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Letting Auto Insurance Lapse?

snake020

snake020

Contributor
I'm moving to a location where I won't need a car, at least for the next two years, maybe longer. USAA rep advised me against cancelling my insurance entirely and paying for a policy that covers me in the event I get a rental or borrow someone else's car. They said a lapse of insurance will see my premium go up if I ever activate it again, but I'm really not seeing the value. Anyone who PCSd and got rid of their car have experience with this?
 
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Pags

N/A
pilot
Yes. I lived in Japan for a tour and kept minimal USAA insurance to cover me in the event I went back to the states. Cost was minimal if I recall. It was also very easy to turn back on full coverage when I returned to the states and bought a car immediately upon return.
 
zab1001

zab1001

Well-Known Member
pilot
Super Moderator
Contributor
Doesn't USAA call this a "touring policy?" I vaguely recall having one for CONUS rental use while stationed OCONUS where USAA would not cover me on my POV. It was something stupid like 15 bucks.
 
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exNavyOffRec

Well-Known Member
Don't drop insurance, if you do when you go to get new insurance you will be considered what they call "line 19 auto" which is high risk, it is cheaper in the long run to keep some sort of insurance.
 
IKE

IKE

Nerd Whirler
pilot
This wasn't your question and may be totally irrelevant to your case, but it seems worth posting here as a warning for anyone using the search function:

My home state (actual), the Democratic People's Republic of Maryland, will charge you an outrageous fine for every day you have license plates without insurance. You must turn them in to the MVA if you're going to cancel insurance. I believe the fine exceeds $1,000/month, but it was 15 years ago I had an issue with it.

My home state (of record), TN, just stops sending you annual stickers and couldn't care less what you do with the plates.
 
Jim123

Jim123

DD-214 in hand and I'm gonna party like it's 1998
pilot
zab1001 said:
Doesn't USAA call this a "touring policy?" I vaguely recall having one for CONUS rental use while stationed OCONUS where USAA would not cover me on my POV. It was something stupid like 15 bucks.
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I think that's what it's called and that sounds about like what it cost.

Count me as another BTDT and glad that I paid the nominal fee while I was away.
 
villanelle

villanelle

Nihongo dame desu
Contributor
Yes, the touring policy is cheap. I've only done it for the time our car was in transit because we had insurance when in Germany and we had a car in storage during both our Japan tours, but I recall it being incredibly cheap, and it felt well worth it.
 
Uncle Fester

Uncle Fester

Robot Pimp
None
Super Moderator
Contributor
IKE said:
This wasn't your question and may be totally irrelevant to your case, but it seems worth posting here as a warning for anyone using the search function:

My home state (actual), the Democratic People's Republic of Maryland, will charge you an outrageous fine for every day you have license plates without insurance. You must turn them in to the MVA if you're going to cancel insurance. I believe the fine exceeds $1,000/month, but it was 15 years ago I had an issue with it.
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Yes, I had that issue a couple of years ago with the DPRMD's fine MVA folks. I sold a Harley just before moving away and didn't turn in my plates. When I later moved back they told me I owed something like $2500 in fines for letting my insurance lapse. Fortunately I could toss down the active duty/deployed cards and they waived the fee, but I still had to jump through my ass proving I'd sold the bike out of state.

Florida also couldn't care less what you do with plates. One clerk told me that as far as the state's concerned, you bought them, they're yours.
 
GroundPounder

GroundPounder

Well-Known Member
You may also want to check if the state that you have a drivers license from will suspend your driving privileges when the insurance is cancelled. In some states, they consider you to be an uninsured motorist and then administratively suspend your license. You may not become aware of this until you get pulled over, or in an accident, which can end up with you being arrested.

In Georgia we would have to serve you with this notice, so you would never be charged without having notice to get it fixed. The problem is that if another state has you as suspended, there is no notice required and you would be charged.

If this seems crazy to you, I agree.
 
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exNavyOffRec

Well-Known Member
GroundPounder said:
You may also want to check if the state that you have a drivers license from will suspend your driving privileges when the insurance is cancelled. In some states, they consider you to be an uninsured motorist and then administratively suspend your license. You may not become aware of this until you get pulled over, or in an accident, which can end up with you being arrested.

In Georgia we would have to serve you with this notice, so you would never be charged without having notice to get it fixed. The problem is that if another state has you as suspended, there is no notice required and you would be charged.

If this seems crazy to you, I agree.
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years ago Kansas was like this, but notification was only sending a letter to the address on your license since if you moved you were required to update the state.
 
Rockriver

Rockriver

Well-Known Member
pilot
jsm147

jsm147

New Member
I work in the insurance industry, and it is much more cost efficient to keep your car in storage while you're away. There is a specific clause in the policy that covers for storage, and it drops your rates significantly. The policy will cover liability if you, or the driver given permission to use the car, are at fault and cover the other party's property damage but it will not cover your vehicle.
 
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AllAmerican75

AllAmerican75

FUBIJAR
None
Contributor
I'm using this right now while stationed in Italy. I have an Italian USAA policy and the tourer's/tourist policy for and it's costing me about $6 a month. The agent told me that if I canceled my American policy outright, I would lose all of my discounts for being a long-term customer and would start over when I returned like I was 16 again. The long-term savings are well worth it.
 
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exNavyOffRec

Well-Known Member
jsm147 said:
I work in the insurance industry, and it is much more cost efficient to keep your car in storage while you're away. There is a specific clause in the policy that covers for storage, and it drops your rates significantly. The policy will cover liability if you, or the driver given permission to use the car, are at fault and cover the other party's property damage but it will not cover your vehicle.
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keeping it in "suspense" is what my company calls it, I have 2 like that right now since I just don't drive them (one classic car, one old truck)
 
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