Do I Need to Maintain Auto Insurance on a Broken Down Vehicle?

Last Updated on February 5, 2026

If your car is broken down and can’t be driven, you might be tempted to cancel insurance immediately. But whether you should depends on a few things: your state’s registration rules, whether the car still has plates/active registration, where it’s stored, and whether there’s a loan or lease.

Below is a practical, up-to-date guide to help you decide when it makes sense to keep coverage, when you can reduce it, and when canceling insurance is usually the right move.

• If your broken down car is still registered with active plates, many states expect you to keep insurance in force—even if you aren’t driving it.
• To save money while the vehicle is off the road, ask your insurer about reducing coverage (often to comprehensive-only) instead of paying for “road-ready” coverage.
• Canceling a policy can create an insurance lapse and may trigger registration problems, so it’s best to confirm your DMV rules and insurer options first.
• If you have a loan or lease, your lender may require full coverage until the balance is paid off—regardless of whether the vehicle runs.

Quick Answer: Do I Need Insurance on a Car That Doesn’t Run?

Often, yes—if the vehicle is still registered and has active plates, many states expect it to be insured (even if it isn’t being driven). In states with mandatory auto insurance, you typically need at least the legal minimum insurance level to keep registration valid.

If you’re truly taking the car off the road, the “right” move is usually to handle registration first (for example, returning plates or filing the state’s non-operational paperwork) and then adjust your insurance accordingly. Because the rules vary, it’s smart to confirm your DMV requirements and your insurer’s options before making changes.

When Keeping Insurance on a Broken Down Vehicle Makes Sense

Keeping some insurance is usually a good idea if any of the following are true:

• The car is still registered and you want to avoid registration problems, fines, or reinstatement hassles later.
• You plan to repair it soon and want the easiest path to driving it again.
• It’s parked on the street or in a shared lot where it could be hit, vandalized, or stolen.
• You still have value to protect (even a non-running car can be damaged by weather or theft).

Also, think twice before letting your policy drop abruptly. If you cancel your auto insurance policy without a plan, you may create a lapse that can make future coverage more expensive, and you may have extra DMV steps before you can legally drive again.

When It Does Not Make Sense to Keep Full Coverage

If the vehicle won’t be running for a while, paying for “road-ready” coverage can be unnecessary. It often makes sense to reduce coverage (or potentially cancel it) when:

• You won’t drive the vehicle for months and it’s stored safely.
• You’re planning to sell it, scrap it, or donate it.
• The vehicle’s value is low enough that paying for optional coverages no longer feels worth it.

In many cases, the better solution is to lower coverage while it’s off-road instead of paying for everything you’d carry during daily driving.

Option 1: Switch to Comprehensive-Only Coverage

One of the most common “broken down car” strategies is carrying comprehensive coverage without liability or collision while the vehicle is off the road. This can protect the car from non-driving risks like vandalism, fire, weather damage, and theft.

Comprehensive-only coverage is typically cheaper than full auto insurance, but it’s not automatically available in every situation. Some companies require the vehicle to be stored in a secure location, and some only offer a reduced “storage” setup if the vehicle is in storage for a certain period.

Important: Comprehensive-only coverage does not make it legal to drive the car. To drive on public roads, you generally need at least minimum liability coverage (and possibly more, depending on your state and situation).

Option 2: Drop Collision (and Maybe Comprehensive) If the Risk Is Low

If the car will not be driven and is stored safely, you can often remove optional coverages to reduce cost. For example, you might drop collision insurance since you won’t be driving and (ideally) won’t be in a crash.

And if the car is truly low-value or stored in a very secure place, you may even consider dropping comprehensive as well. Just remember: dropping comprehensive means you’re accepting the risk of theft, vandalism, falling objects, hail, fire, and other non-collision losses.

Option 3: Avoid a Lapse If You’re Keeping Registration Active

If your registration stays active, letting coverage lapse can create headaches. In many states, if you allow your auto insurance to lapse, you can trigger registration issues or penalties—even if the vehicle isn’t currently operable. If you plan to fix the car and put it back on the road, preventing a lapse is often the smoothest (and sometimes cheapest) long-term approach.

What If the Broken Down Vehicle Has a Loan or Lease?

If you have an outstanding car loan (or a lease), you may be required to keep “full coverage” (often meaning comprehensive and collision, plus liability) regardless of whether the car runs. Lenders do this to protect their financial interest because the vehicle can still be stolen, damaged by weather, or hit while parked.

If repairs will take a while, call your lender and your insurer. In some cases, lenders will allow temporary adjustments—but don’t assume. If you reduce coverage below what your contract requires, you could face forced-placed insurance or other consequences.

A Simple Decision Checklist

• Is the car still registered with active plates? If yes, find out what your state requires before canceling.
• Is there a loan or lease? If yes, review the insurance requirements in your contract.
• Where is the car stored? Street parking usually increases the need for comprehensive.
• How soon will it run again? If it’s weeks (not months), keeping coverage may be easiest.
• Is the car worth protecting? Compare the premium cost to the vehicle’s value and theft/weather risk in your area.

FAQs on Insuring a Broken Down Vehicle

Final Word: Do I Need to Maintain Auto Insurance on a Broken Down Vehicle?

There’s no one-size-fits-all answer. If your car is still registered (or you have a loan/lease), you may need to keep coverage in place—at least temporarily. If it’s truly off the road for the long haul, reducing coverage (or handling registration changes and then canceling) can save money.

Your best next step is a quick call with your insurer: explain that the vehicle is not drivable, where it’s stored, and how long it will be off the road. They can tell you whether comprehensive-only or another “storage” setup is available and how to avoid a costly lapse.