Can I cancel insurance on a car I don't drive?

Asked by: Gustave Treutel  |  Last update: June 27, 2025
Score: 4.3/5 (52 votes)

To cancel your insurance, cancel your vehicle registration first to avoid creating a gap in car insurance coverage. You may need to fill out an affidavit of non-use with your state. You may also be required to turn in your plates and store the vehicle in a locked facility.

Should I cancel car insurance if not driving?

Absolutely do not cancel your insurance. Check to see if you can lower it to the bare minimum that your state requires. Also, be aware that even not being driven accidents can happen.

Can I take my car off insurance if I don't drive it?

Yes, you can cancel your insurance if you choose not to drive for six months, although in most states, auto insurance is required for all registered cars. Your insurance company will report the cancellation to the state, and the state will treat you as if you were driving without insurance.

Is there a penalty for cancelling car insurance?

At the same time, you might also be subject to a cancellation fee. Many companies don't charge such penalties, but with those that do, you can expect to pay a flat fee of under $100 or around 10% to 15% of the remaining policy premium.

Will my insurance pay if my car breaks down?

Whether it's routine maintenance, a mechanical failure or a blown engine, car insurance will most likely not cover the costs of repairing or replacing your vehicle. Hopefully, your car keeps running smoothly, but plan to pay out of pocket for routine maintenance or for a mechanic if your car breaks down.

Does My Car Need Insurance If I’m Not Driving It?

20 related questions found

Can I cancel my insurance if my car broke down?

If you are not driving your vehicle — because it's broken down, in storage or for another reason — you do not need insurance. However, you should inform your state's Department of Motor Vehicles (DMV) before canceling your policy.

Will my car insurance go up if my car is broken into?

Filing a vandalism car insurance claim could result in a rate increase, depending on your insurer and state.

Do I get charged if I cancel my car insurance?

If you cancel your insurance policy after the cooling-off period, you might have to pay a cancellation fee. There could also be other charges, like an extra admin fee.

Can I pause my car insurance?

Depending on your state's rules and insurer, you may be able to pause your car insurance if you won't be driving for an extended period. If putting a pause on your car insurance isn't possible, you can reduce your coverages or cancel your policy for the time you don't need it.

Does canceling car insurance hurt credit?

Does Canceling Car Insurance Affect Your Credit? As long as you don't have any unpaid premiums that could be sent to collections, canceling your auto insurance policy won't have any impact on your credit score.

Should I take insurance off a car that doesn't run?

Do you need insurance for a car in storage? Legally, you don't need insurance coverage for a car that's not being driven and is in storage. However, if the vehicle gets stolen, vandalized, or damaged in an accident or weather-related event, you'll be responsible for any resulting expenses if you don't carry insurance.

Can I take insurance off my car if I'm not driving it in South Carolina?

If You are Looking to Save Money

So if you are looking for ways to save on your auto insurance, dropping coverage on a vehicle you no longer drive but is still tagged is not the way to go. You can get slapped with a hefty fine if the SC DMV catches you.

Can I drop car insurance anytime?

Yes, you can kick your car insurance to the curb whenever your heart pleases. However, if you're switching companies, the best time to cancel is after you've found new insurance coverage.

Is it better to not go through car insurance?

Always file a claim if there are injuries.

“While there are occasional situations where a claim isn't needed, sometimes going through your insurance is unavoidable, such as when someone is injured or when fault is unclear. If the damage is only to your vehicle, however, it's up to you.”

Can I remove my son from my car insurance when he goes to college Progressive?

You can remove a listed driver from your car insurance policy if they no longer live with you and no longer drive your vehicle. If you have a child away at college or who moves out temporarily, it's a good idea to keep them on your policy. Doing so ensures that they can drive your vehicle during breaks.

How long can you go without car insurance?

It is a crime to drive almost anywhere without car insurance coverage, even for a minute or just down the street. So, how long can you be without car insurance? If you're driving, you can't. Anytime you get behind the wheel as a licensed driver, you need insurance coverage or you'll risk incurring major consequences.

Do I get penalized for Cancelling car insurance?

Car insurance cancellation fees

Depending on the auto insurance company, canceling your policy before the end of its term may result in a cancellation fee. State laws can determine if a fee is allowable. If so, it is up to the insurer to set that fee, which is often taken out of the prorated refund.

Can you drop insurance anytime?

You can cancel your plan anytime if you purchased self-only or family coverage on the individual health insurance market.

Can I pause my car insurance if my car is totaled?

As long as the policy was active at the time of the accident (which it sounds like it was), you should be fine. Second, if your car is totaled, you can cancel your insurance if you are not getting another car in the near future.

How long can I freeze my car insurance?

You can't legally freeze your car insurance policy if you're still driving your car, but you may be able to cancel your coverage indefinitely if you're not driving your vehicle for a long period of time.

How much does it cost to cancel an insurance policy?

Cancellation fees: Some car insurance companies charge cancellation fees, usually $50. In other cases, they could charge you a small percentage of your final premium that you were going to pay in the future. The majority of the time, you will not have to pay a cancellation fee.

What is the cancellation fee?

Cancellation fees are fees charged by service providers to clients who cancel their services or bookings. The purpose of these fees is to compensate the service provider for any losses incurred due to the cancellation.

Do you get insurance money if your car breaks down?

Car insurance doesn't typically cover mechanical issues unless they're related to a covered peril.

Will insurance pay if someone puts sugar in your gas tank?

What if someone puts sugar in your gas tank and ruins the engine? Your auto insurance company should pay out the claim — buy only if you have comprehensive coverage.

At what point will car insurance drop you?

Insurers may not drop a customer after their first one or two incidents. The first step is often to increase your car insurance rate. From there, if a customer has another accident or files more claims, the insurer may send a notice that they won't be renewing the policy at the end of its term.