If you have auto insurance on your vehicle, you probably have it for a number of reasons. It protects you from lawsuits, and it is a legal requirement. It also provides compensation if you wreck your car, but do you need coverage if you will not be driving your car for the next six to twelve months? If you will not drive at all during this time, here are some tips to help you know what to do with your auto insurance.
Contact Your Insurance Agent
People might not drive for a few months or even a year if they move temporarily to a city or when traveling extensively. If you know that you will not need your car for the next few months, call your insurance agent. Your agent can help you determine your options and how to handle your policy.
Why You Should Not Cancel Your Coverage
The agent will probably tell you that you should not cancel your coverage completely. First, if you have a loan on your car, you might not be able to change your coverage. Your agent will talk to you about this if you have a car loan. Secondly, the agent will likely suggest changing your coverage instead of canceling it. When you cancel your car insurance, your car has no coverage on it at all. If something happened to it while you were not driving it, you would be responsible for the damage.
The other thing to know is that canceling your coverage leads to a lapse in coverage. While this might not bother you, it will bother the insurance company that offers you a policy when you need coverage once again. Insurance companies view lapses as risks, and they might charge higher rates for coverage.
Switch the Coverage
One of the best things you can do for this situation is to switch the coverage on your car. If you keep comprehensive coverage only on the policy, it will keep you with coverage and offer the type of coverage you need. Comprehensive covers theft, vandalism, and other things, which is ideal for a car you will not drive for a while.
When you decide to park a car for a while, you might not need the same coverage as you had when you were driving it. If you have questions about changing your insurance coverage, contact a company like Kesner Insurance Agency Inc.