Perhaps you are entering a period where you don't plan on driving for an extended period. You may be curious about how this change impacts your auto insurance policy. Here's a closer look at what your next steps may entail.
If you're planning to take an extended hiatus from driving, you may believe that you can put a temporary hold on your coverage. Most insurance companies do not allow drivers to suspend their insurance. However, you may be able to reduce your coverage since you aren't driving as much. Obtaining auto insurance is a requirement in most states. You do have the option to cancel your policy. However, this option is only recommended if you have secured coverage elsewhere.
It's recommended that you speak with your insurance agent and notify them that you plan to reduce your driving for a lengthy period. You may suspend your mandatory liability coverage. If you have collision and comprehensive coverage on your auto insurance Redlands policy, your only option is to cut those policies.
If you reduce your auto insurance Redlands policy to just comprehensive, you may qualify for seasonal coverage. A seasonal policy helps you save money by lowering your premiums when you aren't driving as often. You'll also be covered if your vehicle suffers damage when you aren't driving. One common example is having your windshield cracked due to flying debris.
You can also avoid having a coverage gap, which will raise your auto insurance significantly if you decide to start driving full-time again. You'll also continue to qualify for potential discounts. Be aware that reducing coverage may not be an option if you're leasing. The lender may require you to maintain full coverage at all times.
Storage coverage is another option to consider regarding your auto insurance Redlands policy. If you don't plan to do any driving for an extended period, you may opt to place your car in storage. It would help if you considered adding storage coverage once two months have passed without using your vehicle. However, it's important to contact your insurance agent.
Some insurance companies do not offer storage coverage, or their idea of coverage may not be what you're looking for. Some companies offer storage coverage which no longer protects you if your vehicle suffers damages in a collision. Storage coverage could also reduce your liability limits, leaving you on the hook for a significant portion of repair costs if you are involved in a serious accident. You may also be responsible for covering some of the injured party's medical bills.
Another option to consider is usage-based coverage. This type of policy adjusts your rates based on the number of miles accumulated on your vehicle. You also have the option to remove yourself from the auto insurance policy if you don't plan on driving anymore, but someone else will be using your car. However, you'll likely only enjoy limited savings if you choose this option.
There are several options to consider in auto insurance if you plan to stop driving on a regular basis. If you have questions about how to proceed, contact the experts here at Little & Sons Insurance, and we will guide you through the process.
After 23 Years of serving our clients at our location in Beaumont, CA it is with a heavy heart that we are consolidating our operations to our Banning Office. We will be available all the same hours and will work to make this transition as smooth as possible. Thank you for your continued business and we look forward continuing to serve your insurance needs. Our contact information will stay the same so feel free to contact us.