Do you have to keep a vehicle insured as long as you own even if you are not driving it any more? The answer isn’t straight forward as it depends on circumstances, usage and authorities. Registered keepers have to account for it and follow the state requirements. When you buy at least liability coverage you comply with the laws and you can prove it if anyone asks. Let’s have a look at various scenarios to cover the topic from all angles. So, what are the obligations in the following situations?
When Can I Drop Coverage for a Car I Don’t Drive?
Laws and regulations differ on this subject. If an automobile is kept on public roads most states would want to see a copy of a liability schedule. For example, if it is left on the street and children cut themselves while playing around it, you would be liable. And therefore you would have to keep at least the minimum required if you cannot lock it up in a garage or pull into a privately owned storage space.
If you want to drop insurance you may have to keep the car on a private property. Also, you or anyone else shouldn’t take it for a spin on any public road under any circumstances until you reinstate the coverage.
Do I Have to Inform DMV as to Why I Don’t Insure my Car?
Department of Motor Vehicle keeps track of these things. When you suddenly drop the policy they will probably know about it. Many states would want some sort of declaration from you when you want to relinquish the policy. They would probably require you to return license plates as well. In other words, you may have to follow certain rules and procedures if you want to keep a vehicle but not pay the premium. If you ignore these rules you will receive warning from local DMV. They will want you either confirm new policy details or fill out an “off road” form. If they don’t receive anything within thirty days you will receive fines and further enforcement.
How to Insure Cars that Are Driven Occasionally?
If you are considering using these automobiles on occasional bases you may be able to find very affordable policy for rarely driven autos, especially if you have another one for everyday use. This could be a classic, a family van that is used only during holidays or an open-top that is for the summers. If you own a typical car but don’t use it much you may claim discounts on the bases of low mileage. If it is a classic, they usually attract low premiums, as they are not expected to be a regular ride.
Insurance for a Never Driven Vehicle that Stays in the Garage
In that case, you may be able to just keep comprehensive coverage and give up the rest, assuming it is worth some money. This makes sure that it is protected for theft, flood, fire and so on. Since it is off the road you may not need liability and collision and save money for something else.
So, you need to consider it is current location, usage and value to decide which option to choose, as outlined above.