Can You Pause Car Insurance?

Written By Melanie Green
Last updated October 13, 2021

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Insurance
October 13, 2021

Simple. Thrifty. Living.

Car insurance is a necessity for most people in the United States. It is required by law and protects you if you get in an accident. There are certain circumstances where you can put your plan on hold, but these are rare cases. Here are some reasons why you might want to pause your car insurance and when it would be appropriate.

If you plan to sell your car and go car-free for a while, you need to make sure your policy is canceled. The plan you have will not transfer to your next vehicle even if it’s with the same company. Instead, you file a cancellation form and then buy another policy when you get a new car.

If you call your auto insurance company to ask them: can you pause car insurance? You might be able to suspend your car insurance. This doesn’t cancel your policy, but you won’t pay for car insurance anymore. If you have a new car or a car with an auto loan still on it, you will not be able to suspend your car insurance plan. In the event that someone drives the vehicle, the car won’t be covered. Similarly, you won’t have coverage in the event the car is vandalized or stolen. However, it does prevent a lapse in coverage.

Your auto insurance provider may only allow you to suspend your car insurance in certain situations, such as when your car is in an undrivable condition, you’re traveling for an extended period, or your driver’s license gets suspended. In the case of a suspended license, you’ll need to inform your auto insurance company that this is the reason for your suspension. When you get back into the country or get your license back, you should let your car insurance company know immediately so you can resume your car insurance.

If you’re facing financial hardship, you can ask your auto insurance company for a hardship payment. This is a good time to ask them can you pause car insurance? If they offer you financial hardship payment delays, this is where they delay payments until you get back on your feet. In the event that your hardship policy ends, schedule a meeting with the claims department to discuss benefits that would be available to you in this situation.

In some cases, auto insurance providers will issue temporary car insurance coverage during the hardship. This is not standard procedure, so you won’t know about it until it happens. The only way to find out is to call your auto insurance provider and ask what would be an appropriate situation for them to temporarily pause your car insurance premium payments.

If you find your car insurance is too expensive, you have the option to reduce your coverage level. The lower level of coverage means you’ll have lower premiums. Ensure you are getting all the discounts available to you before choosing a reduced level of coverage.

Most auto insurance companies will allow you to reduce the amount of liability protection on your policy. However, reducing this level will also reduce your collision and comprehensive insurance coverage too. Collision protects your car if it’s damaged in an accident, while comprehensive protects against thefts or vandalism.

There are other ways you can reduce the cost of your auto insurance plan. These include raising your deductible, keeping your miles low, keeping a clean driving record, and keeping your car in good condition. As long as you make sure to confirm with your insurance company before you take any action, changing your car insurance should be no problem.

If you will be away from your home for an extended period of time, you can remove yourself from your family’s insurance policy instead of pausing it. This will allow the other people in your household to continue with the policy, but the rate should be lower. In the event that you’re a riskier driver, removing yourself from the plan can save money on monthly premiums. Once you return, you’ll have to add yourself back to the policy to stay compliant with the insurance company’s rules.

The only other option is to cancel your entire insurance policy. You must understand what will happen if you choose this route. If you have a lapse in coverage, the company will not provide any benefits or payout on claims due to this lack of coverage. Your future rates might increase as a result of this lapse.

When you cancel your car insurance policy, your car will no longer be covered by the plan. You’ll need to call and let your auto insurance provider know that you want to cancel your auto insurance plan. If you want to switch companies, make sure you do it before the cancellation date. If you cancel with one company but do not sign up with another, you will not be covered at all.

Canceling your auto insurance is an important decision. Auto insurance will protect you in the event of an accident and is required by law. There are circumstances when car insurance only needs to be temporarily paused. These include selling your car or going car-free for a while.

Each auto insurance provider has its own criteria and procedures for pausing and canceling your car insurance plan. You need to call your preferred company to ask them if they will temporarily pause your coverage. Keep in mind that the auto insurance company has the right to refuse your request. This means you cannot pause or cancel your coverage just because you want to. When you call your car insurance provider, they will ask for information about why you need to pause coverage and if there’s a grace period involved. They will also want to know if there’s a possibility of cancellation and the reason for cancellation.

Can you pause car insurance? It is possible to pause your car insurance policy by using one of these strategies, but you should know that not all companies will allow it. It can be beneficial if you’re traveling for an extended period, selling your vehicle, or going car-free. You won’t have insurance coverage during this pause, so be aware that you likely won’t have coverage during this time. If you do not resume your plan after the grace period ends, your auto insurance provider may cancel your policy.

About the Author

Melanie Green

I'm a professional freelance writer living in Tampa, FL. I've been freelancing full-time since 2012, maintaining key relationships with my clients through always aiming to exceed their expectations. I have an MFA in Creative Writing with a concentration in screenplay writing from National University, as well as a Bachelor of Arts in Writing. I love writing about a wide range of topics including movies, technology, food and business marketing.

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