Can you pause auto insurance while traveling
Can you pause car insurance while traveling? Most car insurance companies do not allow you to pause your car insurance. Instead, you can simply cancel your auto insurance policy while you’re away.
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Eric Stauffer
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Eric Stauffer is an insurance agent and banker-turned-consumer advocate. His priority is educating individuals and families about the different types of insurance coverage. He is passionate about helping consumers find the best coverage for their budgets and personal needs. Eric is the CEO of C Street Media, a full-service marketing firm and the co-founder of ProperCents.com, a financial educat...
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UPDATED: Aug 15, 2023
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UPDATED: Aug 15, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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If you’re traveling for a month or longer, then you may be wondering: can you pause car insurance while traveling to save money? After all, you won’t be driving your vehicle while you’re away – so why would you keep paying for car insurance?
Today, we’re explaining everything you need to know about pausing car insurance while traveling.
Can you pause car insurance while traveling?
Most car insurance companies do not allow you to pause your car insurance. You cannot simply pause it the day you leave and un-pause it the day you return.
If you don’t want to pay for your car insurance while you’re away on a long vacation, then you do have another option: you can simply cancel auto insurance policy by all means.
However, canceling your car insurance can be a hassle. It can mean a mess of paperwork. It can mean paying higher prices when you buy car insurance again (due to your lapse in coverage).
Canceling your car insurance also leaves your car unprotected while you’re away. If you have full coverage or comprehensive coverage car insurance, then your car insurance policy protects against theft, vandalism, storm damage, and other issues.
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Downsides to Temporarily Canceling your Car Insurance Policy
You cannot pause your car insurance while traveling. However, you can cancel your policy and renew your policy when you return from vacation. This may be in your best interest if you’re taking a long trip abroad – say, a 6-month or 12-month: trip. However, there are some downsides to temporarily canceling your car insurance policy, including:
Your vehicle will be left without coverage while you’re away. It will not be protected against storm damage, vandalism, theft, and other incidents.
If your car is financed or leased, then you are not typically allowed to remove insurance coverage from the vehicle. Insurance coverage is required as part of the financing or leasing agreement.
Most states require you to have at least basic liability insurance on your vehicle if that vehicle is registered. If you cancel your insurance, then your vehicle registration may become invalid.
If you take your car insurance off your vehicle and your registration becomes invalid, then you will need to return your registration and plates to your state’s DMV. Failure to do so could lead to fines or suspension of your license.
If you cancel your car insurance and renew it six months from now, then you might be forced to pay higher car insurance prices when you renew your policy. Car insurance companies do not like to see lapses in coverage, and you may face higher rates than you did before you canceled your policy.
Some States Allow You to Cancel your Car Insurance Without Losing Registration
One of the downsides of canceling your car insurance is that you will lose registration with your local state DMV.
In some states, however, you can temporarily cancel your car insurance policy and suspend your registration without penalty. Typically, this is only done over a long period of planned non-operation of that vehicle, like a six-month period during which you plan to repair your vehicle.
Most Car Insurance Companies Will Raise Rates After a Lapse in Coverage
Car insurance companies don’t want to encourage customers to cancel or “pause” car insurance coverage. That’s why they often punish customers who cancel their coverage.
If you temporarily cancel your coverage and try to renew your car insurance when you return from vacation, then you will likely face higher insurance premiums.
If you’re paying $100 per month for car insurance before you leave on vacation, for example, and you cancel your car insurance for 6 to 12 months, then your car insurance company might increase premiums to $125 per month when you return.
There are even stories of some car insurance companies treating you like a new driver after a long lapse in coverage. If you let your car insurance coverage lapse for 1 or 2 years, for example, then you might pay significantly higher premiums when you renew your policy – at least for the first few months until the car insurance company establishes some insurance history.
Read more: What happens if I let my auto insurance policy lapse?
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Contact your Car Insurance Company and Ask for a Low Mileage Discount
There’s one final thing to note about car insurance and long vacations: some car insurance companies may drop rates slightly if you are not driving your car for a period of several months.
Contact your car insurance company and explain that nobody will be driving your car for several months. This could significantly reduce your annual mileage, helping you get a discount on car insurance.
Conclusion: Can you pause car insurance while traveling?
Whether you’re going on vacation for four days or four months, you cannot typically “pause” your car insurance while you’re away.
You are always free to cancel your car insurance. However, this is generally not recommended. It leaves your vehicle without coverage while you’re away. And, when you return from vacation, you may face higher car insurance prices due to your lapse in coverage.
Ultimately, most people will want to maintain car insurance throughout the length of their vacation.
Frequently Asked Questions
Can I pause my car insurance while traveling?
Most car insurance companies do not allow you to pause your car insurance. Instead, you can consider canceling your auto insurance policy while you’re away.
What are the downsides of temporarily canceling my car insurance policy?
Temporary cancelation of your car insurance policy can leave your vehicle without coverage, making it vulnerable to theft, vandalism, and other incidents. If your vehicle is financed or leased, removing insurance coverage may not be allowed. Additionally, canceling your insurance may invalidate your vehicle registration, leading to potential fines or license suspension. Moreover, when you renew your policy after cancelation, you may face higher premiums due to the lapse in coverage.
Are there any states that allow the temporary cancellation of car insurance without losing registration?
Some states may allow you to temporarily cancel your car insurance policy and suspend your registration without penalty, but this is typically only permitted for long periods of planned non-operation or vehicle repair. It’s important to check the specific regulations in your state.
Will my car insurance rates increase after a lapse in coverage?
Most car insurance companies tend to increase rates for customers who have experienced a lapse in coverage. If you temporarily cancel your car insurance and later renew it, you may face higher premiums compared to what you were paying before cancelation. In some cases, car insurance companies may even treat you as a new driver and charge significantly higher premiums.
Is it possible to get a discount on car insurance for low mileage during extended vacations?
Some car insurance companies may offer a slight reduction in rates if you inform them that your car won’t be driven for several months due to an extended vacation. Contact your car insurance company to discuss this possibility and see if they can provide a low mileage discount.
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Eric Stauffer
Licensed Insurance Agent
Eric Stauffer is an insurance agent and banker-turned-consumer advocate. His priority is educating individuals and families about the different types of insurance coverage. He is passionate about helping consumers find the best coverage for their budgets and personal needs. Eric is the CEO of C Street Media, a full-service marketing firm and the co-founder of ProperCents.com, a financial educat...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.