How to Save on Car Insurance When You're Going on Vacation

If you’re going on vacation or won’t be driving your car for an extended period of time, there’s an easy way to save money on your car insurance.

Dependent on who your insurance provider is, you can tweak your current policy to remove certain features that won’t be necessary when the vehicle is parked for a long period of time and reduce your monthly premium while the car is not being driven. All you need to do is call up your insurance provider or broker before you travel and tell them the dates you will be away or not driving the car, and they can adjust your policy as needed, saving you a bit of money in the process.

ALSO SEE: Smart Ways to Save on Your Auto Insurance Rates Every Year

In some cases, payments can be eliminated completely until you are ready to start driving again, but this isn’t the smartest move. Some drivers see an outright cancelation of their auto policy as a logical solution especially if they are away for quite an extended time, but there are complications to making that decision.

Canceling an auto insurance policy means that when you decide to obtain insurance for your car again, information on your driving file can negatively impact your premium rates. For example, if you had an accident that was forgiven by your insurance provider due to accident forgiveness protection, that accident is now part of your record and will be seen differently when you reapply for a new auto insurance policy.

Also, canceling your policy entirely can cause you to have a gap in your insurance history, which is frowned upon when changing insurance providers. So what’s a driver to do when they’re not going to be driving their car for a while?

If your car is parked in a garage, you can easily insure it against fire, theft, and flood damage, but because there’s essentially no risk of getting into a collision while it’s parked, your insurance company will likely be able to reduce your bill while you’re away. Removing collision insurance while you’re away is a smart move. This way, you’re still covered in case something happens in your garage, but there will be no gap in coverage.

Most insurance companies aren’t going to do it for a few days or even a few weeks, but if you garage your car for the entire winter or are way for months at a time, it is worth looking into.