You may be able to suspend some or all of your car insurance if you're going to be off the road for an extended period of time, depending on the state and the insurer. Comprehensive and collision coverages are optional across the country, so you can remove them at any time if you don't have a loan or lease for a car. Depending on your state, you may need to file an affidavit of non-use to notify your state that you will not use your vehicle on public roads. If you plan to take your car off the roads for some time and don't have a lease or loan, you can suspend some car insurance coverages to save money, without completely canceling your policy.
When insurance companies talk about “pausing” or “suspending” their auto insurance coverage, what they really mean is that they are reducing their policy solely to comprehensive coverage. The only way to stop your car insurance is to cancel your coverage in its entirety, which you should only do when you change your policy or get rid of your car. But if you just changed insurance or sold your car and you're no longer driving, you can cancel your policy. You'll likely be asked to maintain a minimum level of comprehensive auto insurance coverage and car collision coverage, in addition to the state-mandated liability coverage, even if you don't drive your car.
Your insurance company can suggest a payment plan or other option that will still allow you to drive your car. Understanding the pros and cons (and the financial implications) of stopping your car insurance will help ensure that you make the right decision for your driving needs. You can cancel your car insurance policy if you no longer have a car or have purchased a new policy somewhere else. If you stop making your car insurance payments and your policy is canceled for non-payment, future insurers may consider you a high-risk driver and, as a result, charge you higher premiums.
If you have a car that you're never really going to drive, you might want to consider compensation-only coverage, also called car storage insurance, which covers the types of damage that can occur while you're storing your car and not driving. Maybe you're storing your summer car, you're traveling, or you want to remove a less used vehicle from your car insurance in Toronto. Even if you're not going to drive for a while and want to avoid paying for coverage, you can't exactly pause your car insurance.
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