After a car accident, your insurance company may recommend that you go to one of its preferred auto body shops to have the damage repaired. Choosing a preferred shop may expedite the repair process, but as with any auto body shop, the possibility exists that you may not be satisfied with the work that was done or the parts that were used.
Fortunately, there may be something you can do about it. Often the best and quickest solution is to talk to the body shop directly, especially if the work done on your car was relatively minor. Explain what your complaint is and what you would like the repair shop to do about it. A service-oriented facility might be more than willing to try to make things right. Further, in some states, repair shops registered with the state are legally responsible for safe and proper repairs.
But what if the repair shop is uncooperative? First of all, don't sign anything saying that you're satisfied with the work done on your car. Next, it may be time to involve your insurance company. If you have a legitimate gripe, there's a chance your company will step in and straighten it out with the repair shop. You can contact the company's claims department directly or, better yet, go through your insurance agent. Depending on the state, some insurance companies that use preferred shops may stand behind the work and guarantee quality.
If you still aren't getting anywhere, contact your state's insurance division and find out if you have any recourse (e.g., arbitration). As a last resort, you might think about hiring a lawyer if the damage to your vehicle was substantial.
Broken windshields and other glass are typically covered under the comprehensive coverage portion of an auto insurance policy. Comprehensive generally provides coverage for physical damage to your vehicle caused not by a collision with an object or another vehicle, but by a variety of other specific perils. This type of coverage is optional in most states and, if purchased, will usually raise your premium and carry deductibles. It may or may not be cost effective, depending on the value of your vehicle.
So, if your windshield is broken but you don't have comprehensive coverage, the cost of replacing it may not be covered by your auto insurance. If you do have comprehensive, the cost probably will be covered, but to what extent depends on the details of your particular policy. Comprehensive coverage is broken down into the different items or perils covered under this section of the policy (e.g., fire, water, theft, etc.). Each is listed separately in the contract and is usually subject to its own deductible, which can often be adjusted up or down. Glass coverage is included as one part of comprehensive, but (unlike the other items covered under comprehensive) typically comes without a deductible. This means that, if your car windshield is damaged or destroyed and needs to be replaced; your auto insurance company will pay the entire bill.
You can usually attach a deductible to your glass coverage if you wish, in which case you would have to contribute a certain amount out of your own funds toward the cost of replacing your windshield. However, while adding a deductible to your glass coverage may be one way to cut your auto insurance costs, it's generally not advisable to do so. For example, if you put a $250 deductible on your glass coverage, you'll end up footing half the cost when your $500 windshield breaks. Whatever amount you save on your premium will probably be more than offset by that out-of-pocket deductible.
Actually, it's very unlikely that any type of insurance would be canceled after you file a single claim. However, filing a claim could increase your premium on certain types of insurance.
For example, your auto insurance premium will almost certainly increase after an accident, especially if you're at fault. The reason for this is simple: actuarial evidence indicates that people who have had accidents in the past are more likely to have accidents again in the future. This means the insurance company could see another claim from you someday, so there is a logical reason to charge you more for insurance coverage. The big question is how much your premium will increase. This is more difficult to anticipate, because insurance companies can use different formulas to calculate rate increases.
Your premium increase may simply be a percentage of the premium you were paying before the accident, or it may be based on a complex formula that assigns point values to various types of accidents. In most cases, your auto insurance policy will not be canceled unless you have a certain number of at-fault accidents within a given period of time (e.g., two or three in one year).
Homeowners insurance premiums, on the other hand, are far less likely to increase after you file a claim. Most insurance companies do not increase homeowners insurance premiums after a single claim, no matter how large, particularly if the loss is caused by a natural disaster.
However, with a second claim under your homeowners policy, it becomes increasingly likely that your premiums will go up. This is especially true if you could have done something to prevent the loss. If you don't maintain your home properly, if it is somehow unsafe, or if you make multiple claims for similar reasons, you'll likely see higher premium rates.
There is one instance, however, when your homeowners insurance premiums will go up after a single claim. If the claim is for a dog bite, and you do nothing to improve the situation (e.g., fence your yard, etc.), your rates are sure to increase. Your insurer may even refuse to renew your policy in this case.
