Do you have a summer driver – a car you only use during the summer months but park for winter, or vice versa? If so, you may be paying to much for your auto insurance if you keep it covered year-round. The following guide can help you determine the best insurance strategy for your specific needs.
When it comes to insuring your vehicle during the off-season when it isn't being driven, you have three main options:
Continue to carry full comprehensive, collision, and liability coverage.
Drop the collision and liability, but maintain the comprehensive coverage.
Cancel all coverage until you resume driving.
Keep in mind, that liability and collision is only necessary in the event of an accident, while comprehensive covers the car in the event is is damaged – even if it is parked at the time of damage.
Your parking situation can have an impact on your choice. If you garage your car in a private garage for the winter, it is less likely to be hit by another vehicle or suffer damage from weather. In this case, you may feel more comfortable dropping your coverage. Keep in mind that this is only a good idea if your home owner's policy will cover the car in the event something does occur, such as a house fire.
Value of the vehicle
Another thing to consider is the value of the vehicle. If this is your winter beater, and you switch to a nicer car once the threat of icy, salted roads disappears, it may not be worth it to maintain coverage once it is parked. This is especially true if you have the cash on hand to replace it yourself, if necessary.
On the other hand, if this is your fancy convertible or beloved classic car that you are parking for winter, coverage is more important since it can be difficult, if not impossible for a classic car, to replace it. Weigh the cost of continuing your policy against the replacement cost to aid in your decision.
Legal and cost concerns
The main legal concern is that you cannot drive the car, even if there is an emergency, if it is insured. This can make it difficult if you need to move the car for some reason. Another concern is that it can affect your insurance rates, since some insurance discounts are provided to those that maintain unbroken insurance.
The best option may be to drop collision and liability, while maintaining your comprehensive coverage. This way, a single phone call to your agent can get your full coverage instantly reinstating if you need to drive the car unexpectedly. Your car will also be protected if something were to occur during storage. Contact a business, such as Mid-Alliance Insurance Associates LLC, for more information.Share
6 June 2016
About ten years ago, my auto insurance was cancelled. This took place after one too many accidents. I was now a high risk, and my provider was not willing to keep me on any longer. Since there was no way that I was going to get behind the wheel without coverage, I started checking out plans with high-risk insurers. Some were not all that great, but others offered benefits that were very close to my old plan. I soon found a provider who would accept my application, and I began to be a little more careful with my driving. If you are having trouble buying auto insurance, let me help. I'll tell you what to look for in a high-risk provider, and how to find the best one in your area. In no time at all, you'll be covered and ready to get back on the road again.