Daniel Kim, 35, who recently stayed in South Korea for more than 13 weeks, has in fact saved about $300 on car insurance and another $100 on monthly mobile costs.
“I called my car insurance and mobile provider to ask for a temporary suspension of my accounts,” Kim said. “The process was easier than I expected. After I came back to the U.S., I was able to restart my account with just one phone call.”
Most car insurance companies are providing temporary suspension services for clients who travel outside of the insured area over an extended amount of time. For those who are traveling for over a month, the amount that could be saved from utilizing the service is significant.
“There’s no additional cost for suspending your account as long as you provide the exact date and duration of your travels,” said an employee at an insurance company. “However, you must note that the DMV can monitor the status of your insurance policy. It’s beneficial to secure a comprehensive insurance to protect your vehicle that will be parked over a long period of time.”
Aside from car insurance, mobile contracts also often provide temporary suspensions.
Meanwhile, the California DMV is legally permitted to share information with insurance companies in the state. Once the liability insurance is suspended for a vehicle, the DMV will issue a suspended effective notice to the policyholder after three months. For policyholders to reactivate their insurance, they must pay $14 and submit copies of their policies.
By Hyoungjae Kim
