Best Car Insurance For Young Drivers

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Your Questions About Short Term Car Insurance For Under 21

May 18, 2012

Lisa asks…

Cost of Cancelling multiple 6-month car insurance policies in US?

I am 18 years old, male, clean driving record, good student, going to college. I will only be going home for occasional weekends, and vacations, and I would like to be insured so I can drive my car (saturn 2000 sl) around. I don’t want to pay for the high cost of permanent car insurance, but want to be insured when I need it.

I looked up ways to get temporary (short term) car insurance and I basically found that if you are under 21, you cannot pay daily or weekly. I also found that US insurance companies generally offer policies that are at least 6 months. Since I want tthen you can only get 6month or 1 year policies.

They suggest getting the 6 month policy and paying monthly, and then simply canceling the policy once I am done with it. Therefore if I did this, I would be buying and canceling many policies every year. I would maybe do this a few weekends every semester and also winter, spring, and summer break.

So basically I want to save money by foregoing yearly car insurance, but instead would like to do what I stated above. The big question is: IS IT WORTH IT? Ordering, and then cancelling up to six to eight 6-month policies, each paying for the first monthly payment.

Note: I currently have MetLife.


Administrator answers:

Never do this, insurance companies share general information with each other, basically who is insured, the dates of the policy and the vehicle. So if companies see you are taking a policy out for two months, canceling it, then not getting insurance for a couple of months, they will charge you extra as they will consider you driving the vehicle uninsured. Companies generally consider a vehicle being driven uninsured if it has gone more than 30 days without insurance and you cannot provide proof the vehicle was not in running condition. What I recommend is just getting a 6 month policy, and when you do not need insurance on the vehicle, have the company put it in storage status. This basically means there is just comprehensive coverage on the vehicle and it is not legal drive with that. By putting it in storage, you’re not canceling multiple policies and hurting yourself, its very cheap for storage coverage, and whenever you do need to drive the vehicle, just call up and have them put normal coverage back onto the vehicle. It’s basically what a majority of people do with their motorcycles during the winter.

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