Keeping insurance over periods of storage (1/1/11)

Tom and Ray blew it in recommending the woman going on a long bike trip keep her insurance in force (1/1/11). For long periods, if you’re not going to have the car driven, you can turn off collision and liability but keep comprehensive on the car, which is very cheap. I do this with my pickup that I only use for dump runs and emergencies, and it’s only maybe $25/ year.

I think that depends on the state/municipality you live in. In my state you have to keep a minimum of liability coverage if you want to keep your tags on the vehicle. If you turn in the tags and later want to re-register the vehicle, it has to pass inspection again, which on an older vehicle could cost more than the vehicle is worth.

Good idea, and I often recommend it, but I try to remember to tell the to talk to their insurance company about it before doing it.

I Do The Same. I Have Too Many Cars To Drive All At Once. Some Are Summer Vehicles And Some Winter. I Suspend Everything But Comprehensive On Parked Cars, With Just A Phone Call.


If the woman is still making payments to the vehicle, despite it not being used, then she’s required by the bank to keep full coverage on it.

So what’s your game plan if you total someone’s Ferrari and turn the driver into a quadriplegic on the way to the dump?

Oops, Good Thought Bscar. I Don’t Do Car Payments (Or Any Payments, For That Matter) So I Wasn’t Thinking Of That, But You Are No Doubt Correct.


I would think, as Mr. Cheap pointed out, that in most places, the liability insurance requirement is tied to the vehicle registration. That being the case, the only legal way to remove the liability insurance from the vehicle would be to turn in the plates.

You’re right, Click & Clack’s home state being one of them. Try to drop your auto insurance in Massachusetts, and the first thing the agent asks for is the receipt on the plates you got turning them in to the RMV. No plates, no cancel, and they keep right on billing you even if you tell them you don’t want insurance anymore, and it’s completely legal. Nice cozy little deal the insurance companies and the Commonwealth have, there. Of course, you can also transfer coverage to a different company. But you have to keep your insurance going.

There’s another reason it can be a bad idea to drop car insurance when you’re going away for a while, depending on your insurance company, your personal situation with them, and all the usual car insurance variables: you may lose preferred rate discounts. You may jump into a high risk category and rate upon returning because you are not currently insured.

The best thing to do is to discuss the situation with your insurance company. Good thing they never lie and only have your best interests at heart, huh?? :wink: