How to Cancel Your Car Insurance Safely and Legally

Is it safe or legal to cancel your car insurance? What about registration and the laws around having car insurance for your car? Well if you plan to NOT drive the car at all and plan to garage the car, then you might be able to save some money. This is a great chance to save a bit and spend it on your vacation instead if you plan to go somewhere for an extended period of time.

How’s it going everybody this is pete the bush today i’m going to talk about cancelling your insurance when you’re not using it or maybe if you’re going on vacation this video is brought to you by weeble don’t forget to get your two free shares of stock just for signing up and depositing a hundred dollars check out my referral link down in the video description

Below my insurance for my tesla cost ninety five dollars this is three dollars every single day and sometimes even with the insurance turned on i would go probably one week or two weeks without even using the car because i have an alternate form of transportation which is an electric scooter or if i really want to i can ride a bicycle now i’ve talked about

Canceling insurance before and a lot of people says well if you cancer insurance and something happens to your car while it’s parked well it won’t be insured anymore yes this is true but if you have a home and if you have a garage and you’re not going to be parking it on public roads the risk to this is significantly reduced first let’s talk about if you’re going

On vacation for let’s say a month or something out of state out of country then you absolutely don’t need your car insurance you can cancel this if you’re not using your car insurance but there are tips and tricks to do this because i’ve tried it in a way where i did not notify the dmv and then i got a 17 penalty after 30 days of not having insurance your dmv

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Is gonna send you a notice of suspension which means you cannot drive your car anymore even if you have a valid insurance you have to send them your valid insurance pay the penalty fee and then they would send you a letter saying yes your registration is valid again and you can drive your car again now to prevent yourself from paying the 17 feet you can actually

Do something called filing for an affidavit of non-use now i’ll put this link down in the video description and this is valid for california only it might have something similar for other states it might be illegal to even cancel your insurance even if you don’t drive your car in other states i am not too sure about this i am only talking about california for now

Now there’s also some other weirdness going on here because if you’re going on vacation and you cancel your insurance then you cannot rely on your credit card’s rental insurance policy because usually if you use your credit card and you rent a car you can deny the rental insurance coverage and save yourself 20 to 50 or so but most of the time these free rental

Coverages on your credit card requires you to have a standard car insurance already so if you cancel this this is no longer going to work so you have to be mindful that if you’re going vacation somewhere you are also not renting a car or driving a car while you’re on vacation previously i cancelled my insurance because of this covid madness i wasn’t planning on

Going anywhere far anyway that’s why i cancelled my insurance for a good handful of months this is how i learned about all this and usually this is how i learn about stuff because i push things to the envelope i didn’t even know if i can cancel my insurance i just did it i got penalized but now i know exactly how to do it and i can tell you guys in this video

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How to do it properly so you don’t get a notice of suspension which is about 17 there are other tips and tricks that i learned along the way because you can actually cancel your insurance and within 30 days with most insurance you can reinstate your insurance without re-quoting it because if you cancel it for longer than 30 days sometimes because there’s a lapse

In your insurance they’re going to increase your insurance rate my tesla insurance was 90 dollars before now it’s about 94 50 or so so it did increase by a whole four dollars and fifty cents over one year this is essentially 60 more per year and i cancelled it for two or three months or so so i save 270 dollars so you do the math it might or might not be worth it

So therefore if you’re canceling for shorter than one month you can save that premium for that one single month and then you also won’t increase your insurance premium for your car after you reinstate the insurance for your car you can go back on the dmv website file the affidif for non-use and then you can just turn it on again saying okay you have insurance

You’re gonna start using your car again now personally i plan to cancel my insurance for longer than one month i am going to bear the responsibility of having my insurance getting increased bumped up a little bit more after this do note that you can only file for this additive of non-use if your registration is valid my registration costs about 750 or so so this

Is a fee that you have to pay and you cannot actually take this money back from dmv if you file for non-use you still have to pay this amount so so this amount for registration is not going to be saved and if you plan to not drive the car longer than the expiration of your registration then you would file for something called a plan on operation you can see this

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On your registration you either pay the registration fee or you pay the planned non-operation fee which is significantly lower it usually ranges like around 30 or so do note that if you file for additive of non-use you cannot park this car on a public street or drive it on a public road this means that if you live in an apartment complex you cannot park your car

On the street at all you need it to be on private property in your garage on your property and you cannot take this car onto public roads at all or if this ever happens and the police catches you then you’re gonna get fined for uh not having a valid registration all these are really fine points i figured that myself i feel like this is pretty useful information

If you are trying to save a little bit money while you go on vacation or if you just want to cancel your insurance for short duration if you know that you probably not going to head out get groceries or anything i personally don’t really need to get groceries for like two weeks at a time and even if i really need groceries i can take my electric scooter get the

Groceries come back i have personally not needed to go anywhere other than really really local places with my electric scooter so if you have an alternate form of transportation this might be a lot more viable or if you live in a big city you can just go downstairs to get the groceries and this is a lot more viable thanks for watching this video i hope this helps

You out on saving a little bit of money if you are going on vacation and you want to do something with canceling your car insurance don’t forget to give me a like and subscribe for more thanks for watching

Transcribed from video
How to Cancel Your Car Insurance Safely and Legally By BeatTheBush

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