If your son is borrowing your car to take with him to college, he must be listed as either a principal driver or an occasional driver on your insurance policy. Most insurance companies will consider someone as the principal driver on the policy if he or she:
Check with your insurance company to see if you should list your son as a principal driver, and if so, how your insurance coverage and premiums will be affected.
The connection between a driver's safety record and credit rating is not readily apparent to most. Many consumers feel that insurance companies are intrusive when they request such information on an automobile insurance application. Insurance companies explain that credit information is needed to make a complete risk analysis when evaluating an insurance application.
It seems that there is a connection between credit risk and safety risk. Although there is no explanation for the findings, some insurance company statistics show that drivers with derogatory credit, historically file more accident claims than drivers without derogatory credit. Insurers reason that a consumer who is careful with one aspect of their life (e.g., financial affairs) is also likely to be careful with other aspects of their life (e.g., driving habits). Credit information is also needed to determine whether an applicant is likely to pay premiums in a timely fashion.
In most states, the motor vehicles department has a "point" system, which is used to track your driving record. Generally, each type of infraction (moving violations, parking tickets, at-fault accidents, driving under the influence, etc.) is assigned a certain point value. When you are found guilty of one of these infractions, the appropriate number of points is added to your driving record. The more points you have, the worse your record.
Typically, an auto insurance company has the right to review the driving record of anyone who applies for an auto insurance policy from that company.
The purpose of this initial review is twofold:
However, each insurance company has its own method of evaluating applicants, so the points on your driving record may or may not have a direct impact on the rates you pay for auto insurance.
Once you are issued a policy, your insurer probably has the right to review your driving record at any time (depending on your state). Of course, few insurers have the resources or the inclination to run daily checks on the driving records of every policyholder, so the frequency of these checks actually may be quite low. There are, however, certain times when you can be relatively sure an insurance company will be checking your record. These include:
If a review of your driving record uncovers negative information, there's a chance your insurance rates will increase. Insurers typically use their own "point" system to determine the amount of the increase (if any). Although these systems can vary, most insurers use a system based on the Safe Driver Insurance Plan, which is issued by the Insurance Services Office (ISO).
The Safe Driver Insurance Plan lists different types of auto accidents and moving violations, and assigns a "point" value (from 0 to 4) to each type based on the severity of the incident. Under the Plan, as you accumulate points, you are assessed surcharges that generally result in higher insurance rates. The number of points charged determines a premium increase.
You're right to be concerned for your son, but he can probably find an insurance policy even if he's been driving without one for some time. The real question is: How much will it cost him?
Before issuing a policy, insurance companies generally do a thorough investigation of a driver's record and prior claims history. They will check to see whether your son has gotten any tickets in the past several years or whether he has reported an unusual number of accidents. When they discover that he doesn't have a prior claims history (because he hasn't had insurance), he'll probably be classified as a high-risk driver--even if he has a clean driving record.
Some insurers might reject his application at that point. An insurance company has no obligation to issue a policy to a driver who they feel poses an unreasonable amount of risk. Other insurers will issue a policy, but it may be at a higher premium than they would charge a driver who is not considered high risk. Some insurers do not penalize a good driver who has gone without insurance, but your son shouldn't count on finding one without a great deal of research.
There are even insurance companies that specialize in high-risk drivers. You've probably seen or heard their advertisements on television, on the radio, in newspapers, and in magazines. These insurers often claim they'll insure anyone, but your son should probably make them a last resort. The premiums on policies issued by high-risk insurers tend to be much higher than those from standard insurers.
If your son lives in a state that has a compulsory insurance law (requiring him to have at least some level of liability coverage), his state may have created an assigned-risk pool to provide coverage for high-risk drivers. If he has trouble obtaining insurance coverage, he can contact his state's assigned-risk pool directly or ask an insurance agent for more information.
It depends upon your father's abilities. While the eyesight, hearing, reflexes, and other faculties of some seniors are more than adequate for driving, the driving abilities of other individuals may deteriorate badly with advanced age. Numerous states have instituted more stringent license renewal policies for elderly drivers, such as more frequent and in-person renewals, eye tests, and driving tests upon reaching a designated age.
