If you’re not driving much right now because you’re working from home or have had a loss of income, you may think it’s time to cancel your car insurance. The average cost of car insurance is $1,548 per year. That's $774 per six-month policy or $129 per month. If you were to cancel, that’s a lot of money back in your pocket! But, not so fast. Canceling your car insurance may not be the best move depending on your situation.
If you start driving again soon, a lapse in coverage could mean that your insurance premiums will be higher when you sign up again. We’ve found that the average price difference between an insurance policy for a driver with five consecutive years of coverage history and a driver with no recent auto insurance record is $218 per year.
If you’re looking to save money on insurance, you have a few other options that won’t result in a costly lapse. Just answer a few simple questions below to figure out what’s right for you.