Can I suspend car insurance temporarily instead of canceling it?

Why you can trust Insure.com

Quality Verified

At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry.

Not driving your car for a while? There’s no need to pay for full coverage then. 

Suspending car insurance temporarily is possible with most insurers — but it rarely means eliminating coverage entirely. In most cases, suspending means switching to storage coverage, which keeps comprehensive protection in place while dropping liability and collision. That keeps your car protected from theft, fire, and weather while saving money on the parts of your policy that only matter when you’re driving.

Whether you can suspend coverage, and how, depends on your state’s laws, your lender’s requirements if the car is financed, and your insurer’s specific options. Here’s what you need to know before making any changes.

What it means to suspend car insurance

Suspending car insurance means temporarily reducing your coverage — not eliminating it entirely. The most common form is storage coverage, which keeps comprehensive insurance in place while removing liability and collision. The car is protected from theft, fire, and storm damage but cannot legally be driven.

A full suspension — removing all coverage — is rarely possible on a registered vehicle. Most states require at minimum liability insurance on any vehicle with active registration. To get around that, you’d need to either cancel the registration, file an affidavit of non-use with your state’s DMV, or move the vehicle to non-operational status before dropping all coverage.

Can you legally pause car insurance in your state?

In most states, you cannot simply pause all car insurance on a registered vehicle — liability coverage is legally required as long as the vehicle is registered. There are ways to get around this requirement, but each involves either changing the vehicle’s registration status or accepting reduced coverage rather than no coverage.

Here are the main paths depending on your situation:

• File an affidavit of non-use with your DMV. Some states allow you to submit paperwork that moves your vehicle to non-operational status. Once in non-op status, you can drop liability coverage — but you still can’t legally drive the car, and you should keep comprehensive coverage to protect against theft and damage.
• Cancel the registration. If you surrender your plates, you’re no longer legally required to carry liability insurance. This works if the vehicle is going into long-term storage, but reinstating registration when you’re ready to drive again adds steps and costs.
• Switch to storage or comprehensive-only coverage. In states that don’t require you to notify the DMV, your insurer may allow you to drop liability and collision and keep only comprehensive. You maintain continuous coverage while paying significantly less.

Situations where temporarily suspending car insurance may make sense

Suspending makes sense any time a vehicle won’t be driven for an extended period — typically 30 days or more. Here are the most common situations where switching to storage coverage is worth considering.

• Long-term travel of a month or more
• Military deployment
• Storage of a seasonal vehicle
• Damage or mechanical issues requiring an extended repair time
• Temporary relocations such as for college or studying abroad
• Recovering from a health condition
• Waiting for a suspended license to be reinstated

Our agents make it hassle-free to get the right quote.

Call (844) 814-8854

Ethan Available Now

Jack Available Now

Robbie Available Now

Ellie Available Now

Storage insurance vs canceling vs reducing coverage

Not all coverage adjustments work the same way. The right choice depends on whether your car is financed and how long it will be off the road.

How suspending coverage affects your insurance rates later

Suspending through storage coverage maintains your continuous coverage history — which is one of the most valuable things you can protect. Canceling entirely creates a lapse, and even a short lapse can raise your rates significantly when you reinstate.

Here’s how coverage gaps affect future premiums:

• A 30-day lapse can raise your premiums by around 25% when you go to buy insurance again.
• A 45-day lapse can push that increase to 40% or more.
• Longer lapses can result in some insurers declining to cover you altogether, forcing you into higher-cost non-standard markets.

By contrast, switching to storage coverage keeps your policy active. Your continuous coverage discount is preserved, your claims history remains intact, and you don’t have to restart the clock on any loyalty discounts you’ve accumulated.

Can you suspend coverage if your car is leased or financed?

Lenders and leasing companies require continuous full coverage — you can’t switch to storage-only coverage on a financed vehicle. Your options are more limited, but there are still ways to reduce your premium on a car you’re not driving.

• Raise your deductibles. Increasing your collision and comprehensive deductibles reduces your premium without dropping below the lender’s coverage requirements. Going from $500 to $1,000 typically saves around 11%.
• Drop to state minimum liability. If your lender only requires collision and comprehensive at specific levels, you may have more flexibility on the liability portion. Check the loan agreement.
• Eliminate optional add-ons. Roadside assistance, rental reimbursement, and gap insurance (if purchased separately) can often be removed temporarily without violating lender requirements.

