Your car has been at the repair shop for a week, and the mechanic says it may be another two weeks before the right part arrives.
Meanwhile, your insurance payment is still due.
If you’re wondering, “Do I need insurance while my car is in the shop?” the answer is usually yes. If the repair is temporary and you plan to drive the car again, continue paying for insurance and keep the policy active.
Canceling during a short repair could create a lapse, violate a lender requirement, or leave you without active insurance when the mechanic calls to say the car is ready.
The answer may be different if the car will remain inoperable for several months, be sold, or never return to the road. In that situation, contact your insurance agency before changing the policy.
For a Normal Repair, Keep the Policy Active
A few days or weeks at the mechanic usually is not a reason to cancel car insurance.
This applies to common repairs such as:
- Engine or transmission work
- Brake repairs
- Electrical problems
- New tires
- Manufacturer recalls
- Delays caused by backordered parts
You still own the vehicle and expect to drive it again. Keeping the policy active means you will not need to find new coverage before leaving the repair shop.
It is also important to understand that maintaining insurance does not mean the policy will pay the mechanic. Car insurance generally does not cover routine maintenance, ordinary wear, or a mechanical breakdown by itself.
If the Repair Follows an Accident, Talk to the Adjuster
The situation is different when the car is in the shop because of an insurance claim.
The adjuster may still be reviewing an estimate, approving repairs, inspecting damage, or waiting for documents from the shop. Speak with the agent or adjuster before changing the policy while the claim and repairs are still in progress.
If your policy included rental reimbursement, it may help with a temporary rental while the vehicle is being repaired after a covered loss, subject to the policy’s terms and limits.
Rental reimbursement generally does not apply when the car needs ordinary mechanical work. An engine problem or failed transmission does not become an insurance claim simply because the vehicle is being repaired at a shop.
A Financed Car May Have Coverage Requirements
If you are still making payments on the vehicle, review the finance or lease agreement before removing coverage.
A lender may require comprehensive and collision coverage even when the car is temporarily inoperable. Those requirements do not necessarily stop because the car is waiting on repairs or a replacement part.
Before making changes, ask the lender:
- Which coverages must remain on the vehicle?
- Are there restrictions on the deductibles?
- Do the requirements change while the vehicle is being repaired?
Do not assume that being unable to drive the car temporarily removes the lender’s requirements.
What if the Car Will Be Inoperable for Months?
A short repair is different from a vehicle that may remain unusable indefinitely.
Perhaps the needed part is unavailable. Maybe you cannot afford the repair yet, or the mechanic cannot give you a completion date.
Before changing the policy, gather a few details:
- Is the vehicle financed?
- Does it remain registered?
- Where will it be stored?
- Could anyone drive it?
- Do you plan to repair, sell, or replace it?
Share that information with the insurance agency. Available options depend on the vehicle, carrier, lender, registration, storage, and how long the car will remain off the road.
Do not assume the policy can simply be paused. Canceling could create a lapse that affects your insurance options or price when you need coverage again. The Oklahoma Insurance Department advises drivers to consider maintaining insurance while a vehicle is inoperable because a lapse may lead to higher premiums when coverage is obtained again.
What if the Repair Costs More Than the Car Is Worth?
Sometimes the repair estimate changes your plans completely.
You may decide to:
- Sell the car as-is
- Trade it in
- Scrap or donate it
- Replace it with another vehicle
- Delay the repair
Do not cancel the insurance based only on the repair estimate. First, determine whether you still own the vehicle, whether a lender is involved, and what needs to happen with the registration.
If you plan to buy another car soon, ask the agency how to handle the transition. Updating an active policy when you obtain the replacement vehicle may be simpler than canceling coverage and starting over later.
Before Driving Away From the Shop
When the mechanic says your car is ready, confirm that your insurance is ready too.
Before driving away:
- Make sure the policy is active.
- Confirm that the latest payment was processed.
- Have current proof of insurance.
- Check that the vehicle information is correct.
- Confirm that any lender-required coverage remains in place.
If the policy lapsed during the repair, do not assume that submitting a payment restored coverage immediately. Ask the insurance company to confirm the effective date before you drive.
Keep Insurance in Place During a Temporary Repair
If your car is receiving a normal repair and will return to the road, continue paying for insurance. A temporary stay at the mechanic usually does not change your ownership, registration, or lender requirements.
If the car may remain inoperable, be sold, or be replaced, speak with the insurance agency before making changes.
Cheapest Auto Insurance can review the carrier options available through our agency and look for the lowest rate we’re able to offer for the coverage you request. If your repair bill and insurance payment are competing for the same money, contact us while the policy is still active.
You can start a quote online or call us at (800) 988-3794.
Frequently Asked Questions
Should I Cancel Car Insurance if My Car Will Be in the Shop for a Month?
A month-long repair is usually temporary. If you plan to drive the car again, keeping the policy active can help you avoid a lapse. Check with the lender and insurance agency before making changes.
Does Car Insurance Pay for Engine or Transmission Repairs?
Car insurance generally does not cover an engine or transmission failure caused by ordinary wear or a mechanical breakdown. Coverage may apply when the damage results from a covered event, depending on the policy.
Do I Need Insurance on a Car That Cannot Be Driven?
Possibly. Financing, registration, storage, ownership, and the length of time the car will remain inoperable can all affect the answer. Contact your insurance agency before canceling the policy.