When measured by crashes per mile driven, drivers between the ages of 25 and 64 have a fairly constant rate of accidents. This rate begins to rise at age 70, and goes up rapidly at age 80. Even more alarming is the fact that drivers 85 and older are 11 times more likely to be killed in a crash than any other age group. This is generally attributable to increased physical frailty.
These factors cause insurance premiums to rise for drivers entering their 60s, and to increase thereafter. This increase is often moderated by other factors, which may include discounts for fewer miles driven per year.
One way your father can improve his skills--and perhaps reduce the cost of his car insurance--is by taking a driver improvement course. Many states require insurance discounts for drivers (usually those over 55) who complete a state-certified course, while other states allow insurers to offer voluntary discounts for those who complete such a course. An insurance agent can provide information on available discounts and course requirements.
It's important to properly evaluate whether or not your father should be driving. You'll want to keep him, and other drivers, safe and free from injuries resulting from auto accidents.
Many insurance companies issue automobile insurance, so you should have little trouble finding a good one. There are many shopping options when looking for insurance:
Remember that your profile will be a good fit for some companies but possibly not for others. This can result in quite a big variance in rate quotes. Shopping around will help you find the policy that's right for you.
Compare premiums offered by various companies and look for high customer service standards and financial strength. The ability to pay a claim promptly will be important if you're ever involved in an accident. Resources for researching insurance companies include state insurance bureaus and consumer reference guides.
Finally, you should ask about discounts. You may benefit from multi-car and/or multi-driver discounts. You may receive a multiple policy discount if you purchase your auto insurance coverage through the same insurer that covers your homeowners or renters insurance. An insurer may also offer you a discount if you have a safe driving record or have completed a driver's education course.
Take the time to compare multiple companies and rates to make the decision that's right for you.
With the rising cost of fuel, insurance, and automobiles, more and more urban Americans are choosing to use public transportation for day-to-day travel. But when it's time to flee the city, you probably find that a car is the easiest way to get where you want to go. If you drive at all, it's a good idea to have an automobile insurance policy--even if you don't own a car.
Many insurance companies offer a "nonowners policy" for people who drive occasionally but don't own their own car. Nonowners policies typically include liability, medical payments, and uninsured/underinsured motorist coverages. Nonowners policies generally do not include comprehensive, collision, towing reimbursement, or rental reimbursement coverage.
You can get approximately the same coverage if you buy the limited coverage offered by car rental companies. But if you rent a car for more than, say, 10 days per year, buying a nonowners policy is usually more cost effective. A typical nonowners policy will cost from $300 to $500 per year, depending on where you live, your driving record, and various other factors.
What's more, a nonowners policy provides coverage for any car you drive, not just rental cars. If you borrow a car from a friend and get into an accident in a borrowed car, your friend's insurance would kick in first. But if, for example, the accident was your fault and the damage to the other driver's property exceeded the liability limits on your friend's policy, your nonowners insurance policy would cover the excess (up to policy limits).
As you send your children off to college, you probably have a lot of things on your mind - whether they'll eat right and get enough sleep, how to pay the tuition bills, what to do with that empty bedroom, etc. For most people, insurance concerns are pretty low on the priority list. But there are some important issues you should consider.
Issue #1: Health insurance - make sure your child is covered.
Your medical plan probably covers your children until they're somewhere between 20 and 24 years of age, regardless of whether or not they live at home. But if the plan is an HMO and your child's college is far from home, accessing an approved provider may prove difficult. As an alternative, consider purchasing health insurance coverage through your child's college. Many colleges and universities offer low-cost health insurance for students. Cost and level of coverage vary greatly from one school to the next, but school-subsidized health insurance is often less expensive than continuing coverage through your existing health plan. And since health care is typically provided on-campus, it may be easier for the student to access.
Issue #2: Homeowner's/Renters insurance - make sure your child's possessions are covered.
