Monday, September 27, 2021

Do I need car insurance if I don't drive my car


Car insurance is one of the most important insurance for Americans. Car insurance is necessary to safeguard your beloved car from any accident they might face on roads. It's like a security for your loving family member. Anyways, let's answer your typical question now. 

Do you need car insurance when you don’t drive a car?? 

"Do I have to insure a car if I am not driving it" is one of the most common questions that come from new car owners. Let's discuss this part now, briefly. 

Do you need insurance on a car that doesn't run? 

Yes, ensuring your car is the best way to stay safe and secured. Even if your car is not running, you have to insure it. If the car isn't going in stress frequently, you can ensure your car with the lowest insurance policy. This will cover the minimum demand. Mostly in all the states of the US, an uninsured car is liable for fines. The owner is liable to be jailed. 

car insurance
Image credit: Policy Boss

Can I drive without car insurance? 

No, you can't. Technically speaking, it's risky to take out a vehicle that isn't insured in the states of the US. This stunt act from an individual can cost hundreds of dollars even though they might end up in jail because most of the states have declared, driving uninsured cars is illegal. Therefore, your question "I am not driving these I need car insurance?" is answered here. Well, there's a possibility of making this law untrue in only two states of the US, where you can drive a vehicle without insurance, Virginia, and Hampshire. Hence, we feel your question "Do I need car insurance if I don't drive my car" is clarified. 

Exceptions that allow not having car insurance

Here are the few exceptions that will allow you not having car insurance:

  • All the 50 states of the US don't have a car insurance rule. Hence, there are few states out of 50 who don't bother whether you have insurance or not. New Hampshire and Virginia don't need you to have car insurance. Although New Hampshire will ask for proof of liability when encountered by police. 
  • If your car is old and you don't use it on the street, you don't need to insure it with any valuable policy package. The minimum package will be enough. 

Do I need comprehensive car insurance when I am not driving?

Although comprehensive means are detailed, extensive, and thorough, for car insurance, comprehensive doesn't mean your insurance company will cover everything. Every company has their set of own rules guided by state laws. Therefore, it's difficult to distinguish the differences in all 50 US states. But we will try to explain the details in brief.  

What does a comprehensive car insurance cover? 

There are few things that comprehensive car insurance cover:

  • Animal hit. If your car hits an animal or an animal hits you, you will be covered by comprehensive car insurance. A collision with an animal is also considered under comprehensive car insurance. The insurance laws vary from state to state. 
  • Natural disasters or any damage. If your car is hit by an earthquake, flood, tornado, cyclone, fire, storms, hails storms, etc. You will be considered a liable member of the comprehensive car insurance cover. 
  • Glass damage. If your car has any glass damage which includes windows and windshield you will be liable for comprehensive coverage.
  • If your vehicle is attacked by rioters, vandalized or burnt, you are liable for this loss.

These are the answers to your "What does comprehensive auto insurance cover?" Question. 

What does a comprehensive coverage cover?

Comprehensive coverage helps you replace or repair parts that have been stolen, damaged due to natural disasters, calamities, fire, storm, animal collision, glass breakage like windows, with shields, etc. In simple terms, if it's not a collision, comprehensive coverage will cover you. 

We mentioned animal collision, comprehensive coverage will also cover animal damage like a squirrel getting inside your car and destroying any important vehicle part. Animals also include rats, if rats are responsible for any damage, insurance will pay you. Collision with animals generally occurs in the rural and woodlands, hence the state laws will differ from other state laws. 

Also, comprehensive coverage doesn't cover your medical expenses. Basically, comprehensive coverage covers everything except the collision. Collision coverage is altogether a different indirect policy. That's it, your answer for "what is covered under comprehensive insurance?" is mentioned above. 

Can we insure a car for someone else to drive???

The car insurance basically insured the car and its drivers. Primarily, the car owner is the insurance holder. Therefore if you, the car owner, lend your car to your best friend, first cousin or your brother, they will be covered by insurance money. If another person is willing to pay the coverage money for the car owner because s/he is driving it, insurance companies can allow that. Although, these rules vary from state to state. 

What happens if someone else is driving my car and gets in an accident? 

While driving your car, your friends/lender/family meet with an accident. Car insurance says you are not liable for it. Let us explain. 

  • The insurance coverage you have for your car is for the car and the driver. You, the car owner will not be liable for the accident if anyone else is driving your car. 
  • If the other person driving the car has the owner's permission, insurance help will be extended to the driver. 
  • If the owner's car is lent to someone else, and while driving, the lender causes an accident. The primary insurance coverage will be extended to the injured person.
  • If the car owner is negligent in allowing anyone to drive the car, h/she will be responsible for the accident called "negligent entrustment". 

If I cancel my car insurance will the car registration be canceled too??

No, canceling car insurance will not cancel your registration. But there are a few aspects that you need to check before you cancel the car insurance. These are some dangers of canceling car insurance even though you don't use the vehicle regularly. 

  • In the US, car insurance rules vary from state to state. Therefore in many states, it might be risky to travel in a car without insurance. Also, when you visit the insurance company for new car insurance, they might reject providing you one. 
  • Car insurance is crucial because it will cover your primary expenses. If you don't have any insurance, you will be liable to heavy expenses. Additionally, if you are caught traveling in the US without car insurance, you might face heavy penalties. Moreover, you can be liable to pay a significant penalty amount varying from state to state. Again, let us remind you, the penalty and the rules are different for different states. 

Penalties for driving without insurance

"Do I need car insurance if I don't drive my car?" The question is disturbing because it is illegal to drive a car without insurance in the US. There are a few reasons for making this act an illegal one, digging deep- 

The cost of any damage after a car accident is hefty. This will cost you a lot of money. Primarily, you have to pay for the injured person(if it's your fault),  like his hospital bills, recovery bills, car repair bills, etc. Secondly, you have to repair your car and pay for it along with your hospital and medical bills. It's huge! Also, there's a chance that you might get sued. 

If you are caught in the US states except, Hampshire and Virginia you might have to pay  penalties for driving without insurance are,

  • Fine for driving without insurance
  • Jail for driving without insurance 
  • Suspended license, registration or number plate
  • Court fees and reinstatement fees

In Virginia and Hampshire, it's not illegal to drive a car without insurance, but you have to keep your liability ready and with you. If you encounter a police officer, you have to show your liability papers to him in order to save yourself from getting jailed or sued! If you are driving a car without insurance in Michigan, you might have to pay for the casualties even if you are not the one who caused the accident. 

Concluding the article, we can surely say that car insurance is very important to avoid any hazard caused by an accident or natural calamities.  The insurance will cover your and the other parties, primary expenses. Hence, you can have a stress free life! 

Hey there, I'm Shuvam, a full time blogger who has the passion of sharing knowledge related to tech, design, finance, health, fashion and many more.
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