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Can I cancel my policy if I am not going to be using my vehicle for a while?
You sold all your belongings - house, baseball card collection, 62 inch plasma big screen - and you're going to travel the world for a year or two. Since you're not going to be driving your car for a while you figure you can cancel your policy until you come back and just start it up again. You can do this right?
You can, but be prepared to pay for it when you get back. You will pay alot more to your insurance company than what you saved by not having a policy at all.
One of the rating factors insurance companies use to determine your rates is continuous coverage while you have an active driver's license. This reflects that you are responsible and will protect yourself and your finance company's interests as well.
By cancelling your insurance you penalize yourself by not having continuous coverage and your insurance company will charge you a higher premium based on the higher risk you pose to them. You may also get in trouble with your state since they may have laws that require vehicles based and/or registered there have to have at least liability coverage.
A more favorable idea is if the car is not going to be driven at all then you can turn in your car's license plates, cancel the registration, and leave comprehensive coverage only on the vehicle. This will cover the car for fire, theft, vandalism, acts of nature, etc., basically, the only things that can happen to it while it sits there in dead storage.
Do this and your insurance company will like you more and charge you less which is the best thing you can hope for right?
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