No, you cannot legally "suspend" your car insurance in California. State law requires all registered vehicles to maintain continuous liability insurance coverage. The only legal way to stop paying premiums is to formally cancel your policy, but this requires you to also surrender your vehicle's license plates to the DMV and place the registration on hold. Simply letting a policy lapse while the car is still registered leads to severe penalties.
The mandatory coverage in California is often referred to as liability insurance, which covers injuries and property damage you cause to others. The minimum required limits are 15/30/5: $15,000 for injury/death to one person, $30,000 for injury/death to more than one person, and $5,000 for property damage.
If you plan to store a car and not drive it for an extended period, the correct procedure is to file a Planned Non-Operation (PNO) with the DMV. This officially suspends the vehicle's registration, eliminating the legal requirement for insurance. You can then cancel your insurance without penalty. Driving a car on a PNO status is illegal.
The consequences for a lapse in coverage are immediate and significant. The DMV is electronically notified by insurance companies. You will face fines, and your driver's license and vehicle registration could be suspended. Reinstating them is a costly and time-consuming process.
| Consequence of Lapsing Insurance | Typical Fine/Cost | Additional Notes |
|---|
| First-time lapse fine | $100 - $200 | Issued by the DMV |
| License and Registration Reinstatement Fee | $55 | Required after suspension |
| Impound Fees (if caught driving) | $150+ per day | Varies by jurisdiction |
| SR-22 Insurance Requirement | 20-50% higher premiums | Required for 3 years after a serious violation |
| Increased Future Premiums | 30%+ average increase | For being classified as a high-risk driver |
The safest approach is to contact your insurance agent to discuss your specific situation. If you're not driving the car, a PNO is the legally compliant path.
