A vehicle used for commercial or personal functions should have insurance as the law requires. Once in a while, you may find it necessary to pause/ suspend your insurance owing to the cost, change of terms, and change of ownership. This piece explores how you may benefit from pausing your car insurance or alternatives offered by your provider.
Pausing Car Insurance
An insurance provider may or may not allow one to pause car insurance. After pausing car insurance, owners and drivers are unsafe from property damage and medical expenses while risking fines and consequences. If one pauses or cancels car insurance, it is best for the insurance holder to renew coverage before getting the wheels back on the road.
How to Pause Car Insurance
Pausing car insurance involves the department of motor vehicles, insurance providers, and parties involved in the car’s acquisition. Before moving towards the pause or suspension, one should consider alternative options and specifics involved. If the suspension is successful, one has to notify the DMV to avoid legal woes.
When to Pause Car Insurance
You may consider pausing your car insurance coverage due to avoidable or unavoidable situations. First off, pausing the insurance comes in handy in case one chooses not to drive the car for thirty days or more. Unfortunately, if paying for the vehicle through a loan, pausing or suspending the car insurance is out of the question.
One can also consider pausing car insurance when;
- Unable to drive due to injury or illness
- Deployed overseas
- Car requires repair
- License is suspended
- Traveling abroad
- The car is in long term storage
To avoid hefty fines and disappointments, one should file an affidavit of non-use with the department of motor vehicles letting the state know that the car won’t operate for long. It is best to consider the terms and conditions of the insurance provider to explore the possibility of pausing insurance.
What Happens After One Pauses the Car Insurance
Suspending an insurance coverage pauses the policy but does not cancel, hence saving you from an avoidable coverage lapse. After a successful suspension, you or other drivers cannot drive the car legally, hence the need for an affidavit of non-use with the DMV. Going forth, you shall have to seek alternative means of transport.
Advantages of Pausing Car Insurance
Suspending car insurance has the following advantages;
– It helps one avoid additional expenses when not driving in the foreseeable future
– If you maintain the comprehensive cover, the car is safe from more damage
– It allows one to avoid lapse that may translate into higher rates in future
Disadvantages of Pausing Your Car Insurance
– Inability to operate the vehicle without the risk of a fine or hefty expense in case an accident
– Most insurance companies do not allow one to pause a car insurance
– A car owner paying for the car through a loan or lease can’t pause the car insurance
Alternatives to Pausing Car Insurance
If pausing your car insurance is out of the question, you should explore the alternatives below.
§ Reduce the coverage. If you need to pause car insurance to avoid the hefty premiums, reducing your coverage may be a viable alternative. For starters, you may reduce auto insurance coverage to the point required by the state. If the vehicle is in storage, consider maintaining comprehensive insurance for protection in case of theft, damage, and nondriving problems.
§ Remove reckless drivers from the policy. In some cases, dropping the insurance company can be your best option. Reckless drivers may increase the chances of incurring expenses following accidents. If the need arises, you may exclude specific drivers, making it necessary to produce additional certification like other insurance to drive the car.
§ Cancel the insurance policy. If your insurance provider offers expensive premiums and unfriendly offers, you may consider getting a better deal. If you are unable to afford to pay for both covers, one should drop the inconvenient one. Canceling is also an ideal move when selling a vehicle or choosing not to drive the vehicle again.
§ Take advantage of available discounts. Time and time again, insurance providers are likely to offer friendly discounts and incentives for the first time and readily available. Leading insurance companies in Singapore like https://www.directasia.com/car-insurance/ are constantly looking for more creative and pocket-friendly plans for maximum retention.
Every car on the road should have a viable insurance cover to avoid legal battles and expenses involved with an accident. If pausing the insurance cover proves overwhelming, consider getting an alternative intervention highlighted above.