rian_rugby

I've been commuting to work the last 6 weeks, and coincidentally, my car lease just ended. I'm enjoying commuting so much that I've started riding my bike everywhere (grocery store, gym, etc). I plan on returning the vehicle and going CAR FREE!!

I was going to do this without any hesitation until I saw a couple of different people post on forums that once you get rid of your auto insurance it's a pain in the *ss to get it set up again the future and my rate may go up!

Is there any truth to this and for what reason? I don't feel like I should be penalized for not wanting to fork over $$$ for auto insurance I won't be using. The whole point is to save money (no car payment, insurance, repairs, gas, taxes). If I am going to have to keep my auto policy I'm going to be a bit bummed out.

Thoughts?

JamesRL

I suggest you talk to a broker about it, as the rules may be different in your jurisdiction.

In Canada, I don't beleive this is the case, but I'm not in that business. If you lose your license because of legal issues, yes then it is expensive to become insured again. But my understanding is that insurance companies look at the date you first got your license and the number of years since to establish how long you have been driving and assess your rates from there. Insurance rates go down as you age, unless you have claims, accidents, tickets etc.

rian_rugby

Thanks for the info!

I guess I should clarify that I live in the U.S., so not sure if the system works differently here. Apparently you are a higher risk if you haven't had insurance for a while. Likely a way to raise your rates when you decide to go back to driving and make up for lost revenue.

achoo

Maybe you can keep your insurance just for "occasional" rental car use? Maybe 2-3 times a year? Heck, it'll probably even be true, and pretty cheap at that.

wahoonc

True. Ask your broker about a non owner policy. I will have to check, but I believe my son may have one or he may be listed on his sister's policy as an occasional driver.

Aaron

xuwol7

It depends on your driving record etc.
It is really a non-issue, 3 years ago I sold my Toyota Tundra and commuted by bike exclusively.
I recently bought a used Toyota Corolla for the very rare times when I need to drive.
I had no problem getting min liability and pay $17.00 a month for auto ins.

_Cyclopath

I just had a similar conversation with my ins co. She said that my account was "preferred status" or something like that and that if I cancel it then get a car in a year or so that I'd lose that status and have to go through more of a process to get my insurance going again (at a higher rate).

She changed my plan to something that runs super cheap but keeps my preferred status - like $12 per 6 months or something like that - still insuring the vehicle I sold, but of course I'll never make a claim on it. Basically, she said that when I buy another vehicle, I can just add it in with a phone call. Very reasonable to me as I expect I may get another vehicle in a year or two.

Homebrew01

Fyi

Living Car Free

wahoonc

OP doesn't state where they are. It varies hugely from state to state not to mention country to country. In some states the insurance goes with the driver, in others with the car, and in yet others both. I asked my broker about a non owner policy and got a blank stare. Apparently they are not offered in NC. Not that it matters I live on a small farm and we will most likely always have a few vehicles around.

Aaron

rian_rugby

Thanks for all the info so far. I happen to live in North Carolina, so I guess I'll need to see if I can keep the insurance on my lease (even though I've turned it in) and try to get the rate lowered somehow, so I can keep my policy going.

Looigi

FWIW, and if it hasn't already been mentioned, there is something called non-owner auto insurance to cover personal liability when borrowing or renting a car. Sometimes it's available as an extension on home owner's, renter's or personal umbrella insurance policies. IDK in what states or who offers it.

ironwood

This thread made me think of something. What recourse do you have if you are hit by an uninsured driver while you are on a bicycle? Most auto policies have uninsured driver coverage. Most uninsured drivers are probably judgement proof. There have been a few cases in MA of pedestrians or cyclists hit by undocumented immigrant, uninsured drivers, and the driver takes off for home.

So if you let your automobile policy expire, do you have any coverage?

Tundra_Man 

If you have standard health insurance that should help cover any medical expenses. It wouldn't pay for the loss of a bicycle, but frankly if I'm hit by a car bicycle damage is not at the top of my worry list.

spdracr39

In states that require liability insurance it is much more expensive to get coverage if you don't have existing coverage. They figure that you bought it just to get tags and let it lapse which makes you a higher risk somehow. I am sure they have a minimal cost non owners policy that will keep you covered if you rent or borrow a car.

ironwood

Maybe the car free forum has someone who knows more about this.

rian_rugby

Thanks for all the info so far. I happen to live in North Carolina, so I guess I'll need to see if I can keep the insurance on my lease (even though I've turned it in) and try to get the rate lowered somehow, so I can keep my policy going.

rian_rugby

New to the site and first time ever creating a thread. Sorry about not posting in the correct forum. I think you guys gave me enough info to convince me that a non-owner's policy is the way to go.

Anyone know if that would cover me if I happen to hit or something on my bike? I don't plan on doing this, but heaven forbid someone walks into a bike lane and I plow over them, do my auto or renters insurance provide coverage? Sorry, again this is probably not the correct place to post!

I-Like-To-Bike

Doubtful.
That is probably the last place to seek accurate auto related information. Good though for a lot of ranting about autos, auto expenses, and motorist/motoring culture.

Drew Eckhardt 

Standard medical insurance doesn't pay for lost wages, and disability insurance only replaces a fraction of them.

Disability insurance typically only replaces 60% of your wages, unless you're a well-paid professional and run into the benefit cap ($1500/week on my short-term plan, $8000/month long term).

Group long term disability insurance usually has a limited "own occupation" period (typically two years) after which the ability to work in a different lower paying profession means you stop receiving benefits. IOW, a former lawyer who could work as a Wallmart greeter would cease receiving benefits.

That's why it's prudent to have the maximum uninsured/under-insured coverage on your auto-insurance policy with the $1M UIM option on your umbrella policy.

wolfchild

Car-free here !!....I canceled my auto insurance few years ago when I went car-free. I still have home insurance with the same insurance company. They told me it's not a problem and if I ever decide to get a car in the future I can always go back to them. Insurance rates are based on the make/model/year of a vehicle and how good or bad your driving record is. A lot of insurance companies will raise your rates even if you have a perfect driving record and never made any claims. Their excuse for increasing rates is because they loosing money because of fraud , so they need to raise your rates.

mprelaw

The only worse forum for that is A&S.

mprelaw

if you own a home, or have any other substantial assets like retirement or investment accounts/pensions, carrying the statutory minimums is being penny wise and pound foolish.

xuwol7

My Ex-Wife took care of that as she got EVERYTHING, so I am starting over from scratch with nothing.
No pension or retirement, not many companies offer these anymore.
When I had the nice house, German cars etc. I always carried full coverage.
Good point though mprelaw for those that have substantial assets etc.

At least I have my health, freedom, sanity and my bikes...
(at least some of my sanity...lol).

kjay

In Ohio we have a law stating if you have a drivers licence you must carry auto insurance. Crazy I know. They figure if you have a licence you will borrow a car, or will be driving somthing at one point. I guess it's true, we have pretty harsh winters here, and bus routes are inefficiant in most cases.

As far as our auto insurance, it's pretty easy to get, but we have to pay a deposit or a premiem at first if we don't already have insurance from another company.

My opinion.. Insurance companies are a racket and they got us by the balls! They are too big and need to be put in check. Sorry for the rant.

Sixty Fiver

I was uninsured for almost 5 years... when I started driving again I just made the cut off and had I waited longer my insurance rates would have been much higher despite having a perfect driving record from the time I got my license 30 plus years ago.

The agent was quite impressed by that and with the best possible rating my insurance rate is pretty low.