So you are getting older and you don’t drive as much. Your adult children bring you to the store and your doctors appointments, so your car only moves to take it around the block for a weekly drive to prevent engine problems.
Or maybe you are still a new driver at 16 and your parents drive you where you need to go. Maybe you decide to take the shuttle on campus and your car does not move except to go home for summer break.
Whatever the scenario may be, the general idea is still the same. You don’t drive much so you want to save money by dropping your insurance. Before you do that, there are some factors that you should keep in consideration when making your decision.
So Do I Need Insurance?
The short answer is yes and no. In some situations, you do need insurance and not so much in others. I know it can seem confusing, but the truth of the matter is that it all has to do with state, local, and even federal law at times to determine what the right answer is for you.
Do You Have A Car?
If you have a car, many times you still have to to keep the registration up to date even if you only drive it once a year. And in some states, you have to have up to date insurance to have valid registration. In this case, you do need insurance.
On the other hand, just having a licence does not mean that you have to have any insurance. For example, if Susan just got her license at 17, she does not need insurance if she does not have a car to drive. Essentially, insurance is attached to the car not the licence.
Of course, it is always a good idea to check your local laws to see exact rules and regulations.
But What If I’m Not Driving The Car At All?
It’s never a bad idea to consult with your insurance company on this. For example, Root car insurance in Colorado helps their customers navigate Colorado-specific state laws. But in most states, if you do not drive the car, you don’t have to have insurance on it. So your old beat-up car that sits in the garage all day does not have to have insurance just because it exists.
The first reason is that if something happens to the car you can still get your money’s worth for it.
For example, if your car gets hit or damaged by someone else, having insurance may allow you to be able to at least pay for it to be removed off of your property. This is especially handy if the person did not have insurance on their vehicle.
Second, the insurance may be good for you in situations where you may have to drive someone else’s vehicle. Maybe that person does not have insurance and you didn’t know. Your own personal insurance would keep you from getting a ticket or going to court. If you are in an accident, nobody wants to be blind sighted from a lack of insurance.
This does not mean that you should keep a full coverage policy when it comes to insurance. A basic policy or ‘what keeps you legal’ is enough. In some cases, this could be 75% less than what you would pay for full coverage.
We hope this article helps you with your decision and that you were able to learn something that you did not know before. This is a good topic to consider, and of course, it is always best to make the right choice for your personal needs.