The quick answer is “Yes”. If you have a vehicle that is registered and marked for road traffic, it must be insured or you will have to pay a hefty fine from the state you live in. We have many customers who have said that they do not want to pay high costs for car insurance for a vehicle that does not get used to, so we have come up with some suggestions on how to handle this scenario.
Adjust the insurance cover on the vehicle
We are insurance agents, so we would never tell you to reduce coverage, but you are the head of your insurance. If you do not use it, make some changes to your coverage:
- Remove the crash protection (eg damage to your vehicle while moving), but keep comprehensive protection (eg theft or a tree falling on it)
- Increase your deductibles in the event of a collision and extensive
- Remove roadside assistance, towing or car rental replacement.
- Consider User-Based Insurance ̵1; You can add a device to your vehicle and the device tracks how often it is used. This can save a lot of money on your insurance.
- If it is an older vehicle that is stored in a secure garage, you can purchase a collector car policy. Classic car insurance is usually cheaper than a regular insurance and provides even better coverage.
Consider returning the tags (number plate) to the DMV
If you do not use a vehicle, you can always hand over the registration plate to DMV. The insurance is linked to your registration plate. If your car insurance is terminated, the insurance company must notify the Department of Motor Vehicles to notify that the vehicle is uninsured. If there is a registration plate marked on the vehicle, DMV will send you a fine for being uninsured. But if you have handed over the plate, no fine would be imposed. Just make sure it is not a vehicle that will ever be used. In addition, if it is not insured at all, even if it is stolen and used by a thief, you may be liable in the event of an accident or collision because you are the registered owner. In addition, anything can happen to the vehicle even when not in use. Theft, flood,
Just sell it
If you do not use it, Dave Ramsey ELP says in me “Why did not you sell it?”. Even if it does not work, you can probably pay off many bills by selling it for a scrap. Or maybe you should donate it to a non-profit organization and write off the value of your taxes. If not, it’s probably an eye floating on your property or taking up space in your garage. If it has sentimental value, take a picture of it or keep the steering wheel as a keepsake.
Vehicles must be maintained even when not in use. You still have to drive them sometimes, and they still need an oil change. Think about the cost of insurance and maintenance and compare it to how often you drive. Is it cheaper to rent a truck or use carpooling as needed? In that case, just sell it.
Is it really that expensive to insure it?
Sometimes it’s just a matter of perspective. Over the years, I have heard my share of complaints from customers who say that their insurance is too expensive. When we quote the insurance again, we may discover that the current price is the best available. While it is always a good idea to get multiple quotes from an independent agent, if you have the best available price it may not be too expensive. Maybe you just need to update your budget. Some customers may change insurance to save less than $ 100 for the year, but the same customer may pay over $ 50 per week at a coffee shop and over $ 200 per month for cable and internet. Dave Ramsey would probably suggest that you adjust your budget.