Can I leave my Auto Lease uninsured if I wont be driving it?
I have an auto lease that im stuck with for 32 more months. I just moved to the city and I don’t need a car anymore, so it’s silly to pay my crazy 400 dollar insurance charge a month when I won;t even be driving it. Can I cancel my auto insurance and just keep making the lease payments while leaving car uninsured in driveway?!?!
Comments (5)
I don’t think that’s a good idea because having no insurance on your vehicle may cause you to have an insurance block and that will prevent you from renewing your licensce should you need to drive this car. Also it will prevent you come from getting a new registration.
Not Advisable. If you read through your lease agreement, you will probably find that the leasing company requires you to keep the vehicle insured for the term of the lease. If you cancel your insurance, you will be liable to pay the leasing company for the cost of the car if it is stolen or damaged in any way. Under the circumstances, you might be better off turning the car back in to the leasing company and paying the early termination fee, if the fee is substantially less than the cost of keeping the car and insuring it for the duration of the lease. Check with your leasing company on this.
No you cant, if you do they will report it to you lease company which will add insurance and up your lease payment until you get your own Insurance.
What if it gets stolen? What if you have a house fire and the vehicle is burned to the ground in the process? I’ll answer that: you will have to pay for it out of pocket. You will be far better off to borrow the difference of what the early payout is and the vehicle value and just SELL the damn thing. At least you will be better off with a six thousand dollar debt with no insurance payment vs a three year lease and $400 a month….damn!
I agree that you may be better of getting rid of the vehicle entirely if you seriously don’t intend to drive it any longer. What is the point of keeping it and insuring it?
However, if you do want to keep it, you will have to have some kind of insurance in order to comply with your lease agreement. You mention the driveway. I doubt you will get any special reductions by keeping it parked in the driveway, but you may be able to organize with your insurance company to keep the car stored in a secure location and reduce your premiums while still having it covered.
This is something that you will have to speak to your insurer about directly. If you go to them with the right attitude and ask for help in your situation, you may get lucky. Sometimes agents, etc. will bend over backwards trying to help you because they are nice people or because they want to build a long term business relationship with you. It is worth a try.
Good luck.