If your child lives in a dorm or other university housing, their personal property is typically covered under your homeowners insurance policy. Check your policy for coverage limitations on computers and stereos, if your child can't live without these. Once a student moves out of the dorms and into an apartment, they are usually no longer covered under your policy. Off-campus students should purchase a renters insurance policy to cover their possessions.
Issue #3: Auto insurance - make sure the car is covered.
If your child will be taking a car to school, make sure the car is properly insured. If the child owns the car, then the insurance policy must be in the child's name as well. If the child is "borrowing" a car from Mom and Dad, the child must be listed on the insurance policy. Some insurance companies may require the child to be listed as the primary operator, since the car is in the child's possession and not the parents'.
A standard auto insurance policy is a package of different kinds of coverage. You generally have some flexibility in terms of both the types and amounts of coverage you select. However, practically every state has enacted insurance laws that require drivers to carry at least some auto insurance. Many states even require that you present proof of insurance before you register a car. So the short answer to the question is that you will probably need to insure your car, regardless of its value.
Every state requires that drivers carry liability insurance. The liability coverage section of an auto insurance policy provides financial protection from liability claims against you when you (or certain other people) cause an accident that results in bodily injuries to other people and/or damage to their property. Every state has mandatory minimum levels of coverage in this area. The rationale behind such laws is that at-fault drivers should be able to compensate victims who suffer accident-related losses. But the required minimums in most states don't even come close to covering the costs of a serious accident. Consequently, if you wish to be adequately protected from liability claims, your liability coverage should probably exceed your state's requirements.
Other coverages are required in some states and optional in others. Medical payments coverage and uninsured/underinsured motorist coverage are two such coverages. Medical payments coverage covers medical expenses incurred by you, your family members, and your non-family passengers. Uninsured/underinsured motorist coverage covers losses you and others suffer as a result of an accident caused by a driver who either has no insurance or insufficient insurance. If buying these coverages is optional in your state, base your decision on your needs, circumstances, and other factors. Consult your insurance agent for more information.
Collision and comprehensive insurance is optional in virtually every state. The collision and comprehensive section of your policy covers physical damage to your own vehicle resulting from collisions and a variety of other causes (e.g., fire, falling objects). It may also cover losses associated with theft. However, your car's value plays a big part in assessing your need for this type of coverage. It may not be cost-effective if your vehicle is worth less than $1,000 because you'll have to satisfy a deductible, and the most you'll receive (even if your car is totaled) will be its actual value (i.e., after depreciation). That's not much, especially taking into account the premiums you would have been paying for coverage.
Whether you lease your car or have an outstanding auto loan, GAP insurance can provide valuable protection during the early years of your car's life. As we all know, a new car's value drops the minute you drive it off the lot. And unfortunately, if a bus plows into the side of your new car five minutes after you drive it off the lot, your insurance only covers the actual cash value of the car. At this point, there's a good chance the insurance payoff isn't enough to pay off your outstanding lease (or loan) balance.
GAP insurance was created for just such a situation. If a loss occurs (theft, total loss in a collision, etc.), GAP insurance will pay the difference between the actual cash value of the vehicle and the current outstanding balance on your loan or lease. Some lenders and lessors actually require you to carry GAP coverage until the outstanding loan/lease amount drops below the value of the vehicle.
If you decide to purchase GAP insurance, make sure you don't keep the coverage for longer than necessary. Once the outstanding balance on your loan or lease drops below the value of your vehicle, GAP insurance becomes an unnecessary expense.
GAP insurance is typically not very expensive, since the coverage amount is relatively small. However, the cost will vary depending on the type and value of the vehicle you purchase. Cost may also vary from one insurer to another.
People are often confused about who is covered under a standard auto insurance policy. There are typically only one or two names listed in the "Named Insured" section of an auto insurance policy, but that doesn't mean that those are the only people who are covered under the policy. As a general rule, auto insurance coverage actually follows the vehicle, not the driver. So if your car is involved in an accident, the car typically receives the full coverage provided by the auto insurance policy, regardless of who is driving.
