Suspending your auto insurance while traveling abroad can have both advantages and disadvantages, and whether it’s a wise decision depends on various factors related to your specific circumstances.
Auto Insurance Regulations: In California, you’re required to maintain auto insurance on any registered vehicle unless the registration is suspended. You may face penalties or fines if you allow your insurance to lapse without suspending the registration.
Risk of Uninsured Events: If you suspend your auto insurance, your vehicle won’t have coverage for incidents like theft, fire, or vandalism. If your car is parked in a potentially vulnerable area, you might want to maintain at least comprehensive coverage during your absence.
Continuous Coverage Benefits: Continual insurance coverage can provide benefits, such as qualifying for loyalty discounts and avoiding rate increases associated with lapses. An interrupted insurance history might lead to higher premiums when you reinstate your policy.
Non-Use Registration: You can file for a “planned non-operation” (PNO) status in California, which lets you avoid vehicle registration and insurance requirements as long as the car remains unused. This could be useful if your vehicle stays parked and off public roads during your time abroad.
Alternative Coverage: Some insurers offer a “storage option” for vehicles that aren’t being driven, which might reduce premiums while still protecting the car against non-driving risks. Check with your insurer for these options.
Consider Your Overall Financial Picture: Evaluate your financial situation, the cost savings of suspending coverage, and whether it’s worth the risk of having to pay higher rates later.
Before deciding, consult with your insurance provider to explore potential impacts on your policy and any available alternatives for maintaining some level of coverage while you’re away. This will help ensure your decision aligns with both regulatory requirements and your personal risk comfort level.
