Pact car insurance review
An app-based policy that lets Ohio drivers pause coverage for the times they’re not driving.
finder.com's rating: 5 / 5
- Get a quote if you have a car you don’t drive every day.
- Pick something else if you don’t want to use an app to manage coverage.
- Drivers in Ohio can get coverage.
New car protection
|Pay schedule||12 months|
|Claims methods||online, phone|
|New car protection||No|
- Instant coverage
- On-demand policy changes
- Pause coverage
- Quick claim payments
- Strong financial ratings
- Only available in Ohio
- App-driven insurance
- Potential to misunderstand car laws
|Anti-theft device discount||No|
|Defensive driving discount||Yes|
|Good student discount||No|
|Safety device discount||No|
|Special employment discount||No|
Sarah George is a writer at Finder who unravels complicated topics about insurance, business and finance. She's been wordsmithing for nearly five years, after earning an English education degree. Her insurance know-how has been featured on CarInsurance.com. You can usually find Sarah sipping hot tea and talking through movie plots in her downtime.
Pact has an inventive model that uses technology to streamline your account while letting you pause coverage, similar to a temporary storage policy. It’s easy to use and could save you time and money by letting you skip coverage when you don’t need it.
However, make sure to follow state insurance and parked car laws while using this unique insurance. It would be easy to forget your coverage is paused just for a quick trip to the grocery store. And the coverage is only available in one state at the moment, so you might want to wait until this type of coverage has been vetted a little more.
What insurance coverage does Pact offer?
Pact whittles down the coverage bells and whistles, leaving you with the basic options. Coverage includes:
- Bodily injury liability. Safeguard against medical expenses for drivers or passengers injured in an accident you’re responsible for.
- Property damage liability. Cover another driver’s car repairs if you’re at fault.
- Collision. Get the repairs your car needs if you hit another car or object.
- Comprehensive. Shelter your car from damage not caused by collisions, like tornado damage or hitting a deer.
- Uninsured/underinsured motorist. Prevent your bank account from taking a hit when the driver responsible for your car’s damage can’t pay.
- Medical payments. Get the medical help you need for injuries related to an at-fault accident.
- Loan/lease payoff. Bridge the gap between what you owe on your car loan or lease and your car’s value if it gets totaled.
- Roadside assistance. Access 24/7 assistance for battery jumpstarts, flats, fuel delivery, lockouts and towing.
- Transportation reimbursement. Pay for a rental car, Uber or Lyft ride while your car is in the shop for a covered accident.
What extra benefits does Pact offer?
Pact keeps its service in line with the digital age, offering benefits such as:
- Instant coverage. You can get coverage minutes after going through a simple application process on your phone.
- Pact pause. Schedule a coverage pause to save money while you’re not driving.
- Built-in savings. Pact may not offer explicit discounts, but the savings are built in when you pause coverage. You might save up to $70 a month, according to the company. When scheduling pauses, the app instantly shows how much you’ll save, and that savings gets applied to your next payment.
- Mobile app. Manage most of your policy needs through the app, including your application, digital insurance card, claims and roadside assistance.
How does Pact pause work?
Pact pause lets you pause coverage while keeping comprehensive coverage in place, if you have it. You’ll receive up to 10 pauses per six-month term and can schedule a pause for two to 14 days. When you need to drive your car, you can unpause coverage through the app.
Pact pause is ideal for cars you don’t drive much, like a convertible you only drive in the summer, a classic car you only drive to shows or a car your college kid only drives when they’re home.
The pause removes important coverage for legal driving like liability and underinsured motorist, so you shouldn’t use your car during this period or you could be flagged for driving uninsured.
What should I watch out for?
You could save by pausing your coverage, but you should know the downsides of using this feature.
- Less savings than expected. If you only buy your state’s minimum coverage, you won’t see as much savings as other drivers.
- Forgetting to pause. Pact doesn’t offer savings if you forget to pause your coverage ahead of time.
- Driving during a pause. If you or anyone else drives your car during a pause, you won’t get protection during the paused coverage. Also, you may get penalties for driving underinsured, including fines or license suspension.
- No policy changes. You can’t make policy changes while a pause is scheduled because they could affect your estimated savings. If needed, cancel your pause and update your policy.
Uninsured car laws
Most states require insurance to register a car, drive or park on public roads. That means your unused car will need to sit in your driveway or garage while your coverage is paused.
When you Pause, your policy is active, but driving-related coverage is not. This means you’re technically insured and your policy is active, since you and your vehicle are named on your policy. However, as your driving coverage have been removed, you are not covered for any driving-related incidents with the vehicle during this time.
Pausing your insurance might also violate the terms of your car loan, since many lenders require both collision and comprehensive coverage.
Some states like California and Ohio also require an Affidavit of Non-Use registration to keep a car without insurance. You may need to check with state authorities about handling coverage for your unused vehicle.
Pros and cons of Pact car insurance
- Convenient service. From quick quotes to fast claims filing and payments, Pact’s model is fast-paced.
- Instant coverage. Follow a simple application process to get coverage in minutes.
- On-demand policy changes. Policy updates apply automatically.
- Quick claims. The app boasts that some claims get paid as quickly as the next day.
- Strong financial ratings. Pact is underwritten by State National Insurance Company, which has an A rating from A.M. Best.
- Potential to misunderstand car laws. Make sure you’re following all state laws, including parking an uninsured vehicle.
- App-based. This policy relies heavily on the app — a model that doesn’t fit every driver.
- Available only in Ohio. The company has a limited service area, but is expanding.
Compare alternatives to Pact
How to apply for Pact car insurance
The company offers a streamlined application process. To apply:
- Download the Pact car insurance app.
- Take a photo of your driver’s license and let Pact fill in your personal information.
- Enter details about your car and other drivers.
- Choose coverage, finalize payment and start your policy.
What info do I need to apply?
You only need a few pieces of information to apply, including:
- Phone number
- Drivers license
- Vehicle information
- Additional driver details
How do I make a claim with Pact?
Pact lets you file a claim through the app, or you can call a representative.
- App. Find the claims filing center from the app’s main menu.
- Phone. Call the claims team at 855-722-8170.
Frequently asked questions about Pact
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