My friend suggestted that it might not be wise, because when I get another car in 5 months they will charge me more for insurance if I was not insured for a long period of time. His logic was that it's a red flag to insurance co. They think you were driving without insurance or totaled your car. Even though my car just died on it's own.
2007-10-09 09:29:14 · 28 answers · asked by honeyroastedeggroll 1 in Cars & Transportation ➔ Insurance & Registration
Another wrinkle to the situation is that I do not get any service from my current car insurance company. They have lied to me so much that I don't trust what they say. So I don't want to ask them about the what I can do with them because I plan to drop them regardless. I think I'll call Gieco and see what they say about lapse insurance.
2007-10-09 11:39:24 · update #1
No, cancel it. No reason to make car insurance payments on a car you're not driving.
2007-10-09 09:33:33 · answer #1 · answered by Anonymous · 0⤊ 0⤋
No it's perfectly fine and logical to cancel your insurance on a car that no longer runs. If you're really that worried about it then call your insurance company and explain everything to them.
2007-10-09 09:32:40 · answer #2 · answered by Amy Vicious 1 · 0⤊ 0⤋
duh - yes! They will only charge you if you were without of insurance but had a car. You can sell it or junk it and show them the receipt. If you communicate with the insurance company then they will work with you. If you cancel and instead of them that is different. You only need to keep it if the car is still in your possession. I wouldn't be paying insurance on a car I'm not driving forget that! That money can go towards your downpayment. I don't agree with your friend on this one.
2007-10-09 09:33:34 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Your friend is correct on this matter. My husband and I actually cancelled our insurance on a car that quit running. BIG MISTAKE!!
Some insurance companies would not even consider coverage for us, and we finally had to go to a high risk company.
Please, keep your coverage. You might be able to add a higher deductible or just carry the essential coverages prescribed in your state, but keep some coverage. You won't regret it.
2007-10-09 09:33:46 · answer #4 · answered by nowyouknow 7 · 0⤊ 0⤋
If you get a NON op slip from the dmv on the car first and present that to the insurance company, it is likely the insurance company will give you a low flat rate for the vehicle since it is not moving on the streets. Then you can change your policy when you get the new car. Its still good to have it covered since the car will still have value even if it is not running.
2007-10-09 09:32:17 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I say cancel it. Why pay for something you're not using? Tell them you no longer have a car and then get your money back if you paid ahead or just don't pay any more. I don't think you'll get penalized when you get a new policy. If you do, go to a different company. I know Geico doesn't care.
2007-10-09 09:32:32 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Your friend is right. Just keep it insured with the bare minimum of coverage. If you cancel it and then go to get insurance, they consider you high risk because you went without insurance for a period of time.
2007-10-09 09:33:25 · answer #7 · answered by Anonymous · 0⤊ 0⤋
I would call my insurance comp..and ask them.. why pay for a car that doesnt work..and also call the car insurance and tell them you no longer need insurance for that car cuz its dead..They wont hold that against you..then if you dont get a car soon you need to turn in ur plates but talk to them they will help you.
2007-10-09 09:33:33 · answer #8 · answered by Anonymous · 0⤊ 0⤋
A couple of things you need to think about.
1. If you owe money to a finance company on your auto, you are required to carry at least liability insurance on your car.
This protects the equity in the auto for your finance company.
2. If you allow your insurance to lapse, when you apply for insurance again, they will run a credit report etc. This indicates your reliability and ability to share your financial burdens.
Think about these things and then, you decide.
2007-10-09 09:34:16 · answer #9 · answered by The Loan Arranger - ABQ, NM 2 · 0⤊ 0⤋
Talk to your agent. your friend may be mistaken, and it's better to be sure.
When my car died (engine siezed), I called my insurance agent the next day (it was Sunday when it happened) and asked what to do.
Granted, I had a new car within 2 weeks, but we just had the insurance suspended, meaning I couldn't drive the car (no biggie, as the car was in a big cube within 2 days), but they applied the payment on insurance I had JUST made to the new car's insurance.
2007-10-09 09:34:25 · answer #10 · answered by Darkwolf 5 · 0⤊ 0⤋