Question about paying car insurance (loan, buy, maintenance)

[d_vader123]

I'm having some financial hardships right now, and was thinking that one way I could save money is to live close to work and not have to drive. Not driving would save money on gas, maintenance, and insurance.

My question is, if I still own the car and make monthly payments to it then do I still have to get insurance?

I heard that I still do but if I'm not driving the car then what's the point? I would be angry if I still had to pay insurance because it would feel like the government is forcing us to pay insurance just to own a car.

On the other hand, I do understand that I should have insurance just in case something happens to it, but in all seriousness, if someone hit a legally parked car on my driveway. Then does it make a difference if I have insurance? It's the other guy's fault.

Anyway, I would like to save a couple thousand dollars a year. That's a lot for someone in my position.

Thanks,
Trying to be a responsible US citizen.

[tahiti]

insurance is required.

[BobKovacs]

The government might not force you to have insurance, but the company that holds your loan certainly would. Minimum insurance limits are a term of any car loan- without coverage, the lender will not be protected if the car was damaged, stolen, etc.

[manderly6]

And what is to prevent people from saying they won't drive the car and then do drive it? Or what if an emergency pops up and you need to use the car?

[tahiti]

Originally Posted by manderly6

And what is to prevent people from saying they won't drive the car and then do drive it? Or what if an emergency pops up and you need to use the car?

true - if the OP is concerned that the gov is requiring insurance to just "own" a car (the assumption being he won't drive it), he can not have one and save a ton!

[G.Costanza]

Originally Posted by d_vader123

Anyway, I would like to save a couple thousand dollars a year.

You should be able to scale back to a min liability policy and lower your premiums substantially.

[manderly6]

Actually, some insurance carriers offer low mileage insurance. You should definitely check that out.

Search for Companies with Low Mileage Discounts

If your present car insurance company doesn't offer low mileage discounts, you should find a company that does. Use the Internet to search for companies that offer low mileage car insurance discounts. Use your favorite search engine and simply enter terms like “low millage car insurance” or “low mileage insurance discounts.” While finding a company that offers these types of insurance discounts can save you a lot of money, make sure you wait until it is time to renew your policy before switching companies. Many companies impose hefty cancellation penalties if you cancel your policy early.
Consider Pay as You Drive Car Insurance

Although it has been available in Australia and Europe for a number of years, pay as you drive car insurance has only been available in the United States for about five years. Now, there are insurance companies that reward drivers that don't drive very often by charging them relatively low car insurance rates. These pay-as-you-go car insurance companies charge insurance rates based on number of miles you drive. Companies in the United States that offer this type of coverage are GMAC auto insurance, Progressive and a few others. You can use the Internet to search for pays you drive insurance companies that offer coverage in your state.

[SonorityGenius]

Liability at min. is required. Shop around for a very very basic coverage with max ded (if you honestly will NOT drive the car)

Another possibility is to sell the car.. pay off the loan?

[d_vader123]

Thank you. These are good suggestions. I'm going to look at minimum liability coverage, but also get more info about low mileage discounts.

I didn't think about the fact that my car could get stolen or that my loan company would require it. In that case, I will need insurance. My only choice would be to go cheap.

By the way, does low mileage discount means that I must only have driven a limited number of miles a year to get the cheaper insurance? Thought I'd ask before I look it up myself.

Thanks.

[timneh5]

Originally Posted by d_vader123

Thank you. These are good suggestions. I'm going to look at minimum liability coverage, but also get more info about low mileage discounts.

I didn't think about the fact that my car could get stolen or that my loan company would require it. In that case, I will need insurance. My only choice would be to go cheap.

By the way, does low mileage discount means that I must only have driven a limited number of miles a year to get the cheaper insurance? Thought I'd ask before I look it up myself.

Thanks.

What type of vehicle do you drive? Is your insurance high because you drive an expensive car? You can sell your car and buy something more economical to insure.

Our insurance is reduced by the number of miles driven to work.

If you can operate a motorcycle, insurance is less expensive. (It was in the past.)