Amid a pandemic, it’s no time to pay for things you don’t need, and that includes car insurance for an idle vehicle.
You might be thinking about how to ditch your auto policy if you own a car you never drive — and whether it makes more sense to cancel the policy or suspend it temporarily.
Putting your car insurance on hold can be a good way to save money if you have an out-of-use vehicle. But it’s not as easy as halting your Netflix subscription. In addition, your options may be limited depending on why you’re taking a hiatus from driving the vehicle or whether you have a car loan. If you still use the car at all, you’ll want to keep it insured to stay legal and financially protected.
If you’re experiencing financial hardship because you lost work due to the coronavirus, insurers and other financial institutions are likely to be lenient.
Where it concerns your auto insurance, there are five main options to explore:
• Request a coronavirus-related payment delay or plan.
• Suspend your coverage.
• Cancel your policy.
• Reduce your coverage.
• Remove yourself from a policy.
Coronavirus-related payment delays or plans
Many auto and home insurers are willing to work with customers financially affected by the coronavirus. Depending on your auto insurer, payment assistance can take many forms:
• Pausing cancellations due to nonpayment of premiums.
• Special payment plans, including delayed payments, for coronavirus-related financial hardship.
• Custom payment options on a case-by-case basis.
No matter who provides your auto coverage, the best thing to do is alert the company before your bills are late.