DMV's Regulation on Insurance and Registration Suspension/cancelation

[gr8ideaman]

Hi all,

I have a financed Honda vehicle which is currently registered and insured (in California). But, I am going to be out of the states for over 2.5 months. My question is, what are my best options to save on the car's registration and insurance? I mean can I cancel my insurance and just leave the car parked in my private parking for the above period? Does DMV allow me to do so?

I called Honda Finance and they said they have no problem with canceling my insurance for that period but I should register it as PNO. The problem is there is only yearly PNO registration on DMV, or at least I couldn't find any section on monthly PNO!

I called my insurance company, and they told me that fortunately my annual contract would be over exactly on the day I am leaving the country. So, I have the option to cancel my insurance and get a new one when I come back. But, the rep said that I'd better to keep the insurance for some probable incidents may happen to the car while parked. She said I could eliminate some unnecessary parts of the policy like UNINSURED MOTORIST, and else, and only keep the basic coverage, which is of course still a considerable amount for 2.5 months.

Anyway, any input that can make my life a little easier for me would be much appreciated.

Sorry for the long story!

 

[djs]

Typically, the finance company will not allow you to drop coverage for comp and collision while they have an active lien. Doing so will cause them to force place insurance, which will cost you more than just keeping it in place.

You can reduce coverages to save some money, absolutely. Exactly what you can do will depend on what you currently have and the carrier you are with. Most have a 'storage' option which may work. Finance company will probably be okay with this if you let them know the car is in storage. If your car is in private parking, not a private garage, I would leave it insured.

Registration is on an annual basis, nothing you can do on that.

For 2.5 months, this almost isn't worth the hassle of making a lot of changes.

Dan