Do you need insurance for a car in storage? Yes, it would be best to have insurance for your vehicle when it is packed in storage. If you have your car in storage, you are not legally required to have a car insurance policy if it remains there. Although there are some levels of risks your car in storage is prone to, some types of car insurance policies will offer coverage over unexpected events.
Some of the risks your vehicle is prone to include vandalism, damage, or theft. Some types of car insurance policies cover your car in case of any of these unexpected events. This write-up contains insights on whether or not you need car insurance as well as the type of car insurance for your car in storage.
Does My Car Need Car Insurance If I’m Not Driving It?
Most states do not require car owners to buy car coverage for their cars in storage. However, all drivers are required to have a mandated level of coverage to register their vehicle if it is registered for road use. The minimum mandatory coverage every car owner should have is liability coverage, which covers costs in case they cause injuries or damage to someone else.
Common Issues Your Car in Storage May Face
As previously stated, your car in storage is prone to several types of risks. These risks include:
- Vandalism.
- Theft.
- Damages to belts or wiring due to rodents.
- Natural disasters like fire, flood, or weather events.
- Falling objects.
A comprehensive car insurance policy usually covers damages due to these events, making it the best option for cars in storage. If your stored car gets damaged due to any of the issues your policy covers, your insurance company will pay to cover repair costs up to your car’s cash value minus your deductible.
What Car Insurance Policy Covers a Car in Storage?
Unfortunately, parked car insurance is not a type of car insurance policy. If you have a car in storage, some insurance companies allow you to reduce your coverage. Some insurance companies may require your car to be stored for a certain period, usually 30 days.
Other insurance providers may require you to cancel your car registration since you are required to provide proof of insurance before you can register a vehicle. However, depending on your state laws, reducing your coverage to comprehensive-only or liability coverage may be a good option.
Comprehensive Coverage for Your Car in Storage?
If your car is in storage, comprehensive car insurance coverage is the best option. This policy covers several expenses if your car is damaged due to other situations other than a collision. These situations include theft, vandalism, fire, hail, and so on. Having this insurance coverage protects your car and you from unexpected costs.
How Much Car Insurance for a Stored Car Cost
There is no specific cost for a comprehensive insurance policy. Insurance companies consider several factors to determine how much the policy will cost. These factors include:
- The driver’s age.
- Driving record.
- Insurance claim history.
- Car make, model, and mileage.
- Driver’s credit score.
- Coverage level.
- Deductible.
- Location.
Using these factors, insurance companies can determine how much risk your stored car poses and how much they will charge on premiums. However, these factors may qualify you for lower premiums if they pose less risk.
Should You Cancel Insurance Coverage For Your Car in Storage?
It is a bad idea to cancel insurance coverage for your car in storage. Canceling your coverage can lead to the following disadvantages for your car in storage:
Gap in Coverage:
Canceling your car insurance coverage can create a gap in your insurance record. This gap can cause insurance companies to consider you a high-risk driver, which can result in higher premiums when you purchase a policy in the future.
No Protection Against Unexpected Damages:
If you do not have car insurance coverage, you will be responsible for damages sustained by your vehicle while in storage. For example, if a falling object like a tree falls on your garage, causing damage to your car, you will have to pay the overall cost out of pocket.
Policy Requirement Violation:
You may not be allowed to cancel your policy in most cases. If you are financing your car, you may be required to maintain your car insurance as a part of your car loan condition.
However, keeping your car in storage helps you save on car insurance, but it is advisable to have comprehensive insurance coverage so that your car will be protected against any damages your car may sustain while in storage.