|Question: I'm traveling to Europe this summer and won't need my car. Can I get my auto insurance suspended to save money?|
You may be able to, but it's not always a good idea. Many bad things can happen to your car, even when it's not being driven. The other-than-collision (also known as comprehensive) coverage portion of your auto policy insures you against damage to your vehicle caused by fire, flooding, theft, vandalism, and other events. And it's also important to remember that you may continue to need auto insurance coverage if you drive while on vacation. But if you're confident there's little risk that your car will be damaged or stolen while you're gone, it may be possible to temporarily suspend or reduce your coverage.
Suspending or reducing your coverage may be difficult, though. Your state probably requires that you carry a minimum amount of insurance coverage while your vehicle is registered. So, unless you intend to suspend or cancel your registration, you may not be able to completely suspend your auto insurance. However, depending on the laws in your state, you may be able to suspend parts of your policy--ask your insurer. But if you have a car loan, the lender may require that you keep your car fully insured. Check your loan documentation carefully before you take steps to suspend any portion of your insurance coverage.
But don't just stop paying your premiums and let your policy lapse while you're away. If you do, you may have trouble getting affordable auto insurance in the future, because this type of cancellation will be listed in the insurance company records and may even show up on your credit report.