My Car Just Sits. Can I Drop the Coverage?

WV & OH ONLY

"I live in West Virginia and I've got a car sitting in the yard that I never drive. Can I just drop the insurance on it?"

Paying every month for a car that doesn't move is frustrating. I understand.

In West Virginia, you can't simply drop the insurance on a car that's still registered, because a registered vehicle must stay insured even if it's parked. Your choices are to keep coverage, return the plate, or use the state's seasonal storage process if the vehicle qualifies. Ask before you drop anything, in West Virginia or Ohio, because a wrong move can cost a lot more than the premium.

I'd love to make this simple and cheaper. We want you paying as little as you legally and safely can.

There's a real difference between dropping coverage, reducing it, and storing a vehicle, and companies treat parked cars differently. We quote with 13 companies, and we can look at what actually fits a car that doesn't move.

I won't pretend this is purely educational. I want to earn your business. Call before you cancel. That one phone call is a lot cheaper than a suspended license.

WV & OH ONLY

West Virginia Code 17D-2A-3 says every owner or registrant of a vehicle required to be registered must maintain security for the full registration period. It also says an owner who drops that security during the registration period has to surrender the plate to the DMV right away.

The West Virginia DMV puts it plainly: if you cancel your insurance, you must return the license plate. For a car that doesn't run or isn't being used and still has a valid plate, the DMV says to keep it insured or send the plate back.

Assume so. The DMV says all currently registered vehicles are subject to insurance verification, and it runs that check electronically.

Under West Virginia Code 17D-2A-7, a first offense can mean a 30-day license suspension. A second one within five years can mean 90 days and a revoked registration. All of that over a car you weren't even driving.

There is, and it's narrower than people hope. The law excuses seasonal or periodic use vehicles for the part of the year they're stored. Think of something stored part of the year and used seasonally.

Before storing one and removing the insurance, the DMV says you must submit the Seasonal Statement of Insurance, form WV-4B, with your storage dates. During those dates the DMV won't electronically verify coverage on that vehicle. When you start driving it again, it has to be insured.

A car that just sits all year because you quit driving it may not be what that rule is for. Check before you count on it.

Ohio's law is written differently. Ohio Revised Code 4509.101 says no person shall operate, or permit the operation of, a motor vehicle in the state without proof of financial responsibility. I don't see a separate exemption in it for parked cars.

If the state does suspend you, the same statute lets the registrar end it without the usual reinstatement conditions in limited cases, such as proving the vehicle was inoperable or a seasonal vehicle was out of season. That's relief after you've got a problem, and it isn't a plan. Ask first.

This is where I can often help. Liability and comprehensive are different coverages. Depending on the company and your state's rules, there may be a way to keep the coverage that protects a parked car from theft, fire or a falling tree, and adjust the rest. Don't assume, though. Taking off the wrong piece can create the same problem you were trying to avoid.

Then the lender gets a say too. Most loan agreements require physical damage coverage. Read yours or call your lender before you change it.

It can. Many companies ask whether you've been continuously insured, and every company treats a break in coverage differently. If you still drive something else, you'll want to keep your other coverage steady. If you want to understand what you'd be dropping, here's how liability coverage works.

1. Figure out whether the car will stay registered.

2. Call me before you cancel anything.

3. If you qualify for seasonal storage, get the WV-4B in before you drop coverage.

4. If you're returning the plate, do that when you cancel, not months later.

Got a car that just sits? Don't cancel it yet. Call me and let's figure out the right way to handle it.

WV & OH ONLY

Next in the series: Part 26, What Is a CLUE Report, and How Do I See Mine for Free?