Can I suspend my car insurance for a month?
Suspending car insurance is different with every car insurance company. Keep in mind that you won't be protected from theft or natural disasters during the suspension.
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Joel Ohman
Founder & CFP®
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...
Founder & CFP®
UPDATED: Jul 8, 2023
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jul 8, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- There are many reasons you may want to suspend your car insurance policy for a month
- All insurance companies have their own rules regarding policy suspensions
- Many insurance companies will allow you to change your coverage options at any time
There are many reasons you may want to suspend your car insurance policy for a month. Perhaps you’re going on an extended vacation, so you won’t drive your vehicle for three or four weeks.
If you’re called to military duty or sent to another country for a business trip, it may seem like a waste to pay for car insurance while your vehicle is parked.
Alternatively, you may know that you can’t afford to pay your car insurance one month and hope to pause your policy rather than allowing an insurance lapse for nonpayment.
While most auto insurance companies won’t allow you to temporarily suspend your insurance, they may allow you to temporarily reduce coverage. Car insurance is legally required in most states so you cannot put your policy on hold. You can cancel your car insurance policy if you don’t own a car anymore or have bought a new policy elsewhere.
However, you may be able to reduce your coverage if you’re not planning on driving your car for an extended period of time. You will still need to keep your comprehensive coverage to protect your vehicle from damages not related to an auto accident. This way you can avoid a coverage gap and keep any insurance discounts you currently have.
Read the guide below to determine whether suspending your insurance is in your best interest.
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Contact your car insurance company
All insurance companies have their own rules regarding policy suspensions, so your first step is to give your insurance broker or the company’s customer service line a call.
Inform them of your current or upcoming situation, and ask them what options are available to you.
Some companies may allow you to cancel or temporarily suspend your policy, but they will likely report that information to your state’s Department of Motor Vehicles.
In South Carolina and many other states, companies now report electronically, so the state will know almost automatically. You may need to turn your license plate in until you have reinstated your auto policy or secured a new one.
If a suspension is approved, you aren’t covered if the vehicle is stolen or damaged. Even when parked in a safe place, the weather and other unexpected circumstances may cause damage, leaving you with repairs to cover out of pocket.
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Consider your alternatives
If your insurance company won’t allow you to suspend your policy, there are some other things that you can do to plan ahead. Some of these options come with consequences, so you have to determine what’s best for your situation.
— Drop to liability coverage only
Many insurance companies will allow you to change your coverage options at any time, and basic liability coverage will keep your vehicle in good standing with most state policies while significantly reducing your insurance premium rate.
You pay less, and you don’t have to worry about giving up your vehicle’s tags until you secure insurance again.
— Short-term insurance policies
If your insurance policy is due to renew around the time you want to suspend your coverage, consider taking out a short-term or temporary insurance policy rather than renewing your current policy.
Use online comparison tools to find the lowest price possible, but keep in mind that you may want to keep some protection just in case your vehicle is stolen or damaged while you’re away.
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— Let your policy lapse
If you don’t have the money to pay for your insurance, you have the option to let a lapse in insurance coverage. When your payment isn’t received, the insurance company will suspend or cancel your policy due to nonpayment.
You can take out a new policy when you’re ready to continue coverage, but this leaves your vehicle unprotected in the meantime.
Consider this your absolute last resort because it involves a lot of risk. Your current insurance company may decline to give you a new policy at a later date, or they may increase your rate because they consider you a higher risk.
In some states, you will lose the ability to register your vehicle and may have to turn in your license plate.
For instance, in New York State, you are required to forfeit your vehicle’s license plate and may face license suspension if your insurance lapses.
In Pennsylvania, uninsured drivers can lose their license and vehicle tags, and they are required to pay a fine of at least $300. In both states, you can avoid fines and license suspension by turning in your vehicle’s tags before your policy is suspended or canceled.
What if you’re deployed?
If you’re deployed for the military and no one will drive your vehicle while you’re away, you should inform your insurance company of the situation as soon as possible.
