Every vehicle on the road needs insurance coverage. You may be able to drop insurance on a car you do not drive, depending on the situation and state rules. Learn more about common scenarios and how to make sure you have the right coverage for all your vehicles by reviewing Insurance and related financial guides.
1. Someone else will use your car while you're out of the country
Even if you work or travel outside the U.S. for an extended period, you can remain the registered owner and allow another person to drive your car. Contact your insurance agent to add that driver to your policy or to add the car to the other driver’s policy.
2. You keep a car but are not a licensed driver
There are several reasons you may not drive, and you can still own a vehicle in your name while being excluded as a driver on the policy. Tell your insurance agent why you are not licensed and provide details about the licensed driver who will use the car.
Reasons you might not drive
- You never got your license
- You are disabled
- You gave up driving because of age
- You lost your license due to reckless driving or a DUI
In most cases, the licensed driver must live in your household. For guidance about how unused or non-driving situations affect coverage, see Insurance overview: unused cars, HSAs, vacation rentals, motorhomes, workers' comp fraud.
3. The vehicle will not be driven for months at a time
You might buy a classic car and store it while you restore it, or hold a vehicle for a teen who is not yet old enough to drive. These circumstances can sometimes justify reducing or dropping certain coverages.
Keep in mind that vehicles with liens typically must remain insured. Some states also require liability coverage on all registered vehicles, even if they are not driven or are kept off public roads. For general policy information, consider reviewing Auto Insurance.
When you do not drive a vehicle you own, you may be able to drop some auto insurance coverage, but rules vary by state and by lender. Talk through your situation with your insurer or discuss with an agent to confirm what is allowed and to keep adequate protection in place.
Frequently Asked Questions
Can I remove a driver from my policy if they live elsewhere?
Possibly, but insurers may consider the vehicle’s primary garaging address and who regularly uses it; check with your insurer.
If I store a car in a garage, do I still need liability coverage?
Some states require liability on all registered vehicles, but if a car is non-operable and not on public land you may qualify for different options; confirm with your insurer.
Can a non-licensed owner be listed on an insurance policy?
Yes. Owners who do not drive can be excluded as drivers while the policy covers the licensed operator, but the insurer will want details about who will drive the car.
What happens if I drop coverage while a car has a loan?
Lenders generally require continuous coverage, so you typically cannot drop required insurance on a financed vehicle without lender approval.