My Car Broke Down, Do I still Need Car Insurance?

Working on a Broken Down Car
Getty Images/Daly and Newton

Are you trying to figure out what to do with your broken down car? Lots of people are having a tough time making ends meet. A major car repair can cripple some families, forcing harsh decisions on what cuts to make. Car insurance is expensive, leaving many people wondering if they need car insurance while a car is broken down.

Circumstances can vary greatly, and so can the answer to the question. If multiple cars are insured and one breaks down, the answer is no, you do not necessarily need to insure the car needing repairs.

Sometimes, if you have a loan on the vehicle your lender may require full coverage no matter what the circumstances are. Lenders are able to obtain third party car insurance on the vehicle and send you the bill. It is much cheaper to maintain your own policy.

Comprehensive or storage insurance may be a possibility if your car needs repairs, so long as you have an alternate vehicle being driven on the car insurance policy. Comprehensive coverage will continue to protect the vehicle against physical damage while it is not in use. Fire, theft, vandalism, and storm damage would all be covered. It is important to remember, having a vehicle with comprehensive only coverage means it is not legal to drive on the road. Liability coverage is required to drive it.

Now, if your only vehicle is down and out, you will need to maintain car insurance in one form or another. Decide how to stay insured based on how long it will be to repair or replace your car.

Ways to Reduce Car Insurance Costs

  • Maintain car insurance on the vehicle needing repaired
  • Get added as a driver to a relative or friend's car insurance while your's is cancelled
  • Purchase a Named Non-Owner car insurance policy

Cancelling your car insurance can be very costly. A good rule of thumb is to never let your car insurance lapse.

It may seem useless to pay car insurance on a vehicle you cannot drive; however, it is the cheaper route to go since you will be considered high risk the next time you need insurance.

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