Auto insurance policies normally provide coverage for your car if it is driven by any of the following people:
Your insurance company may require that certain conditions be met in order for other drivers to be covered under your policy. For example, anyone who drives your car must typically be a licensed driver. Additionally, most insurance companies require that anyone driving your car be doing so with your permission. This doesn't mean that you have to give explicit permission each time someone takes your car for a spin, but the person driving must have a reasonable belief that he or she is entitled to do so.
Because these conditions can vary, it is important to check your policy carefully and make sure you understand any limitations that might apply before you allow others to drive your car.
Keep in mind that most insurance companies require you to list the principal and secondary drivers of every insured vehicle. If you have a teenage driver under your roof, he or she should be listed on your insurance policy even though your insurance rates may increase substantially. Technically, a teen who is not listed on your policy may still be covered if he or she had an accident. But your insurer could charge you retroactively for coverage on your teen from the date that your teen became a licensed driver.
That depends on which state you live in. Each state has its own rules governing the cancellation of automobile insurance policies. You should check Part F of your personal auto policy (PAP) regarding termination and cancellation conditions. This section will address when, how, and for what reasons coverage under your personal auto policy can be terminated. You should also check any applicable endorsements regarding cancellation.
If you fail to pay your premium on time, your insurance company has the right--after providing you with at least 10 days notice--to cancel the policy. The notice of cancellation, mailed to the named insured shown on the Declarations page of the policy, will inform you of the date and time the cancellation will take effect. Even if you're only a day late with your premium payment, your state may allow your insurance company to cancel your insurance policy, and the company won't necessarily reinstate you once it gets your money. Furthermore, once your policy has been canceled, you may find yourself paying more money for a comparable policy or having trouble finding insurance at all.
That being said, some insurance companies will not immediately issue a cancellation notice. You may simply receive an overdue notice, asking you to pay the past-due premium plus a late fee. Other companies may state in the cancellation notice that if payment is received by your insurance agent prior to the effective cancellation date shown, your coverage will be considered "reinstated." It may also be possible for you to reinstate coverage after the effective cancellation date by paying the overdue premium and perhaps an additional sum. (However, it is likely that you will not be covered for any accidents between the effective date of cancellation and the date of reinstatement.)
In any event, you must look to state law and your automobile insurance policy to learn whether your policy will be canceled. Feel free to telephone your insurance agent to ask for assistance.
Insurance premiums depend on several factors, including your age, sex, place of residence, and driving record; the amount and type of coverage you select; and whether you drive your vehicle primarily for business or personal purposes. This explains why one driver might pay a different premium than another for the same make of motor vehicle.
But why might it cost you more to insure one sport utility vehicle (SUV) than another? In addition to the factors listed above, insurance companies consider the likelihood that a particular brand of vehicle will be stolen, vandalized, or involved in an accident. They also track the costliness of repairs. Insurance companies obtain their information by consulting various claim statistics. The Highway Loss Data Institute, for example, indexes the amount of money insurance companies have paid out (on average) for collision, injury, and theft claims for various types of motor vehicles. Therefore, the SUV that is most attractive to thieves across the country will probably be more expensive to insure than the one that is stolen least often.
In addition to these industry wide statistics, insurance companies consider their own experience with claim payouts. For instance, if one company has paid numerous claims regarding a particular make of SUV, it may charge higher insurance rates for that type of SUV than another company would. For that reason, it's wise to obtain quotes from several insurance companies before insuring your SUV.
Note: In some cases, the state, not the insurer, decides how each vehicle is rated.
In most states, auto insurance functions under a traditional fault-based system. Under this system, insurance companies make payments based on each person's degree of fault in an accident. However, long and costly court battles may be required to determine who was at fault in many accidents. In an attempt to reduce this problem, thirteen states (CO, FL, HI, KS, KY, MA, MI, MN, NJ, NY, ND, PA, and UT) have adopted an alternative no-fault system of insurance.
Under a no-fault system, when you have an accident, your auto insurance provider automatically pays for your damages (regardless of fault) up to a specified limit. In exchange for this guaranteed payment, you must forego some of your rights to sue the other driver involved in the accident. By the same token, you are also protected from being sued in the event you are at fault in an accident. There are elements of no-fault in all auto insurance coverage. For example, medical payments and property damage are typically paid regardless of fault.
