If you plan on keeping a car that you can't drive - perhaps you are restoring it, or are planning to sell it eventually - you should be aware that maintaining insurance is still important for a number of reasons.
Vandalism, natural disasters and theft
Even when a car can't be driven and is securely stored, it can fall prey to disasters such as a fire or a flood. Vandalism and theft are also threats to your car, even if you keep it in a secure location. To protect yourself against these possibilities, you should have comprehensive insurance coverage on your car. Your home insurance policy may cover an inoperable car for theft and fire. Be sure to check with your broker to see if this applies to your situation and if it is the best choice of coverage.
Harm to an individual or to property
Imagine a situation where your car slips into neutral, rolls down the drive and hits something, or worse, someone. Liability insurance on your car will cover bodily injury to others and property damage to other cars or stationary objects, such a fence or a wall.
Legal requirement to insure your car
Most states require you to carry at least liability insurance on your car if it is registered. Since car registration is generally also considered proof of ownership, it makes sense to keep your car registered at all times. Insurance companies are required to notify the Department of Motor Vehicles when car insurance is canceled and your state may require that you prove you are not driving the car once you remove insurance coverage.
If you still owe money on your car loan
Even if you can't drive your car, if your car loan isn't paid off, the lender may require you to carry at least comprehensive coverage. This protects the loan should the car be damaged or stolen.
The cost of insurance in the future
If this is the only car on which you have insurance, and you let it lapse, you will have to pay higher premiums the next time you need insurance. One of the things insurance companies look for when determining premiums is continuous insurance coverage, even if you do not drive for a period of time.
As you can see, there are some very good reasons to carry some form of car insurance on your car even if it isn't running. Feel free to call us and talk about your particular situation. We can put together a policy that is affordable, meets legal requirements for insurance coverage and protects you against unforeseen risks.
For more information on Dallas auto insurance coverage and a free quote, give us a call at 888-751-7511.
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