Cars are antithetical to the cheapskate lifestyle. They suck money like an engine-powered Hoover and I really wish I didn’t have one. It’s just that the alternative - lack of freedom to go where I want when I want - is even worse. So I have a car. I actually like my car; I just dislike nearly every situation I get into when I get into my car, and I dislike paying for the overrated privilege of owning it. It’s kind of like a demanding girlfriend with a very unappealing personality. But since, as I said, it’s my hesitant choice to continue to own a car, I’m constantly looking for ways to lessen the cost of car ownership. I’d like to share with you one small trick I’ve discovered.

When you leave town, you can suspend your liability insurance and save a bundle. You don’t have to go as far as canceling your insurance coverage entirely, although this may also be a choice you’ll want to consider. You just temporarily suspend all coverage except for the absolute minimum level of comprehensive insurance for the period that you’re out of town. When you get back, you let your car insurance company know that you’re back and that you want to restore your previous levels of coverage.

Here’s a little Car Insurance 101 lesson in case you have no idea what I’m talking about. Liability insurance is legally required in nearly every state and covers any damage caused by your car to other parties. Comprehensive insurance “comprehensively” covers everything not covered by another form of insurance - i.e. damage done to your car by other cars, damage due to vandalism and theft, etc. Liability insurance in general tends to be the most expensive form of insurance, so turning it off can yield significant savings.

Clearly, there’s no reason for you to pay for liability insurance, which only covers damage incurred by your car, when you’re not around. The exception is if your car is Christine and it’s going to go out on the town and mow somebody down in your absence. Also, depending on where exactly you’re going to put your car, I suppose you may want to maintain comprehensive coverage, since it could still get stolen. Maintaining some coverage also lets you avoid the hassle of completely reapplying for car insurance, and may prevent you from losing a “good customer” discount if your insurance company gives you one.

The catch is that laws regarding liability coverage vary widely from state to state. Some states, like New York, require you to maintain liability coverage even if your car is sitting in storage, so you can forget using this strategy there. In California, you have to file an Affidavit of Non-Use or the DMV will freak out when it finds out you don’t have insurance. You also can’t leave the car parked on any public roadway, or Officer Friendly will come around and issue you a Friendly ticket.

Suspending your insurance while you’re away will save you money, but make sure you research your state’s laws before pursuing this strategy!

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