Under a pure no-fault system, your auto insurance provider pays for any economic damages (such as medical bills, lost wages, etc.) up to the policy limit, and you are completely prohibited from suing a negligent driver for "non-economic" damages (such as pain and suffering, loss of companionship, etc.).
At the present time, no states function under a pure no-fault system. Instead, all thirteen no-fault states have adopted a modified no-fault system. This means that your insurer still pays for your economic damages up to the policy limit, but you may be allowed to sue for non-economic damages if the amount of these damages exceeds a specified threshold.
If your fiancé has a poor driving record, you can expect it to affect your insurance premium after you get married. Your automobile insurance policy covers you, your spouse, any other named insured under the policy, and any licensed driver in your household. If any of those people have a bad driving record, it will affect your rates.
Of course, insurers consider marital status when calculating risk, so the very act of tying the knot may improve your future spouse's risk profile. But if his or her driving record is really bad, you may want to consider additional strategies to stave off a hike in your premium.
If you arrange to purchase all of your insurance policies (including your homeowners policy) from one company, you may benefit from multiple car and/or multiple policy discounts. Additionally, in some states, your future spouse can take driver safety courses to improve his or her driving record. Further, with a combined income, you might be in a position to raise your deductibles to keep your premium down.
Your fiancé may also qualify for a low mileage discount by using public transportation for his or her commute to work. If all else fails, you may be able to use a "named-driver exclusion" clause after you're married to exclude your spouse from your insurance policy. But be careful: that means your spouse is not covered by your insurance company to drive your car. Your spouse could insure his or her car separately, and if it is an older model, waive collision and/or comprehensive coverage. Whether any of these strategies will work for you depends on your circumstances. Your insurance agent can discuss all of your policy options with you and make recommendations.
SR-22 insurance is used differently in different states, so it is difficult to give a specific answer to this question. An SR-22 insurance policy is generally a motor vehicle liability insurance policy required for reinstatement after your drivers license has been suspended or revoked. SR-22 insurance is uniquely suited for these situations, because it requires the insurance company to notify the department of motor vehicles if the policy is canceled, terminated, or lapses. If any of these things happen, your license will typically be suspended until the policy is brought current or reinstated. Under the laws of most states, you must carry SR-22 insurance for a certain period (often three years) after the end of your suspension or revocation.
If you need an SR-22 policy, you'll have to do some research, because not all insurers offer SR-22 insurance. You may need to find an insurance company that specialized in high-risk drivers. Once you have purchased the insurance, you have to provide proof of SR-22 insurance to the department of motor vehicles before your license will be reinstated. Some states require you to present a copy of your SR-22 binder (or your application for the binder), while other states have an SR-22 form that can be used as a substitute for the actual insurance binder.
In some states, SR-22 is used strictly in DUI cases, but this is not always true. Some states also require SR-22 insurance to prevent license revocation or suspension in certain cases--for example, if you have an uninsured accident or you get several tickets in a short period of time.
As you have probably discovered, insuring a teenage driver can be very expensive. Drivers under the age of 25 pose the greatest risk to insurers because of their high level of at-fault accidents. Insurance companies seek to limit their exposure by charging higher insurance rates for 16- to 24 year olds than for any other age group.
The least expensive option would probably be to add your teenager to your existing auto insurance policy once he gets his permanent driver's license. Although this can still be an expensive prospect, your teen might be able to take advantage of certain discounts as a driver on your policy (e.g., safe-driver and multiple-car discounts for which you are eligible).
If you drive an expensive vehicle, it will be even more costly to add your teen to your policy. In this case, you might want to buy your son his own car (a used economy model, of course) and insure it in his name, rather than add him to your own policy. Older vehicles generally pose less risk to insurance companies, because repairs tend to be less expensive than repairs to newer models. Lower risk for the insurer typically translates into lower insurance premiums for you.
The only way to determine your most cost-effective option is to contact your insurance company. If you're thinking about purchasing a used car for your teen, be prepared to tell your insurer the make, model, and year of the cars you're considering. This way, your insurance agent can give you accurate insurance quotes. These quotes can help you decide whether to purchase separate insurance for your son or add him to your policy; they may also help you decide which car to purchase, if you go that route.