If your coverage lapses on a financed vehicle, your lender will find out — and the consequences are expensive

Don’t think you can cancel your insurance without your lender finding out. Lenders are typically listed as additional insureds on your policy and receive notification if coverage lapses. When that happens, they can purchase force-placed insurance — also called lender-placed insurance — and add the cost directly to your loan balance. Force-placed insurance is typically two to three times more expensive than regular auto insurance, and it provides no protection for you — only for the lender’s interest in the vehicle. 

How to temporarily lower your insurance instead of canceling

It’s usually not hard to switch to storage coverage or lower insurance levels to save money on a vehicle you aren’t driving.

Follow these steps:

1. Contact your insurer. Don’t simply stop payments or cancel your policy. Call or email your insurer to find out what car insurance suspension options are in your state.
2. Submit an affidavit of non-use. If required in your state, submit an affidavit of non-use to change your vehicle’s registration to non-operational.
3. Switch to storage coverage. Suspend your collision and liability insurance by moving to storage coverage, which is comprehensive-only.
4. Increase deductibles, if needed. If storage coverage isn’t an option because your car is financed or leased, increase your deductibles instead of suspending auto insurance.
5. Eliminate added coverage. Check your policy for add-ons such as roadside assistance or uninsured motorist coverage and cancel those while the vehicle is stored.
6. Review new policy documents. Once you’ve made changes, you should get new policy documents. Double-check that everything is correct before you file those away.

Risks of canceling instead of suspending your car insurance

Cancelling your insurance policy might save you money on premiums in the short-run, but in the long run, it could cost you all this and more:

• Higher future premiums. A lapse signals to insurers that you’re a higher risk — either financially unable to maintain coverage or less careful about compliance. Rates can rise 25% to 40% or more depending on the length of the gap.
• Lost continuous coverage discounts. Many insurers reward long-term continuous coverage with discounts that accumulate over years. Canceling resets that clock to zero.
• State fines and penalties. If you cancel coverage on a registered vehicle without also canceling the registration or filing non-op status, you may face fines and penalties for having an uninsured registered vehicle.
• No protection for the stored vehicle. A car in a garage or driveway isn’t safe from theft, fire, flooding, or storm damage. Without comprehensive coverage, any of these events would be a total out-of-pocket loss.

Suspending, rather than cancelling, car insurance coverage can help you avoid many of these financial pitfalls.

How to suspend or adjust your policy the right way

Since state laws and insurer policies vary, use these steps to ensure you don’t run afoul of the rules.

1. Review state regulations. Check your state’s Department of Motor Vehicles or Secretary of State website to learn what, if any, insurance is required for registered vehicles.
2. Notify your insurer. Let your insurance company know that you won’t be driving your car for a while. They can review their options for storage insurance or other coverage changes.
3. Provide requested documents. If either your DMV or insurer requires documentation pertaining to your non-use of the vehicle, be sure to submit it.
4. Request a change in coverage. Talk to your agent or contact your insurer’s customer service line to ask for storage, parked car or comprehensive-only coverage.
5. Make a note to reinstate coverage. It’s illegal to drive a vehicle without the state-mandated minimum coverage so set a reminder to reinstate that insurance before taking your car out of storage.

Common mistakes to avoid when trying to pause car insurance

The process of pausing car insurance can be smooth if you avoid these costly mistakes:

• Assuming a parked car doesn’t need any insurance. Comprehensive coverage exists precisely for stored vehicles — it protects against the risks that don’t go away just because the car isn’t being driven.
• Skipping the state law check before making changes. Some states have specific requirements about notifying the DMV when a vehicle goes off the road. Missing that step can result in fines even if your insurer has the correct information.
• Stopping premium payments without notifying anyone. Missing a payment cancels your policy — it doesn’t suspend it. If you want to reduce coverage, you have to actively request the change. Don’t assume stopping payments achieves the same result.
• Failing to reinstate before driving. Driving on storage or non-op coverage is illegal and leaves you without liability protection. Set a specific date to reinstate full coverage and don’t drive until that’s confirmed.
• Not getting changes confirmed in writing. Verbal confirmations from insurers can be disputed. Always ask for email confirmation or updated policy documents when you make any coverage change.

Maryalene LaPonsie

Staff Writer

 

 . .

Maryalene LaPonsie is a staff writer for Insure.com. She has 25 years of professional writing experience. She specializes in personal finance -- insurance, investing and retirement.