Car insurance while not driving?

[padoo289 0]

Hi,

I'm planning to go back to Japan for 4 months.

Do I have to keep my car insurance?

Nobody will drive my car while I'm out of country.

I'm still making car payments and have a full coverage insurance on it.

Does anyone know about this?

Thanks!

[RobertAtlantaUSA 1]

If you are financing your car, the finance company usually requires you to keep full insurance on the car whether or not its being driven, with them as "Named Payee." You should look at your financing agreement and/or call them to see what the minimums are that the finance company requires.

Also, depending on what state you live in, you might be required to have at least liability insurance for as long as the car is registered, unless you turn in your plates. I have found that its easier for me to just keep minimum insurance on my car sitting in my driveway than to turn in the plates every time I take an extended trip.

Check with your finance company and also check with your state.

Edited March 14, 2015 by RobertAtlantaUSA

[joeygen 2]

You can just have collision and comprehensive coverage on ur insurance. I am a licensed insurance agent.. we do that a lot, specially if you dont use ur vehicle, just make sure to park it in a safe place or enlclosed garage

[padoo289 0]

Thank you for your comments. I live in California. I'll check with the financing company to see if I can do reliability only while I'm away.

[joeygen 2]

Banks are concern to your collateral not your liability... they want to recover their money if there is something happened to ur car, for example theft or fire... liability wont cover you in case of fire and theft - comprehensive coverahe will.

Liability is your responsibility for other person.... typically doesn't care about ur liability unless it is a lease vehicle...

They would want you to have comprehensive and collision coverage.

[padoo289 0]

Banks are concern to your collateral not your liability... they want to recover their money if there is something happened to ur car, for example theft or fire... liability wont cover you in case of fire and theft - comprehensive coverahe will.

Liability is your responsibility for other person.... typically doesn't care about ur liability unless it is a lease vehicle...

They would want you to have comprehensive and collision coverage.

Collision + comprehensive coverage + liability = full coverage? I was thinking liability is a must have. Sorry if I'm saying things that don't make sense, but this thing is confusing!

[CowBoE 429]

About 30 years ago...(hehe...yes that long ago)...

I had to store my new (financed) sports car into a rented garage for a year in Chicago

while temporarily working/living in a bad side of the city

and drove a junker that matched the locals...

and only paid very nominal storage insurance.

But many things could have changed in 3 decades...

so definitely call both financing company and the insurance.

Let us know what they say...

[joeygen 2]

If you are going out of town/country for more than 30 days.. you may not need liability... typically you just need comprehensive, but since you have a lien on the vehicle..you need to keep collision coverage also...

[SBB 74]

You will definitely want to keep some sort of coverage on your car even if your financing company doesn't require it. A gap in coverage would make you pay significantly more when you tried to restart your insurance.

[VOL 425]

You will definitely want to keep some sort of coverage on your car even if your financing company doesn't require it. A gap in coverage would make you pay significantly more when you tried to restart your insurance.

Why is that?

I have cars that I let the insurance expire on for months or even years at a time. I have never seen a difference in price........

[SBB 74]

Why is that?

I have cars that I let the insurance expire on for months or even years at a time. I have never seen a difference in price........

But did you still have some sort of insurance on at least one car? Whenever I look at insurance quotes, one of the questions is something like "Have you ever been without coverage for even a single day?" Having a lapse in insurance puts you in a different risk pool. It certainly does at my insurer (Progressive) where they have discounts based on continuous insurance coverage, even with other insurers.

[novedsac 355]

But did you still have some sort of insurance on at least one car? Whenever I look at insurance quotes, one of the questions is something like "Have you ever been without coverage for even a single day?" Having a lapse in insurance puts you in a different risk pool. It certainly does at my insurer (Progressive) where they have discounts based on continuous insurance coverage, even with other insurers.

This is very true, at least in the states I have lived.

I spent a year in South America and when I tried to insure a car in Connecticut, one insurer wouldn't even insure me because I hadn't had coverage for a year. I did get coverage through another insurer but I paid a premium for awhile.

Really a stupid policy as there are many reasons why one would be without insurance other than letting it lapse and driving an uninsured vehicle.

[VOL 425]

But did you still have some sort of insurance on at least one car? Whenever I look at insurance quotes, one of the questions is something like "Have you ever been without coverage for even a single day?" Having a lapse in insurance puts you in a different risk pool. It certainly does at my insurer (Progressive) where they have discounts based on continuous insurance coverage, even with other insurers.

Yes Mulitiply vehicles, plus house and boat on same insurance. State Farm. Liability runs about $165 per 6 months.