• In general, if you register the car in your state, you have to have some type of insurance coverage, although the specifics vary from state to state.


    Your 5-Minute Guide to Car Insurance

  • Yes, it is generally required by law to have car insurance on your car, even if it is not being driven. This is because car insurance provides financial protection for damages or injuries that may occur as a result of an accident or theft. Additionally, if you are the registered owner of a car, you may be held liable for damages or injuries caused by someone else driving your car, even if you are not behind the wheel. So, it's important to have insurance coverage on your vehicle even when it is not in use.
  • Different states might have different laws, but in my state, you don't have to insure a car if you don't drive it. Where the problem comes in, however, is your insurance company. Insurance companies want to see continuous insurance coverage on a vehicle. Any lapse in coverage and they treat it like a new policy when you do go to insure it again. That means you automatically get put in a high-risk category which brings high monthly rates. There is such a thing as "storage insurance" where you pay a lower premium. This allows you to maintain continuous insurance, but at a lower rate. But to qualify for this, you must not drive the car (even if you only sneak down to the convenience store at night). If something happens and you're involved in an accident, they could refuse to pay any damages. Talk to your insurance provider for more details.
  • You don't need car insurance if your car is fully paid for. That's your business, just don't drive it to avoid serious penalties. But if you have a new car, finance companies require you to have car insurance while you are making payments. Sometimes they will buy an additional policy without asking the owner, adding the costs to the monthly car payment.
  • It depends. In some places, it is required by law to insure a vehicle, even if it is stored in a garage and never leaves. Some places require a different sort of insurance for exhibits. Some insurance policies won't cover damages from a fire started by an uninsured vehicle. Other times, an insurance provider will hold it against you if you have a lapse in coverage or if they become aware that you possess an uninsured vehicle. Sorry, but there's really no universal answer.

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