Last updated: June 3, 2026

Do You Need Insurance on a Car That Doesn’t Run?

Q: What type of insurance do you need for a car in storage or that I'm not driving?

For a car in storage or one you&#8217;re not driving, comprehensive-only coverage with minimum liability limits is often the best option. It protects against theft, vandalism, fire, and weather-related damage like hail or flooding at a fraction of the cost of full coverage, while also preventing a lapse in your insurance history. Note that if your car has an outstanding loan, your lender will likely require you to maintain both comprehensive and collision coverage.

Canceling your car insurance is possible if your car is broken down, but inform the DMV first to avoid penalties and consider a non-owner policy to avoid a lapse in coverage.

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Maya Afilalo holds over 10 years of professional experience in writing, communications, and research, which she leverages to provide accurate and reliable information to empower consumers. In addition to overseeing content production, Maya has herself written many articles on auto insurance costs, company comparisons, state laws and requirements, and other topics. She is committed to helping consumers navigate the complex world of car insurance with clarity and confidence. Maya holds a bachelor’s degree from the University of Pennsylvania and a master’s from North Carolina State University.

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Vehicle repairs are expensive and, if your car is broken down, you may be wondering whether you can save money by canceling your insurance policy. The answer is technically yes, although it’s important to cancel your vehicle registration or file an affidavit that you’re not operating the vehicle with your DMV first. Additionally, there are reasons to maintain coverage, even while you’re not driving your broken-down car.

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Do You Need Insurance on a Car That Doesn’t Run?

If you are not driving your vehicle — because it’s broken down, in storage or for another reason — you do not need insurance. However, you should inform your state’s Department of Motor Vehicles (DMV) before canceling your policy.¹

Here’s how you can cancel insurance legally on a car that doesn’t run:

Contact your DMV. Contact your local DMV or relevant authority to cancel your vehicle registration or file an affidavit of non-operation. Some states require returning license plates while others may have online or in-person options to officially unregister the car. You cannot drive the car at all during this time.
Inform your insurance company. Once you’ve filed necessary paperwork with your DMV, notify your insurance provider. Provide proof of registration cancellation and confirm the date for your policy’s cancellation. Ask whether any unused premiums are owed to you.
Store documentation. Keep a record of all cancellation and/or affidavit documents for future reference.

If you fix your car (or buy another one), you will need to reregister and reinsure your car to drive legally. However, you may pay higher insurance premiums due to your lapse in coverage. Companies see any lapse in insurance coverage — even if you weren’t driving — as a high-risk factor. That’s one reason to maintain coverage, even on a broken-down car.

Reasons to Insure a Broken-Down Car

Prevent a lapse in coverage: Lapses in car insurance coverage could lead to higher rates later on, so it’s wise to keep some level of coverage for the long term.
Protect against damages: Although you’re not at risk of a car accident, you may still want to protect against theft, auto vandalism or a weather-related event like hail or flooding. Comprehensive coverage would reimburse damage to your vehicle from these events.
Keep loyalty discounts: Many companies offer discounts for longtime customers or customers who have maintained coverage (even with other insurers) for a certain number of months or years. If you cancel your coverage, you’ll lose out on these discounts for future vehicle policies.
Required by loan/lease company: If your broken-down car is a loaned or leased vehicle, the company may require you to have comprehensive and collision coverage.

How to Lower Insurance Rates for a Broken-Down Car

If your car breaks down, contact your insurance company and explain the situation. Ask about the following ways to lower rates for a broken-down car:

Drop to comprehensive-only or liability-only coverage: For cars that are nonoperational or in storage, some companies offer policies with only comprehensive coverage. Ask your insurer whether this is possible (note: some companies only offer this option to active-duty military).

You can also save by dropping to a liability-only policy with state minimum limits. However, if your car is not paid off, your lender may require you to hold collision and comprehensive coverage. In this case, contact your lender and ask if they have any provisions or exceptions for broken-down or stored vehicles.

Look into pay-per-mile insurance: Typically, pay-per-mile insurance charges a low base rate, plus a per-mile rate. This can save you significantly if you’re not driving while maintaining coverage. Nationwide, Allstate and Metromile are examples of companies that offer pay-per-mile insurance. This is a good option for individuals who haven’t paid off their vehicles and must maintain full coverage.
Shop around: If your insurer is unable to help you lower your rates, compare quotes from different companies. Be sure to mention the car’s status to see if you qualify for special discounts or reduced premiums.

