You can still insure a car that is not driven often. If you have a vehicle that doesn’t get used much — like a convertible during winter or a classic car— you might opt for parked car coverage. This is comprehensive-only car insurance that covers vehicles that won’t be driven at all for a long period of time.

What is an infrequent driver?

Answer: The definition of an occasional driver can vary by state and from one insurance company to the next. For example according to State Farm’s definition, an occasional driver is someone unmarried and under 21 who drives the car less than 25 percent of the time, or puts on less than 25 percent of the mileage.

How does SmartMiles work?

SmartMiles is a pay-per-mile auto insurance program designed to save low mileage drivers money, where the premium you pay varies by how many miles you drive, giving you more control over your auto insurance costs than a traditional policy.

Do you need full coverage if you have a car loan?

Most people don’t buy a car outright – they take out a car loan to pay for it. That means the car is still owned by the lender until the loan is payed off. The lender will want you to have full coverage car insurance on the financed car to protect their investment.

What happens if I can’t pay my car loan?

If you fall behind and can’t redeem the loan, it can repossess the car (take it back) after the first missed payment and sell it at auction (more about the repossession sale below). Here’s how it works. The lender will send someone out to tow your car to a storage facility.

Do you have to pay collision insurance if you have a car loan?

Your comprehensive or collision insurance will pay out up to the actual cash value, which is typically lower than the loan amount. In this case, let’s say it’s $16,000. But if you still owe more than that on the loan, in this scenario say $19,000, you would have to pay the difference.

Do you have to get your car repaired if you have a loan?

If you have a loan on your vehicle, it means you should get the car repaired. Again, your car insurance company may assign or need to pre-approve the mechanic. Your lender will want their collateral—the car—to be fully working and want you to repair any damages.