An auto insurance company's decision to declare a car a total loss is based on two factors:
Basically, if the cost of repairs exceeds the car's value, the insurance company will declare your car totaled and give you a cash settlement rather than pay for the repairs. So a relatively minor accident could be enough to total an older or inexpensive car, while a very serious accident may not cause a more expensive model to be totaled.
When your car is totaled, the insurance company has an obligation to "make you whole," as that is defined in the policy. This essentially means you have to be left in approximately the same financial position you were in before the accident. To accomplish this, the insurance company will typically write you a check for the actual cash value of the vehicle, minus any deductible on your policy. After the settlement is paid, the damaged car goes to a salvage yard, where it is typically auctioned to the highest bidder and used for parts. The insurance company keeps the proceeds of this sale.
If you want to keep your damaged vehicle, some insurance companies will forgo the auction process and turn the car over to you (usually in cases where the car is over 10 years old). They will still have to pay you the actual cash value of the car, minus any amount the car would have brought at auction. At that point, it is up to you to pay for the necessary repairs. If your insurer allows you to do this, you will have to inform your insurer right away if you want your car back. Once it goes to the salvage yard, you'll have little chance of getting it back, since only licensed auto salvagers are normally allowed to attend these auctions.
Even if your insurer allows you to keep the car, it may not be worth the time and expense to get it back on the road if your state has a number of special requirements you must satisfy (e.g., buying a salvage title or having the car inspected by the state police after it's been repaired).
Remember, the check you receive from your insurer is for the actual cash value of the vehicle, which may not match the cost of a similar car in the real world. If you think the settlement amount your insurer offers you is too low, but you don't want to go to the trouble of having the damaged vehicle repaired, you may be able to negotiate a higher settlement. To do this, you'll need to bring in an independent appraiser (probably at your own expense). If this appraisal is significantly more than the insurer's internal appraisal, the insurer may agree to increase your settlement.
Of course, everyone wants to save as much as possible when it comes to auto insurance. But it's important to remember that auto insurance is not just coverage for accidents that happen while your car is being driven. Different parts of your auto insurance policy serve different purposes, so the question is really more complicated than it appears.
Collision coverage, liability coverage, uninsured/underinsured motorist coverage, and medical payments coverage are what most people think of when they hear the phrase "auto insurance." Each of these coverages protects you against some aspect of a potential automobile accident. But comprehensive coverage is another important part of your auto insurance policy. Comprehensive coverage insures you against damage to your vehicle caused by events other than an accident -- for example, fire, theft, flooding, or vandalism. Any of these things can happen to your car, even when it's not being driven. The risk of certain occurrences, such as theft and vandalism, may be heightened if your vehicle will be parked outside an unoccupied house for any length of time. So, the basic answer to your question is that you might be able to suspend part of your auto insurance if your car won't be driven for an extended period of time, but it would be unwise to cancel your policy entirely.
Now the question is whether your auto insurance company (and your state) will allow you to temporarily suspend part of your insurance coverage. Most states require that all registered vehicles carry a minimum amount of insurance coverage, so suspending your coverage may also mean dealing with the hassles of suspending or canceling your registration (and reinstating it when you return). And even if the state does have a system that allows this, your insurance company may or may not be willing to allow you to suspend part of your coverage temporarily. To find out for sure, you'll need to contact your insurance company and ask. One more important consideration: if you have an outstanding car loan on your vehicle, the terms of the loan probably require that you keep the car fully insured. Check your loan documentation carefully before you take steps to suspend your insurance coverage.
Maybe your insurance company is unwilling to suspend part of your coverage, and you think there's little risk that your car will be damaged or stolen from your garage while you're gone. Whatever you do, don't think that you can simply stop paying your premiums, let the insurer cancel your policy, and then purchase a new policy when you return from your winter in Florida. A canceled insurance policy will show up on your credit report, and can make it extremely difficult (and expensive) for you to get auto insurance coverage in the future.
