Can You Remove a Broken-Down Vehicle from Your Auto Insurance Policy?

Yes, you can remove a non-operational vehicle from your policy — but you should think carefully before doing so. Depending on your situation, it might save you money in the short term but leave you exposed in ways you didn’t expect.

Let’s break it down.

🔧 If the Vehicle Is Completely Undrivable

If your car is truly out of commission — say the engine’s blown, it’s waiting for parts, or it won’t be road-ready for months — you can remove it from your insurance policy. But first, consider:

✅ Pros:

• You’ll likely save money by dropping liability and collision coverage.

• No need to pay for insurance on something you’re not using.

⚠️ Cons:

• If you drop all coverage, including comprehensive, you’re not protected if the car is damaged, stolen, or vandalized while it’s parked or stored.

• If you still owe money on the vehicle, your lender may require continuous coverage.

• Some states require insurance for registered vehicles — even if they’re not being driven. You may need to surrender the registration and plates.

🛡️ Better Option: Switch to “Comprehensive-Only” or “Storage Coverage”

Many insurers offer a low-cost option called “comprehensive-only” or “storage coverage.” This keeps your car protected while it’s off the road, covering things like:

• Theft

• Fire

• Vandalism

• Falling tree branches

• Natural disasters

It’s much cheaper than full coverage and keeps you protected while the vehicle is in your driveway, garage, or storage unit.

🧠 Pro tip: This option is especially smart if you’re planning to repair or sell the vehicle in the future.

⚙️ Steps to Take

1. Call your insurance company. Tell them the car is out of use and ask about comprehensive-only or storage options.

2. Check your state DMV rules. If you remove liability coverage, you may be required to cancel registration or return plates.

3. Make sure the car is parked off public roads. You generally can’t have an uninsured car sitting on a city street.

🧾 Bottom Line

You can remove a broken-down vehicle from your policy—but dropping all coverage could leave you financially vulnerable.
A better option? Pause liability and collision, but keep comprehensive until the car is repaired, sold, or scrapped.