Car Storage Insurance, Explained
Car storage insurance is a reduced-coverage insurance ideal for vehicles that remain in storage or otherwise undriven for an extended period.
Written by Abbey Orzech
Reviewed by Bellina Gaskey
Car storage insurance, otherwise known as “parked car insurance” or “comprehensive-only coverage,” is a reduced coverage
car insurance
option that can lower your insurance rates without leaving your parked or stored car defenseless.Some people have summer cars, some have hobby cars they spend months fixing up before they see the road, and some simply don’t have use for one or more of their vehicles at a time. Rather than continuing to pay for
full coverage insurance
on a car you’re not currently using or messing up your insurance history by dropping coverage altogether, car storage insurance can help you save money while maintaining some coverage.While car storage insurance can be a good solution for some, it won’t work for others. Let’s go over all you need to know about car storage insurance so you can decide if it’s the right route for you.
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4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversWhat is car storage insurance?
Also called comprehensive-only coverage, car storage insurance is a term used to describe a bare-bones auto insurance policy. This “parked car insurance” is ideal for vehicles that spend significant time in storage or parked without use. It removes
liability insurance
and collision coverage
from your policy.Essentially, car storage insurance strips your insurance policy down to
comprehensive coverage
only. This leaves protection against things like vandalism, theft, and weather damage—all incidents that can happen to a parked car—and removes protection from things like car accidents and other on-the-road hazards.Going with a comprehensive coverage-only policy can also lower your insurance rates by a lot. As much as 80% of your premium can be shaved off with this type of coverage, so if you don’t drive your vehicle for an extended period but don’t want to deal with the higher insurance rates that come after a gap in your insurance history, you may wish to consider this option.
It’s important to note, however, that most states require drivers to keep at least the minimum required liability insurance to remain lawfully licensed. Some insurance companies may require you to have another registered vehicle covered by the state-required minimum insurance before you can drop coverage on your stored car.
Be sure to follow all necessary protocols in your state when dropping insurance coverage.
Can you cancel insurance on a car that’s in storage?
As long as it doesn’t conflict with your state’s insurance and registration requirements, you can cancel insurance on a car that’s in storage. But you may not want to.
The first thing to think about is the lack of protection for your vehicle. While you may think your car is safely tucked away in your locked garage, accidents and unanticipated events still happen—trees still fall, after all! If your vehicle were to sustain any damage in storage from a coverable incident while your insurance was canceled, you’d be left to pay for any repairs out of pocket.
The other factor to consider is the higher insurance costs you may face when you eventually re-up your policy. Insurance companies generally don’t like to see gaps in your insurance history because it makes you seem like a high-risk driver. They’ll use that image of risk to hike up your auto insurance rates and leave you with higher insurance premiums on your next policy.
Canceling insurance on a stored vehicle is an option, but consider asking your current insurance provider about the potential for reducing your coverage instead of outright canceling before you make a decision.
Do you need insurance on a car that doesn’t run?
Whether you need insurance on a non-running car depends on the state you live in. In most cases, cars must be insured if they are registered with the state and parked/stored on a public road.
However, if your vehicle is in storage, isn’t registered with your state, and does not see any driving time, you do not legally need insurance coverage for it. Talk to your insurer to see if they allow temporary suspension of your car insurance coverage if you plan on fixing the car up and taking it back on the roads.
How to find car storage insurance
Since car storage insurance isn’t an official type of car insurance but just specialty comprehensive insurance, you will likely need to call around to gather quotes for it.
Most insurance companies won’t have this insurance option in their online quote-giving databases and will require you to ask for it specifically. You may also have to meet other requirements, like storing your vehicle for at least 30 days, having another vehicle insured to the state’s minimum requirements, or canceling the registration of the vehicle you want to store.
It’s also important to note that you cannot drop down to car storage insurance on leased or financed cars. Since these vehicles aren’t owned, your lender will require you to keep the vehicle fully insured.
What is the best way to store a car?
Vehicle storage can be a great option for preventing damage to your car while you’re not using it, but not all storage options are the same. There are different types of storage facilities and ways to prep your vehicle for long-term storage to thoroughly consider before you drop your car off.
First, determine the type of storage that will work best for you:
- Outside lots are usually gated, monitored, and the least expensive option, but they provide the least amount of protection.
- Covered storage generally implies a canopy or walled-in structure and will offer a bit more protection than outside.
- Indoor storage or even climate-controlled storage units may be the best option if you’re storing a classic vehicle or a particularly valuable one. These will protect your vehicle the most—so they’re the most expensive.
Once you decide on the type of storage you need, read some reviews and ask your friends and family for any recommendations they may have on storage facilities in your area. It’s usually a good idea to ask any facilities you’re considering what their level of security is like and if there are any special services offered to help keep your car in good shape.
You’ll also want to spend some time prepping your vehicle for storage. Add a fuel stabilizer to your tank, change the oil, fill up all fluids, clean the inside and outside of the car, inflate your tires extra to prevent deflation damage, and purchase a high-quality vehicle cover. The more protective measures you take, the higher your chances of returning to a ready-to-go vehicle.
“Because I have a luxury car, I was more interested in finding better coverage than the exact price.Jerryhelped me upgrade my policy, and when my record is cleared next year, I will be using Jerry again to choose an even cheaper plan!” —Paige W.
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FAQs
How do I insure a car I rarely drive?
To insure a car that’s rarely driven, you can inquire about reduced-coverage car storage insurance with your car insurance company. Check your state’s and Department of Motor Vehicle’s insurance laws to make sure you’d be within bounds to drop coverage first, but if it’s an option, car storage insurance can significantly reduce your deductibles.
Can you put storage insurance on a car with a loan?
In most cases, you cannot put storage insurance on a car with a loan. Since the vehicle is not technically owned, the lienholder will require the vehicle to be under full insurance coverage.