Alternatives to Insuring a Broken Down Car

If you decide to cancel your registration and insurance on your broken-down car, the following can help you maintain coverage and avoid rate hikes down the line:

Buy a nonowner policy: A nonowner car insurance policy provides liability coverage when you’re driving a vehicle you don’t own and prevents gaps in your insurance history. Nonowner policies are usually cheaper than regular policies and ensure you’re covered if you borrow or rent a car.
Get added as a named driver: If you’re borrowing a friend’s or family member’s car, ask them to add you as a named nonowner driver to their policy. Offer to pay for the difference in premiums, which is usually minimal. This allows you to maintain insurance coverage without owning a car.

Should You Suspend Coverage for a Period of Time?

Some insurance companies allow you to suspend your car insurance temporarily, for example until you get your car fixed or you buy a new one. However, you will still face the same issue around a lapse in coverage. Even if you suspend coverage, the gap in your insurance history could lead to higher premiums when you reinstate it. Additionally, if your car is financed, your lender may not allow you to suspend coverage.

Other Circumstances: Do You Need Insurance?

Maybe your car isn’t broken down but is in storage, is never driven, and/or has an outstanding loan. What do you do regarding your insurance policy in those situations?

Car is in storage: Similar to a broken-down car, even a parked car in storage should have some level of insurance, especially comprehensive coverage.
Car is never driven: The same principles apply, especially if your car is parked outside, where it could be damaged by things other than cars, such as hail.
Car has an outstanding loan: Unfortunately, you’ll still have to pay the rest of your auto loan on your car, even if you never drive it. Whether or not you choose to refinance your auto loan or file for bankruptcy in worst-case scenarios, you should still have comprehensive coverage on your car at the very least. And if you drive your car, you must meet your state’s minimum requirements.

If your vehicle was deemed a total loss after an accident, you may be able to salvage and insure your vehicle.

Recap

It’s wise to maintain some form of insurance coverage, even if your car is broken down. You can save by dropping unnecessary coverages or switching to pay-per-mile insurance. If you decide to cancel your policy, make sure to contact your DMV to cancel your vehicle registration or file an affidavit of non-operation first to avoid penalties. Consider a nonowner policy or getting added as a named driver on another policy to maintain coverage. Maintaining a cheap auto insurance policy will save you money in the long run.

Frequently Asked Questions

Do you legally need insurance on a non-running car?

It depends on your situation. If the car is still registered, most states require you to maintain at least minimum insurance coverage. However, if you cancel your vehicle registration or file an affidavit of non-operation with your DMV, you can typically cancel your insurance without penalty — though there are still good reasons to maintain some level of coverage even then.

Can you cancel car insurance if your car is not drivable?

Yes, but you should contact your DMV first to cancel your vehicle registration or file an affidavit of non-operation before canceling your policy. Once that paperwork is filed, notify your insurer, confirm the cancellation date, and ask whether any unused premiums are owed to you. Keep records of all cancellation documents for future reference.

What type of insurance do you need for a car in storage or that I'm not driving?

For a car in storage or one you’re not driving, comprehensive-only coverage with minimum liability limits is often the best option. It protects against theft, vandalism, fire, and weather-related damage like hail or flooding at a fraction of the cost of full coverage, while also preventing a lapse in your insurance history. Note that if your car has an outstanding loan, your lender will likely require you to maintain both comprehensive and collision coverage.

Does a non-running car still need to be registered and insured?

Not necessarily, but you must take the proper legal steps before dropping either. You cannot simply stop paying for insurance on a registered vehicle — you need to cancel your registration or file an affidavit of non-operation with your DMV first. Skipping this step could result in legal penalties, and you won’t be able to drive the car at all during this period.

What happens if I let my car insurance lapse on a non-running vehicle?

If you haven’t canceled your registration and you let your insurance lapse — even on a non-running car — you may still receive a violation for not holding required minimum coverage, and have to pay fines. A lapse in coverage can also lead to higher premiums when you seek insurance again. To avoid these consequences, consider keeping a minimal policy — such as comprehensive-only or a nonowner policy — rather than canceling outright.

How can I lower my insurance costs on a car I'm not driving?

Contact your insurer and ask about dropping to comprehensive-only coverage, which some companies offer for nonoperational or stored vehicles. If you still have to carry liability coverage, drop to the state-minimum required limits. You can also look into pay-per-mile insurance, which charges a low base rate plus a small fee per mile driven — making it a cost-effective option when the car sits unused. If your insurer can’t help, shop around and mention the car’s non-operational status to see if you qualify for reduced premiums.

What are my options if I decide to cancel insurance on my non-running car entirely?

If you cancel your policy, consider a nonowner car insurance policy, which provides liability coverage when driving a vehicle you don’t own and prevents a gap in your insurance history. Alternatively, if you’re borrowing a friend’s or family member’s car, ask to be added as a named driver on their policy — the premium difference is usually minimal. Either option helps you maintain continuous coverage and avoid the higher rates that come with a lapse.