While most auto insurance companies don’t currently have special programs that allow members of the military to suspend their insurance without consequences, the reason you are suspending your policy may make a big difference when you return and wish to reinstate your policy.
Consider turning in your vehicle’s tags before you cancel or suspend your insurance policy.
Here are some questions to ask yourself before deciding the best course of action in this situation:
- Is there any chance that someone else may need to use your vehicle while you’re deployed? If it’s possible, then you should consider keeping at least liability insurance
- Can you add your car to another trustworthy person’s insurance policy? Paying them for the slight increase in their policy may save you money over paying for your own policy
- Would you benefit from selling your vehicle before you leave? If you expect your deployment to last a year or longer, you may find it much easier to sell rather than maintain the vehicle
What’s your best option?
In many cases, it’s worth paying for your current car insurance even if you aren’t using your vehicle for an extended period of time.
This prevents you from giving up your tags and severing your state registration, and you can get in your vehicle and start driving again at any time.
You don’t have to pay reinstatement fees to the state and wait for them to give you new tags once you’re ready to resume driving.
If that doesn’t work for you for some reason, it’s always best to willingly turn in your tags and ensure your vehicle isn’t driven until you can reinstate your insurance.
You don’t have to worry that your state will take your vehicle’s registration or suspend your license, and you won’t waste money paying fines.
If you are looking for a more affordable policy, use an online tool to help you search for the best coverage.
Start comparing car insurance rates now by entering your zip code in our FREE tool below!
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Case Studies: Suspending Car Insurance for a Month
Case Study 1: Extended Vacation
John is planning a three-week vacation and won’t be driving his car during that time. He wants to suspend his car insurance to save money. However, his insurance company doesn’t allow policy suspension. John decides to temporarily reduce his coverage to liability only to keep his car in good standing with state policies while reducing his premium rate.
Case Study 2: Military Duty
Sarah is being deployed for military duty overseas for six months. She won’t be using her car during this period and wants to suspend her car insurance. Sarah contacts her insurance company, but they don’t offer a specific policy suspension option for military members. Instead, they suggest Sarah turn in her vehicle’s tags until she reinstates her policy or secures a new one.
Case Study 3: Financial Constraints
Mark is facing financial difficulties and can’t afford to pay his car insurance premium for a month. He wants to avoid an insurance lapse for nonpayment. Mark reaches out to his insurance company to inquire about policy suspension, but they don’t provide this option.
As an alternative, Mark considers letting his policy lapse. However, he understands the risks involved, such as being uninsured and potentially facing penalties, fines, and license or registration suspensions.
Case Study 4: Reducing Coverage
Emily is taking a three-month sabbatical and won’t be driving her car during that time. She wants to reduce her car insurance coverage to save money.
Emily contacts her insurance company, and they allow her to temporarily reduce her coverage while keeping comprehensive coverage to protect her vehicle from damages not related to an auto accident. This way, Emily avoids a coverage gap and retains any insurance discounts she currently has.
Frequently Asked Questions
Can I suspend my car insurance for a month?
Suspending car insurance is different with every car insurance company. Keep in mind that you won’t be protected from theft or natural disasters during the suspension.
What should I do if I want to suspend my car insurance policy?
Contact your car insurance company and inquire about their policies regarding policy suspensions. Each company may have its own rules and options available.
Can I temporarily reduce my car insurance coverage instead of suspending it?
While most auto insurance companies may not allow you to suspend your insurance, they may allow you to temporarily reduce coverage. However, comprehensive coverage is typically required to protect your vehicle from damages not related to an auto accident.
What are some alternatives if my car insurance company doesn’t allow policy suspension?
If suspension is not an option, you can consider dropping to liability coverage only, taking out a short-term insurance policy, or letting your policy lapse. Each option has its own consequences and risks, so choose carefully.
What happens if my car insurance policy lapses?
If you let your car insurance policy lapse due to nonpayment, your vehicle will be uninsured and unprotected. Additionally, you may face penalties, fines, and license or registration suspensions depending on your state’s regulations.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
Joel Ohman
Founder & CFP®
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...
Founder & CFP®
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.