No, you can’t “pause” car insurance in the USA—but you can reduce coverage or cancel it temporarily if your car is unused. Skipping insurance risks fines, license suspension, and financial disaster. Keep reading for legal hacks to save money without breaking the law.
Can You Pause Car Insurance? What 99% of Drivers Don’t Know
Car insurance isn’t like Netflix—you can’t just hit “pause” and restart later. But if you’re storing your car, traveling long-term, or tight on cash, there are safe, legal ways to lower costs without fully canceling. Let’s break down your options, risks, and real-life examples.
Why You Can’t Technically “Pause” Car Insurance
Car insurance companies in the U.S. don’t offer a “pause” button because:
- State Laws: 48/50 states require continuous coverage if your car is registered (except Virginia and New Hampshire, where you pay a fee).
- Risk Gaps: Insurers hate coverage gaps—they raise your rates by up to 30% when you restart.
- Fraud Prevention: A “paused” car could still be driven, leading to uninsured accidents.
📊 What Happens If You Cancel Insurance?
| Scenario | Risk |
|---|---|
| Driving uninsured | Fines ($500+), license suspension, lawsuits |
| Storing your car | Theft, fire, or damage not covered |
| Letting insurance lapse | Higher future rates, denied claims |
4 Legal Ways to “Pause” Car Insurance (Sort Of)
- Switch to “Storage-Only” Insurance
- What it covers: Theft, fire, vandalism (no liability/driving).
- Cost: As low as **15/month∗∗vs.fullcoverage(15/month∗∗vs.fullcoverage(150+).
- Example: John stored his classic Mustang for winter, saved $1,200/year by switching to storage coverage.
- Drop Coverage You Don’t Need
- Remove collision/comprehensive if your car is paid off.
- Warning: You’ll pay out-of-pocket for repairs.
- Cancel Insurance (Only If You Surrender Plates)
- Legal in most states if you turn in your license plates and registration.
- Check your DMV rules first!
- Pay-As-You-Drive Insurance
- Companies like Metromile charge per mile. Good for low-mileage drivers.
When “Pausing” Insurance Makes Sense (Real Stories)
- Military Deployment: Sarah paused her insurance while deployed overseas by switching to storage coverage.
- College Students: Mark saved $800 by canceling insurance when his daughter left her car at home for college.
- Financial Hardship: Maria reduced her coverage to liability-only during unemployment, saving $90/month.
⚠️ Never Do This:
- Drive Even Once Without Insurance: A single accident could cost $100,000+ in damages.
- Forget State Rules: New York suspends your license immediately for lapsed insurance.
FAQs: Your Top Questions Answered
Q1: Can I pause car insurance for 1 month?
No—insurers bill monthly but require continuous coverage. Cancel and reapply later (but rates may rise).
Q2: What if my car is broken?
Switch to storage coverage. Repairs aren’t covered unless you have full insurance.
Q3: How do I save money without pausing?
- Raise deductibles
- Ask for discounts (safe driver, bundling)
- Compare quotes yearly (Use NerdWallet’s Tool)
Q4: Will my rates go up if I cancel?
Yes! A lapse in coverage can increase rates by 20-30%.
Pro Tips to Avoid Insurance Gaps
- Plan Ahead: Call your insurer before canceling.
- Check State Laws: DMV.org has rules for all 50 states.
- Use Public Transport? Consider non-owner insurance if you drive rentals occasionally.
Bottom Line
You can’t “pause” car insurance, but smart adjustments can save you hundreds. Always keep some coverage to avoid legal/financial nightmares.
Need Help? Compare quotes today
Melanie Lopez is a passionate content specialist at American National Car Insurance, dedicated to simplifying car insurance for every American driver. With years of industry expertise, she crafts informative and engaging articles to help users make confident insurance decisions.