Can I Remove a Vehicle From My Insurance Policy?

Having the right auto insurance coverage is crucial for protecting yourself financially in the event of an accident or other incident involving your vehicle However, your insurance needs can change over time as your circumstances evolve. You may go from insuring multiple vehicles to just one, or decide a car is no longer worth carrying collision and comprehensive coverage on

So what do you do if you need or want to remove a car from your insurance policy? Thankfully, the process is usually quick and straightforward with most major insurance providers. Here’s what you need to know about taking a vehicle off your policy:

Why Would You Remove a Vehicle?

There are a few common reasons you may need to remove a car from your insurance:

• You sold the vehicle or gave it away. Once you no longer own the car, you obviously don’t need to insure it anymore.

• The car was totaled in an accident. If your vehicle is totaled or damaged beyond repair in a crash, your insurer will declare it a total loss and pay you its actual cash value. You can then remove the totaled car from coverage

• You have an older car you’ve stopped driving. If you have an unused vehicle that’s getting up in years, you may decide it’s no longer worth paying for comprehensive and collision coverage. Removing those coverages can save you money.

• You need to reduce your premium. Eliminating a vehicle from your policy is one way to potentially lower your overall insurance costs. This is especially true if the car is driven by a high-risk driver like a teen.

• You added a car temporarily. Sometimes you may need to add a rental car or other temporary vehicle. Once you no longer need that short-term coverage, removing the car can help avoid unnecessary premium charges.

No matter the reason, taking a car off your policy is usually a quick and easy process these days.

How to Remove a Vehicle from Your Insurance Policy

Many major insurance providers now allow policyholders to log in and manage their auto insurance digitally. This online account management makes it simple to remove a vehicle when needed.

Here are some typical steps to follow:

• Log in to your account. Access your insurance account online or through the provider’s mobile app. You’ll need your policy number and other credentials to log in.

• Find your vehicle list. Navigate to the section of your account that shows covered vehicles. This may be under a tab called “My Vehicles,” “Covered Cars,” or something similar.

• Select the vehicle to remove. Find the specific car you want taken off the policy and select the option to remove it. There may be a button or link labeled “Remove Vehicle” or “Delete.”

• Confirm the removal. You’ll get a message verifying that you want to delete the car from coverage. Confirm that you do wish to remove it.

• Review changes. You’ll receive a notification that the vehicle has been removed. Review your new policy documents and Declarations Page for confirmation. Your premium may be adjusted lower.

• Return license plates. Don’t forget to remove the license plates from the deleted vehicle and return them to the DMV as required in your state.

The entire process often only takes a few minutes to complete online. Some insurers may require you to call your agent or customer service to remove a vehicle, but many allow online account management.

What Happens When a Vehicle Is Removed?

So what exactly happens when you take a car off your policy? Here are some key points:

• No more coverage. The removed vehicle will no longer have any insurance coverage at all. Make sure to terminate coverage only after the car has been sold, totaled or stopped being driven.

• Premium reduction. Your overall insurance premium may decrease, since you have one less car to cover. The amount depends on the specific vehicle.

• Policy reissued. You’ll receive updated policy documents reflecting the vehicle removal. Check that these are correct.

• Possible mid-term cancellation. Removing a vehicle mid-policy term may lead to cancellation fees in some states. Your insurer can explain any cancellation rules.

• Refund or credit. If you already paid the full policy term premium, you may get a prorated refund. This refund might be issued by check or applied as a credit to your account.

As long as you timely notify your insurer about the vehicle termination, the removal process is straightforward for most major insurance providers.

What If You Have an Existing Claim on the Vehicle?

If you need to remove a vehicle that has an open claim, make sure to discuss how this will impact the claim process. The claim may need to remain open until final resolution and payment by the insurer.

Some other situations that require extra coordination include:

• Leased vehicle – You’ll need to notify the leasing company and possibly have them contact the insurer to remove the vehicle.

• Financed vehicle – Your lienholder may need to agree to the removal and be named on any refund check.

• Recent accident – An open claim may prevent immediate removal if the total loss, repairs or liability has not yet been settled.

As long as you talk to your insurance company about existing claims, they can guide you through the proper steps to avoid problems. Don’t just remove a vehicle online without checking in about an open claim first.

Are There Any Drawbacks to Removing a Car?

While removing an unneeded vehicle can save you money on premiums, there are a couple potential drawbacks to note:

• Higher per-vehicle cost – With fewer cars on your policy, the per-vehicle rate may increase. Make sure total savings outweigh this impact.

• Gap in coverage – The removed vehicle will be uninsured until added to a new policy. Avoid gaps by timing the termination right.

• Cancellation fees – Some states impose fees for mid-term cancellations. Check if removing the car qualifies as a cancellation.

• Eligibility issues – Having insufficient vehicles may affect multi-policy or group discounts.

For the most part, you should see net savings by trimming unused vehicles from your policy. But do pay attention to any downsides specific to your insurer and location.

Tips for Removing a Vehicle Pain-Free

Follow these tips for the fastest and smoothest process to take a car off your insurance:

• Remove it as soon as you sell or stop driving the vehicle to avoid paying for unnecessary coverage.

• Use online account management if available through your insurer.

• Double check the vehicle details to avoid removing the wrong car accidentally.

• Take prompt action if you receive cancellation notices or bills for the terminated vehicle.

• Return the license plates to avoid registration suspension or fees from the DMV.

• Consider adding another vehicle first if you want to maintain multi-auto discounts.

• Discuss required steps for a leased, financed or damaged vehicle before removing.

With today’s digital policy management, removing unnecessary vehicles is usually quick and easy. Just take care to time it right and take any follow-up steps needed to avoid coverage gaps or added fees.

Can I Re-Add a Removed Vehicle Later On?

Yes, you can typically add back any vehicle that you previously removed from a policy, with no penalty or lapse in coverage. As long as you maintain continuous insurance on your main vehicle(s), deleting and re-adding cars as needed usually isn’t an issue.

Steps to re-add a vehicle:

• Log into your insurer’s website or mobile app.
• Go to the page to manage covered vehicles.
• Select the option to add a car.
• Enter the VIN and details for the vehicle you want to re-add.
• Confirm the coverage options you want.
• Review the updated policy documents reflecting the added car.

The insurer will pick your policy back up as if the car was never removed. Rates for re-added vehicles are usually the same as when you first insured it.

Just be aware of a couple potential pitfalls:

• If there was a lapse in overall coverage, you may pay higher rates on all vehicles.

• Make sure the car wasn’t added as a replacement vehicle, which would require a deletion first.

Check with your insurance company if you have any concerns about re-adding a previously removed vehicle. But in most cases, it’s a smooth process to pick back up where you left off.

Key Takeaways on Removing a Car from Insurance

Removing an unneeded vehicle from insurance is an easy way to eliminate unnecessary costs from your policy premium. Just keep these key points in mind:

• Log into your account online to conveniently delete the vehicle from coverage.

• Make sure to maintain continuous coverage on your driver(s) and all remaining cars.

• Be aware of any cancellation fees your state may impose for mid-term removals.

• Review the adjusted premium and policy documents to verify the change.

• Consider re-adding the same vehicle later on without penalty, if needed.

With modern online policy management, amending your coverage by removing a vehicle is a quick and straightforward process with most insurers. Just take any appropriate follow-up steps to avoid gaps in insurance protection.