Kantanka - Ghanaian built automobile

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Many people are not driving as much as they used to because of the stay at home order and many of them are choosing to cancel their car insurance to save money. Insurance companies are saying that this is not a good idea.


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According to Nicole Peck from, that is not the way to go and could cost you even more in the long run. Here’s a list of why you shouldn’t cancel your coverage:

  • Do not let your car insurance lapse, even for a day. When you do re-purchase it, your rates will be 7-12% higher.
  • If you are not driving, or are driving less, and want to save money, consider lowering your limits to the state minimum. This keeps you protected from liability, but does not protect your vehicle from things like hail damage or damage to your own car if an accident is your fault.
  • Consider exploring pay-per-mileage insurance options. There are insurance companies that do this exclusively (e.g. Metromile), or national companies that offer it as an option. You are only charged for the miles you drive. Remember: you can switch insurance policies any time.
  • Alert your insurance company that you’re driving fewer miles. You could see a minimum 6% discount.

Happy Driving! For more details, click here.

Warning to Drivers: Do NOT Drop Your Car Insurance!  was originally published on