Should I cancel my car insurance if I don't have a car?
Asked by: Lora Monahan | Last update: June 19, 2025Score: 4.4/5 (2 votes)
Can I cancel my car insurance if I don't have a car?
If you will be driving in the future, but not in your own car, a non-owner policy may be the right choice for you. If, however, you will not be driving any more, you can cancel your policy outright, since you will not need coverage in the future.
Should I have insurance if I don't have a car?
If you don't own a car but still drive, a liability-only policy might make sense for you. This type of policy is much less expensive than standard personal auto insurance and will protect your assets from legal, medical and remediation expenses you owe to others.
Is it better to cancel car insurance or let it lapse?
It would be better to suspend/lower your coverage for those two months than to cancel your policy. A lapse will increase your premium and also disqualify you from certain companies in some cases. If you do suspend or reduce coverage, just remember to add it back once you are driving again.
Can you remove a car from insurance if you don't drive it?
If you have the vehicle registered it needs insurance. If you want to turn in the registration/plates, then you can cancel it, but you won't be able to drive it.
Insurance Companies to AVOID!
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.
Is it bad to cancel car insurance?
Canceling your policy too soon means you may face legal repercussions, like hefty fines or having your license suspended. When you cancel, you'll have a lapse in coverage. This isn't a problem if you won't be driving.
Do I get penalized for cancelling car insurance?
Remember that most states require you to have at least the minimum coverage for your vehicle even if you're not driving it. When you cancel your car insurance too soon, you can be subject to fines and even have your license suspended.
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.
Does cancelling insurance look bad?
Cancelling if you pay monthly
If you don't notify your insurance provider and simply cancel your direct debit, you'll be in breach of your contact, and it'll appear on your credit report as a missed payment, which could have a negative impact on your credit score.
Can I take insurance off my car if I'm not driving it in Texas?
You'll need to keep the legally required auto insurance coverages. But you can remove optional add-ons like roadside assistance and custom parts and equipment coverage to save money while you're not driving.
Is it better to have car insurance or not?
In most states, you need liability coverage because it's required by state law. Even in the states that allow you to forgo liability coverage, it can still help protect your personal finances if you cause an accident that results in injuries to someone else or damage to their car or property.
Can someone drive my car if they are not on my insurance Progressive?
While there are exceptions, car insurance generally follows the car and not the driver. Allowing another licensed driver to borrow your vehicle is known as "permissive use," which means you give someone, who isn't listed on your car insurance policy, permission to operate your vehicle.
Does State Farm charge a cancellation fee?
State Farm's cancellation policy
State Farm doesn't charge a cancellation fee; you can cancel your coverage anytime. You can also receive a prorated refund if you have prepaid your insurance premiums.
Do you need insurance if you have a license but no car?
You should still have insurance coverage if you're a licensed driver who regularly borrows or rents vehicles. Not all companies offer non-owner insurance policies, so you'll have to shop around.
Can I switch insurance companies in the middle of a policy?
If at any time and for any reason you want to make a switch to another insurer mid-policy, you typically have the right to cancel your policy. Even if you just started your coverage or have a pending claim, you should be able to cancel your current policy with no penalties.
How does car insurance work if you don't have a car?
If you drive regularly but don't own a car, a non-owner insurance policy provides liability coverage for bodily injury and property damage, meaning that it will cover you if you're liable for damages or injuries in an accident.
Does insurance cancel immediately?
Your insurance company must give you at least 30 days notice before they can cancel your coverage for the reasons stated above. This gives you time to appeal the decision or find new coverage.
Can you get your car back if you don't have insurance?
No, if your car gets impounded, you must present the necessary documentation, including your driver's license, the vehicle's vehicle identification number, and proof of auto insurance, to get it released. If you don't have proof of insurance, you'll need to buy a policy before you can get your car back.
Is it a good idea to cancel car insurance?
The biggest downside to canceling is that it creates a lapse in your insurance history. Continuously insured customers generally get better rates than drivers who have coverage gaps, who are typically labeled “high-risk drivers.”
Will I get refund if I cancel car insurance?
Generally, insurers will refund you the money for the unused portion of your policy, assuming you paid in advance. However, depending on your state, and when you cancel, your insurer may charge a cancellation fee.
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.
Does cancelling 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.
Is it better to cancel insurance or let it lapse?
A lapse in coverage may cause insurance companies to see you as a high-risk driver, even if you have a good driving record. It can also potentially impact your future car insurance premiums. It's best to keep continuous coverage to get the best insurance rate and make sure that you're protected in a car accident.
Should I cancel my car insurance if I can't afford it?
If you can't afford car insurance, don't go without. Instead, try to find a more affordable policy by increasing your deductible, downgrading your coverage, looking for discounts, driving less and comparing prices from multiple insurance companies.