Don’t Take that chance! Don’t drop your auto insurance on a seasonal vehicle unless you have surrendered your tag to PennDOT and talked to me. Pennsylvania allows you to drop your auto insurance on a seasonal vehicle as long as it is not registered.
If you do not surrender the tag you could have severe consequences. Pennsylvania law states that if you do not have auto insurance on a registered vehicle you can be fined, however that could be the least of your worries.
Pennsylvania courts have ruled that if you have an uninsured registered vehicle and you are involved in an accident you do not have any first party benefits. First party benefits include medical, work loss and funeral expenses. This applies NOT ONLY to the uninsured car but any insured cars you own.
If you are in an accident with a car you have insured and registered your insurance company can deny you first party benefits if they find out you have another car that is registered but not insured. You can go online and get details of a case, Progressive v. Anthony Kennedy.
This is why I do not recommend dropping your auto insurance on a seasonal vehicle. The penalty is too severe. You may have good intentions but if you forget to return the tag you put yourself in a very vulnerable position.
It is not unusual for clients with antique and classic cars to store their cars for the winter. The snow and salt is not good for the vehicle so they keep it in the garage. However, then a beautiful sunny and warm January Saturday comes along and they can not resist the temptation to drive the classic car with its top down, UNINSURED and EXPOSED to a lawsuit!
Another risk you run, even if you return the tag to PennDOT, is that your classic or antique car could be destroyed by a fire in the garage or someone could hit your car on your property. Your homeowner’s insurance will not cover the car in the event it is destroyed by a fire, vandalized or stolen.
Give me a call to discuss your options on how to properly cover a vehicle that is seasonal or out of commission for a short period of time. I will discuss your situation and tell you the best way to reduce your risk. There may be some very affordable options for you. You may be able to get an Antique car policy which would reduce your premium substantially.
Another reason to reconsider dropping your coverage: You may be getting a multi car discount. You could lose the discount, causing the premium on your other cars to increase and you might not save as much money as you expected.
If you decide to surrender your tag and drop your insurance, go to our website at www.spencerinsurance.com and check out our Resources page and Links to get the information and form you need to surrender your tag properly or get a seasonal registration from the state.
Many times the premium savings you receive by dropping your insurance on a vehicle is small compared to the risk you take of being sued without insurance. Then the “True Cost of Insurance” becomes much greater! Call me today to make sure you are not being penny wise and pound foolish!
