are out of work and cannot keep up with your premiums

In any case, before you pause, suspend, or reduce your liability coverage, you may have to file an affidavit of non-use to notify your states DMV. You should also consult your lessor or loan holder to ensure that you dont violate any prior financing agreements, such as with a lienholder if you are financing or leasing the vehicle.

Not every insurer will let policyholders suspend coverage, or they may only allow it in certain situations.

Read Also: How To Charge Car Battery At Home

What Happens When You Cancel Insurance

What Happens When You Cancel Your Policy? When you cancel an auto insurance policy, your insurer will likely notify your state that you and your vehicle are no longer insured. … If you still have time left on the policy, your insurer may issue a prorated refund of the premium that you paid most recently.

Why Would You Need To Freeze Your Car Insurance

Car insurance is often a fairly large monthly payment that leaves our accounts and it can feel like wasted money if youre not driving your car.

As a result, thousands of people looking into pausing their car insurance whether thats for a week or two while youre away on holiday or for much longer periods, perhaps while your car is off the road, while youre using a different vehicle, or even if youre recovering from an injury or illness thats left you unable to drive.

The problem is, theres no facility offered by insurers to temporarily suspend your policy and a big part of why relates to the law surrounding car insurance.

Recommended Reading: Where Can I Get My Car Detailed