Driving Less? Don’t Cancel Your Car Insurance, Here’s Why
Yesterday at about 4 pm every mobile phone within earshot of me blasted an alert. That alert was from Governor John Bel Edwards informing us that his Stay-at-Home order had been officially extended until April 30th. That means a month of not really going a lot of places for Louisiana residents who understand the importance of minimizing public exposure to the coronavirus threat.
That has lead many people on social media to ask, "Should I cancel my car insurance for the month since I won't be driving"? Well, Kudos to KATC reporter Katie Easter. She took those questions and found some answers.
In a nutshell, the answer to the should I cancel my insurance question is no. If you've ever had insurance lapse on a vehicle it's a logistical pain in the backside. For some reason, the state doesn't want to believe you when you tell them that you didn't drive the car during the time it was uninsured. Well, that was my experience anyway.
There is also the added expense that you'll run across when you have to re-register that vehicle. Plus there is more paperwork than anyone who is not government bureaucrat wants to deal with.
Now, if the Stay-at-Home order has your finances in disarray you can get some relief on your insurance. The Louisiana Department of Insurance actually has a plan in place to help consumers who have to pay late or can't make an insurance payment at this time.
You might actually want to consider talking to your agent. If you inform them that you're going to be driving a lot less, they might be able to re-rate your coverage. That could save a little cash in the short term. Just remember to re-adjust your insurance plan when you return to normal driving habits.