Some of us tend to cancel our car insurance or rather not renew it when we are traveling home country for vacation. The simple logic for most of us is that we are NOT taking the car on road, why bother to pay for insurance. Unfortunately, even though logically it seems correct, sometimes you can end up in complicated situation where you may regret it. Let me share you an incident that happened to a friend of mine and why you should not cancel your car insurance, when on vacation.
Actual incident – Expired car insurance on Vacation
It just happened that a friend of mine left to India for vacation…as he was leaving for vacation, he did not pay much attention to renew his car insurance… logically most of us think, we are not driving during vacation, why bother to pay for insurance? The car insurance expired around couple weeks after he left for vacation. He came back to US after four weeks of vacation…On the day he lands in US, he wanted to buy some stuff, so picks up his car keys and goes to the parking lot where he parked the car…Guess what ? There is NO Car…he rushes and comes and asks his roomies about car, they say they do not know… because, they never checked the car as he forgot to tell his roomies to watch the car when on vacation… He asks few people around if they saw the car, no one gives any positive info…
If you look at the situation, unfortunately, there is nothing much he can do…other than telling police that he lost his car and give the car information…. He cannot really call the insurance and tell them that he lost his car and ask them to pay money or give a new car because the insurance expired …The tricky part is, no one exactly knows when the car was stolen…. so he cannot really report to insurance saying that his car was lost during his insurance coverage. Some of you may think, what if you report that car was stolen when he had coverage ? Suppose, they trace the car and figure out that it was stolen when the insurance was expired, the guy is in trouble for telling false information to police…the situation here is very complex and you cannot really do much…we can talk few other scenarios, but not very fruitful results…
Lesson : Do NOT cancel car insurance when on vacation in home country
One way to avoid this complex situation is to make sure you have your car insurance coverage active even when you are out of country…If you think the insurance is about to expire, you should renew it so that it fully covers your car, when you are out of country. Also, it is a good idea to talk to insurance about this kind of scenarios and seek their advice… This problem might only arise when you have an open parking lot…if you do have underground and restricted parking, you may not end up in this kind of complex situation….but still, what if someone tries to steal something like car rims or any other car related parts ? I think it is worth to have car insurance coverage active when you are out on vacation.
What do you think ? Do you have any other car insurance related incidents to share ?
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