Expert: Charlie Barone - 5/19/2009

Question
I recently totaled a vehicle and my plans are to buy another in a month or 2.
(just a inexpensive cash car 5k or less) i don't need coverage on my vehicle
in the time with out a car. I contacted the insurance agent (I think she's new
my guy retired) she didn't like the idea to suspend it but offered to drop
coverage on a car i don't own anymore. she keeps telling me i don't want to
lapse my coverage?... also if I do suspend my coverage will i be insured if i
drive a girlfriends car or any bodies car for that matter and I get involved in
an accident? doesn't seem like it but I am not in a rush to buy a car right now.
I want to save some money up. i also have a motorcycle with full coverage on
it.. thanks for your help!

Answer
Brandon,

When a car is declared a total loss the insurance company that provided coverage usually takes possession of the car and requests the title. If the car is still in your hands and is damaged beyond a repairable state, it would make sense to drop the coverage. particularly if it can't be driven. I would drop the coverage. Your state's DMV may require you to return the tags, however.

If you have permissive use of a friend's car, their policy would cover you.

Charlie