Car Insurance?

[tee]

Since I won't be driving for six-ish months during my thru and I'd like to save money, I've thought about cancelling my car insurance. Does anyone have experience cancelling or putting a hold on their car insurance? Or have you just chalked it up as another home expense?

[kayak karl]

in NJ if you cancel insurance you must turn in the tags also. if a car has no tags it must be stored indoors or under a cover. do you have a loan on it?

[4eyedbuzzard]

I'f I didn't have and/or need collision and comprehensive, or if I could park the car away from the possibility of someone/something hitting it, I would definitely consider doing it if the car was parked somewhere safe. Note that if the vehicle is financed you may be required by the lien holder to maintain coverage, and you might lose discounts from your ins co. for being a continuous customer.

[Tuckahoe]

Something else to think of is that many insurance companies will consider a lapse in insurance the same as having not been insured previously, and you will lose any dicsounts based on continuous coverage, safe driving, age, and etc. You might find that actually maintaining your policy to be much cheaper in the long run, rather than dropping it for short term savings.

[HooKooDooKu]

As Karl points out, the first question is what is the minimum insurance you're required to have due to
1. Legal requirements (many states now require a minimum amount of liability insurance)
2. Loan requirements (many lenders require collision and comprehension)

Next, you have to talk to your insurance agent to determine what effects changes in your insurance can have now and down the road.
1. Is there a 'multi-policy' discount you are getting because the same company insures your car and your home
(i.e. drop your car insurance and home owners insurance might go up)
2. Many insurance companies provide discounts or other perks for continual coverage. Drop the insurance for 6 months and when you go to add it back on, you might your rate has gone up.

Plus, insurance companies can modify your rate based on how much the car is used. So you might be able to simply change the status of your car and get something of a discount.

In any case, talk to your insurance agent. There's too many variables for someone to answer your question over the internet.

[MuddyWaters]

Between depreciation, and insurance, it surpasses the tax on another vehicle purchase.

You could sell the car and come out ahead. Just buy another when your done. One less thing to worry about.

But it gets tricky.

In some states you have to have car insurance to even have a drivers license. You HAVE to be listed on someone insurance policy to have a license. Your license could be revoked as well by giving up insurance.

[leaftye]

Something else to think of is that many insurance companies will consider a lapse in insurance the same as having not been insured previously, and you will lose any dicsounts based on continuous coverage, safe driving, age, and etc. You might find that actually maintaining your policy to be much cheaper in the long run, rather than dropping it for short term savings.

This can be a big deal. My insurance has a "stored" option that would only cost about $30 for the duration of a thru hike.

[Coffee]

In some states you have to have car insurance to even have a drivers license. You HAVE to be listed on someone insurance policy to have a license. Your license could be revoked as well by giving up insurance.

Several years ago, I moved across the country and didn't have a car for about six months. I purchased a "non owner liability" policy to cover liability in the event that I rented a car or borrowed a car for a short time. That policy was very cheap... Less than $100 for six months if I recall correctly. And it kept me in the good graces of the DMV and protected my assets in the event of an accident during those rare times I drove.

[Valley Girl]

The stored option will cost me 8.00 per month

[Starchild]

I kind of wished I would have done that in some form, just asking may have put me in a temporary lower rate catagory. I would not want to outright cancel it for the reasons mentioned above. However I did drive my car about 2/3rd of the way thru the hike as I was hiking past my home and spent 3 nights there (while still hiking, no zeros there).

[Coffee]

At the very least it is a good idea to tell the insurance company that mileage will be low for the year (under 7500 miles gets me an annual discount) and that the car will not be used to commute to work or school (usually good for another discount).

[tucker0104]

When I was in the navy and I went out to sea, I would use the storage option as previously mentioned. It is cheap and protects it from storage disasters.

[tee]

I own my car outright, so no potential problems with liens or anything. I'll look into requirements in Illinois, but the storage option or low mileage sound like good options for me. I'd be leaving my car at my parents house, so they'll probably drive it a bit, just to make sure everything keeps running properly.

[jred321]

Another thing to consider is just lowering your coverages to the minimums and raising your deductibles. Then you'll still keep your insurance but you'll save a big chunk of change.

[rhjanes]

If someone drives the car, make sure they drive it for say 30 minutes.....driving it. THat way, all systems are used and warmed up. Burns off moisture in axles, transmissions, make sure to turn on the heater, even in summer, to circulate the coolant into the cabin heat system.
We had someone who "just started" a car for us. Like once a week, let it run like 5 minutes and turned it off. Did that for like 3 months. Did more damage than not starting it! Didnt get anything hot, ran the battery down more (just idleing, doesn't really charge a battery after the worst thing you do it it, use it to start a car).
Also, most state also issue a "state ID". Not a drivers license, but proof of who you are. but it sounds like you are lowering milage, storage, etc and will keep your license (I would).

[Odd Man Out]

I would take my kid's cars of insurance when they were away at college for months at a time. I would just call my agent and they took care of it. If they were home for break, they could put the insurance back on for a few days. They said they couldn't turn it on and off too often, but it was no problem as long as it was off for at least a month. In each case, we kept comprehensive coverage, but that was cheap. This was in MI which has no-fault insurance so YMMV. My biggest problem was that the car was in bad shape after of few months of non-use. If it is parked at a trail head, not much you could do about it. But if you are leaving it at home, see if you can have someone drive it (with the insurance back on) for a day or two every couple of months.

[Dogwood]

To Leaftye, Valley Girl and Tucker did you have to own your vehicle outright to get the discounted storage option?

[Astro]

I have done four Temporary Duty Assignments in the past from four months to a year. I worked with the Insurance agent to significantly reduce the rate. Also has some one drive them around the block and run for a little at least once a month.

[leaftye]

To Leaftye, Valley Girl and Tucker did you have to own your vehicle outright to get the discounted storage option?

I don't recall my insurance company asking me, but I did own it outright.

[Nuggz]

I have a truck, car and motorcycle. I used to cancel the insurance on the motorcycle and car in the winter since I drove neither, about 5 years ago they started threatening to suspend my license for driving a vehicle without tags. Its a PITA, but I turn in my tags for the bike in the winter.