According to The Balance, it's never a good idea to let your car insurance expire. The biggest risk is not having coverage if you cause an accident. This means you'll have to pay out of pocket for property damage and medical expenses. Another risk you run when you let your coverage expire is an increase in your rates.
Members of the military have unique car insurance needs that apply to specific circumstances. Regardless of where you live or are stationed, military auto insurance laws must be met and meet or exceed the minimum requirements of the state in which you temporarily or permanently reside. Active military members and their families face a number of considerations when choosing auto insurance coverage. Not only do they frequently move from one state to another, but they occasionally travel abroad for a year or three or are deployed in combat zones.
Your new insurer may also have to file an SR-22, a form that some states require to prove that you have insurance (some states require a similar form known as FR-4). You can choose to eliminate optional coverages (such as comprehensive auto insurance coverage and car collision coverage), but if you leased or financed your vehicle, your lender will likely continue to require that you have these specific coverages to protect your investment. If you're out of state when you have an accident, your car insurance should continue to work just like if you had an accident in your home state. However, keep in mind that car insurance can help you pay for the costs associated with a car accident, if you drive at all.
Because it's a risk, suspending car insurance may not be worth the money saved by not paying premiums while you're away. If you want to move more vehicles to your new destination, you'll have to take care of transporting them and take out your own insurance. There are a variety of resources that can help you find relevant information about car insurance and other topics relevant to members of the military, veterans and their families. If you are involved in a car accident without car insurance, you may be responsible for paying for damages and medical bills out of pocket.
While you can save by suspending or canceling your car insurance, there won't be coverage if something happens to the car while you're gone. If you're driving your car to another state for a temporary service trip and don't change your permanent destination or registered address, your military auto insurance doesn't usually require changes. Before your license can be reinstated, you'll often have to complete certain steps, such as paying outstanding fines, completing a defensive driving course, and presenting proof of car insurance. However, there are many different factors involved in setting car insurance prices, and different companies assess and assess risk in different ways.
All insurance products are governed by the terms of the applicable insurance policy, and all related decisions (such as coverage approval, premiums, fees and charges) and policy obligations are the sole responsibility of the insurance insurer. You can rely on your regular insurance company for coverage, but getting coverage through your shipper or using a marine insurance policy can help you avoid having to pay a deductible if your vehicle is damaged or destroyed. Your auto insurance company may even have a short grace period in which your premiums won't increase if the coverage expires.