Want to Take A Break from Your Car Insurance? Stay in the Know

Taking off for a sightseeing trip overseas? Serving in the Military? Leg in traction and driving isn’t going to be high on your list of ‘things to do’ for a long time? Well, paying for auto insurance seems to be a waste during those times that your car will just be gathering dust. However, there are some things you should know before you run out and cancel your policy.

First, you have to decide what you are going to be doing with your vehicle since you won’t be driving it. If you are putting your car in storage while it is not in use, then consider decreasing the amount of insurance you have on the vehicle. For instance, you may want to take the liability coverage off of your policy since you will not be driving the car. This way you are not paying for auto insurance coverage you do not need, but not leaving a gap in your insurance history.

If you are in the military and you have been called up for service, many companies offer special programs for military service personnel that are being deployed. Often there are few penalties for canceling your auto insurance, and those same companies make it simple to reinstate your policy upon your return. Most auto insurance providers only require documentation of your deployment and a letter from your commanding officer to make you eligible for these programs. Check with your insurance provider about your options if you are in the military, and have plan for what to do before your deployment and upon your return.

Though there are special circumstances for military personnel, if civilians cancel their auto insurance policies and go to obtain another policy later, they could be subject to higher costs. Auto insurance providers look at your insurance history to help in determining risk, so any gap in your insurance company can result in your being put in a higher risk group. Most auto insurance providers consider those people with gaps in auto insurance coverage a higher risk.

This higher risk group classification can cost you financially when you go to purchase an auto insurance policy later, ask risk is proportionate to your premium. However, even lowering your coverage can result in your paying a higher premium later when you go to restore the level of coverage. Make sure you discuss the possibilities with your agent or broker.

Unfortunately, the situations where you will be taking a break from driving your vehicle are usually the ones in which you do not really want to think about your auto insurance at all. However, there are both benefits and downfalls to taking a break from your insurance policy, and you need to weigh them both. If you are in the military, remember to check with your insurance company for programs available to you. If your break from driving your vehicle is for other reasons, it is important that you sit down with your agent or broker to discuss your options and the cost to you before you take any action on your auto insurance policy.

Want to Take A Break from Your Car Insurance? Stay in the Know

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