Do You Need Car Insurance if Your Car Doesn’t Work?
A run-down car doesn’t usually require insurance as long as it’s not registered. You may still want some coverage, though.
Written by Shannon Fitzgerald
Reviewed by Pat Roache
If you own a car that doesn’t work, you usually aren’t legally required to maintain auto insurance coverage as long as it isn’t registered. However, you may still want to protect a parked car against vandalism and weather-related damages with
comprehensive coverage
. When you register a vehicle at your state’s Department of Motor Vehicles, you’re essentially securing the legal right to operate your car on the road. As such, most states require any registered vehicle to meet certain insurance minimums to protect against damages in the event of an at-fault accident.
But what happens if you’ve got a fixer-upper in your garage that is in no state to drive just yet? Let’s take a look at your
car insurance
options.Compare insurance quotes from 50+ carriers with Jerry in under 45 seconds
Compare insurance quotes from 50+ carriers with Jerry in under 45 seconds
4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversDo you need car insurance for a car that doesn’t work?
Whether or not your broken-down car needs insurance coverage depends on whether your car is registered and whether your state requires car insurance for registered vehicles. In most cases, state laws mandate that any registered vehicle must have certain
liability coverage
that meets specified minimums. For example, drivers of any registered vehicle in
Georgia
must prove their financial responsibility by purchasing car insurance with at least $25,000 per person and $50,000 per incident of bodily injury liability
, and $25,000 per incident of property damage liability
insurance. Aside from state requirements, you may still want to keep at least comprehensive coverage on your broken-down vehicle regardless. Even though you aren’t encountering risks on the road, your car is still at risk of weather and vandalism damage while parked in your driveway.
Note: if you’re still paying off a
car loan
on your run-down vehicle, you’ll need to check with your lender before canceling any coverage. Some lenders require you to hold comprehensive and collision coverage
minimums on top of your state’s liability minimums, regardless of whether your car is on the road or permanently in a garage. What if you have a registered vehicle that doesn’t work?
If you aren’t planning on taking that parked car on the road any time soon, you may want to cancel your car’s
vehicle registration
to avoid paying for insurance coverage you don’t need. Just make sure that you cancel your registration before you cancel your car insurance coverage. Doing the opposite will create an insurance lapse
, which will increase your insurance rates for any vehicle moving forward. If you’re frequently using rental cars or borrowing someone else’s car while your car is in storage, you may also want to consider purchasing
non-owner car insurance
. Cheaper than standard insurance, non-owner insurance gives you liability coverage in any car your drive—no matter whose name is on the title. How to lower your insurance costs for a broken-down car
While your unregistered, broken-down car may not always require an auto insurance policy, that doesn’t mean that it won’t benefit from one. After all, your vehicle can still encounter damages off the road—such as vandalism, theft, and weather-related destruction.
So how do you find
cheap car insurance quotes
to cover a vehicle you’re not actively using? Here are some options.Only purchase comprehensive insurance
Some insurance providers allow you to purchase only comprehensive coverage on vehicles that aren’t running. Also known as “storage insurance” this type of policy drops liability and collision coverages, leaving you with a comprehensive-only plan.
What does comprehensive car insurance cover? Basically, anything that doesn’t involve a collision. Generally, this includes falling limbs from trees,
hail damage
, flooding, vandalism, and car theft
—all of which could still impact your run-down vehicle. Not all auto insurance companies offer storage insurance, and those that do may impose limits. For example, you typically must keep your vehicle in storage for at least 30 days before your request for comprehensive-only coverage will be approved.
If your broken-down car is still registered, you won’t be able to purchase just comprehensive coverage in most cases either. While you can avoid certain extra coverages like
MedPay
and uninsured motorist coverage
if they aren’t required in your state, you will almost always have to have basic liability insurance as long as you’ve got a legal license plate on your car. Are you overpaying for your car insurance?
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Suspend your car insurance policy
Depending on your state and insurance company, you may also be able to suspend some or all of your auto insurance coverage for a limited period of time.
Again, not all insurers allow policyholders to suspend their plans, so you’ll need to contact your insurance agent to see if this is an option for you. Some states require you to file an Affidavit of non-use before suspending car insurance on a vehicle, too—so be sure to check in with your DMV.
Adjust your deductible
If your run-down vehicle isn’t going to be garaged long enough to make canceling its registration worth it, you can always save some money by increasing your deductibles. Doing so will lower your premiums in exchange for paying more to cover the costs of collision or comprehensive claims.
Since you won’t be on the road for a while anyway, you won’t have to worry about that risk when it comes to collision coverage (if you decide or need to keep this insurance). You will, however, need to be aware that any weather or non-collision damages will cost you more in repairs.
Shop around
Whether you want to stick with
full coverage insurance
on your broken-down car or cut down to a comprehensive-only plan, it’s always a good idea to compare auto insurance rates from at least three insurers to ensure you have the best price possible. Just as different factors influence your insurance rates—from
getting a new car
to having a DUI
on your driving record—different insurers affect your rates, too. You may find you’re eligible for better discounts with certain providers, or you may find your current insurer has hiked up their rates over time. You don’t have to keep all of your policies under the same insurer either. Though you may get a loyalty discount by maintaining a life insurance and
renters insurance
policy through Progressive
, perhaps you’ll save more on an auto insurance policy with Allstate
instead (or vice versa!). Bottom line: take a look at other insurance companies if you want to save on car insurance for your run-down car. Not only could you find better rates elsewhere, but other insurers may offer the car storage insurance options you need.
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FAQs
Should you cancel car insurance for a vehicle that doesn’t run?
Not necessarily. If your run-down car is registered with the DMV, you will need to maintain state liability insurance minimums until your vehicle is no longer registered. Your lender may also have collision and comprehensive coverage minimums if you still owe money on your car’s loan.
Even if your vehicle isn’t registered or under a loan contract, you may still want to keep it protected from vandalism and weather with comprehensive coverage.
Do you need collision insurance on a broken-down car?
Not always. If your broken-down vehicle is registered, you will typically only need to meet your state’s minimum liability insurance coverage. However, some lenders may require you to maintain collision and comprehensive insurance minimums regardless of your vehicle’s working status—so check with your lender before canceling any coverages.
