There are various reasons why people put their cars in storage. Some may be when they go on an extended vacation or their job takes them overseas for an extended period. You may find it wise to cancel your auto insurance to save money. After all, you won’t be on the road. But is it a smart move? While you may find it a short-term saving scheme, there are setbacks to canceling the policy. It would be best if you instead considered the option of downgrading your policy. In that case, should you cancel your auto insurance when your car is in storage? The answer is NO. Let’s explore why as prepared by Oliver Insurance.
Your car is still vulnerable to risks.
Even if your vehicle is not on the move, it’s still at risk of damage while in storage. Your car, for example, may be damaged by falling objects. Your vehicle is also at risk of theft, fire, vandalism, or flooding while in storage.
It creates gaps in your coverage.
Canceling your policy when your vehicle is in storage creates gaps in your insurance history. Most insurance companies look at your insurance history, and when they see some gaps, they may rate you as a high-risk driver. When you decide to reinstate your coverage, you may pay more premium.
You may violate your loan agreement.
If your car is on loan and you are still paying it off, your lender may require you to have specific insurance coverage even if you are not driving your vehicle. With this, the option of dropping off the policy is not available.
Auto insurance in Canby, OR
While you can drop your insurance when your car is in storage, think of the cost you would incur if an unfortunate event occurred like theft or damage. It would help if you talked to your agent to see the options available for stored cars. If you live in Canby, OR, and its environs, speak to us at Oliver Insurance for personalized advice.