Expert: Richard Hixenbaugh - 3/6/2010

Question
Hi Richard

I have recently found myself in a great deal of financial hardship in terms of driving, and I have a feeling once I get everything taken care of, I will no longer be able to afford to drive.  I feel the easiest thing to do at this point is to stop driving and cancel my auto insurance, but I want to make sure that canceling my coverage won't cause any long term problems when I choose to drive again.

I live in Los Angeles, CA, and my concern is how to avoid what appears to be a "lapse" in coverage.  I have no intention of driving anyone's car while I am not carrying insurance, I don't drive for work, and my present car was originally my parents', but is now in my name.  If I do cancel my insurance, should my parents put the car back in their name?

I am not exactly sure how long I plan to not drive, but are there any benefits or downsides to a certain timeframe (i.e. 3 months, 6 months, 1 year)?

Do insurance companies tend to judge people who have coverage for a given period of time, then cease?  My driving record is not great, but I am not required to carry an SR-22.

Thank you so much for your time, I greatly appreciate it, and I hope to hear from you soon!!

Answer
Hi Kristen,

If you do not have insurance for more than 30 days, it will be like starting over. It does not matter why you did not have insurance, you will pay a little more for the first year or so when you decide to get insurance again. However, when you consider what you will be saving by not having insurance for a period of time, it won't be so bad.

I hope this helps
Richard Hixenbaugh