If you've spent the last few days or weeks becoming increasingly frustrated at dealing with a vehicle that won't run or drive, you may be wondering whether it's time to remove or suspend your insurance coverage on this vehicle until you can get it back into service again. 

Un-insuring a vehicle can make financial sense in some situations, especially if you're paying high insurance rates and expect it to be weeks or even months before your vehicle makes it back onto the road. However, it's not the ideal choice for all situations, and you'll want to evaluate various angles carefully before making your decision. Read on for some of the factors you'll want to consider when deciding whether to maintain or remove insurance coverage on a vehicle that's no longer operational. 

Does The Loan or Lien Require Coverage?

If you still make regular payments on an auto loan, you may be required to maintain both collision and comprehensive coverage by your lender. Allowing this coverage to lapse or revoking coverage while the loan is still in effect could be considered a breach of contract that will require you to pay off the loan in a single lump sum.

This coverage requirement is usually written into the loan contract you signed with the bank or lender that issued your auto loan, and may also provide specific minimum coverage and maximum deductible amounts. This requirement is designed to minimize the lender's risk that you'll be involved in an accident and neglect to repair your vehicle (either because you don't have coverage or because you can't afford the deductible), decreasing the value of the asset secured by the lien. 

Before you remove your insurance coverage, you'll want to review any loan documentation to ensure you're permitted to make the modifications you're pursuing. Meanwhile, if you own your vehicle free and clear, this shouldn't be a factor that impacts your decision. 

Can You Cover a Comprehensive Claim on Your Own?

Comprehensive insurance coverage can help defray the costs of repairs that aren't due to a collision, but also aren't explicitly your fault. Everything from an accidental collision with a deer crossing the road to a vehicle crushed by a falling tree can be covered under a comprehensive policy for only the cost of your deductible. For many vehicle owners, comprehensive insurance can be the only saving grace when expensive damage (that can't be attributed to you or another driver) takes place. 

This means that just because your vehicle isn't on the road doesn't mean you couldn't generate an insurance claim. If you're prepared to pay any potential repair costs that could be generated by hail damage, falling trees or limbs, or even vandalism or theft, you may opt to remove your comprehensive insurance coverage. However, if any of these situations are a possibility, maintaining comprehensive coverage while your vehicle is stationary could be a good investment and might prevent you from suffering thousands (or even tens of thousands) of dollars in financial losses. 

Is It Financially Worth It?

Some vehicles (and drivers) are so cheap to insure, canceling and then reinstating insurance coverage may be more trouble than it's worth. If the cost of your policy is only pennies a day, it's unlikely the few weeks (or months) you'll spend uninsured will save you enough money to justify canceling and renewing a policy.

On the other hand, vehicles and drivers that are disproportionately expensive to insure may justify suspension of insurance coverage during any time the vehicle isn't actively being driven or maintained. 

If you're still unsure whether you're making the right decision in keeping (or canceling) your insurance coverage, you'll want to talk to an agent from providers like State Fund Insurance to help walk you through the various possibilities and savings options.