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The article has been updated successfully but requires approval before it is published.Last Updated 26th of August, 2010
Do I have to maintain an auto insurance policy on a car that doesn't run?
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The question should not be over whether or not your car runs, but whether or not it has car registration. Every vehicle with registered license plates must, regardless if it runs or not, maintain auto insurance coverage.
If you allow your auto insurance policy to drop while the car has valid vehicle registration you will put yourself at risk of being ticketed. Law requires insurance companies to notify local DMV officials whenever a driver allows his or her car insurance to lapse. Depending on your state you may then be notified by the DMV to provide proof of auto insurance coverage or face suspension.
You may also want to check with your insurance provider if it offers any adjusted rates. Some auto insurance companies will give you a lower "off-road" quote in order to keep your business rather than lose it.
If you opt to cancel, be sure to check with your insurance provider about cancellation policies. If you've been paying in installments your insurance company may insist on you paying off the full balance before honoring your cancellation wishes.
If you allow your auto insurance policy to drop while the car has valid vehicle registration you will put yourself at risk of being ticketed. Law requires insurance companies to notify local DMV officials whenever a driver allows his or her car insurance to lapse. Depending on your state you may then be notified by the DMV to provide proof of auto insurance coverage or face suspension.
Canceling Insurance for Inoperable Vehicles
You do have the option to cancel your car insurance if you decide to take your car off the road for mechanical reasons, but before notifying your insurance company, you must cancel your vehicle registration. Depending on your state this may require nothing but a phone call to your DMV, or physically surrendering the car's license plates. If you cancel the auto insurance first you'll be in violation of your state's mandatory auto insurance laws.You may also want to check with your insurance provider if it offers any adjusted rates. Some auto insurance companies will give you a lower "off-road" quote in order to keep your business rather than lose it.
If you opt to cancel, be sure to check with your insurance provider about cancellation policies. If you've been paying in installments your insurance company may insist on you paying off the full balance before honoring your cancellation wishes.
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