There are a lot of reasons you may have a vehicle that’s not being driven for long periods. Parked car insurance allows you to continue to protect your car from damage while still saving money on car insurance premiums.

Whether you’re headed out of the country on a military deployment or you have a child headed to college who can’t take their car, there are a lot of reasons people can end up with cars that aren’t being regularly driven. While it may be tempting to cancel coverage on a parked car, doing so will leave that asset unprotected—and could subject you to increased

car insurance

rates associated with a lapsed insurance policy. That’s why you should consider parked car insurance instead.

If you’ve never heard of parked car insurance, you’re not alone. Read on to find out what it is, whether you need it, how much it costs, and how to get it. Let’s get started!

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What is parked car insurance?

The short answer: parked car insurance or “storage insurance” is comprehensive-only coverage that provides compensation if your vehicle is stolen or damaged.

Now for the long answer: parked car or storage coverage is a

type of insurance

meant for vehicle owners who park their cars in one place—ideally, in a locked garage—and leave them for long periods of time.

Because your vehicle isn’t being driven, it doesn’t necessarily need the protection offered by liability or collision insurance. That’s why it may be tempting to simply

cancel your car insurance

to save yourself the money you’d normally spend on it. However, if you’ve never seen

how an insurance lapse can impact rates

, trust us—you want to keep it that way.

While your parked car may not need the protection of

full-coverage car insurance

, it does still need protection. If it’s parked on a public road,

collision coverage

is recommended since it’s still susceptible to damage from hit and runs. But even if you keep it in a locked garage, it can potentially be stolen or damaged by vandals, animals, or natural disasters. That’s where parked car insurance comes in.

Parked car insurance only includes

comprehensive coverage

. Insurance products that protect you while you’re driving, like

collision coverage

, are left off the policy.

Comprehensive insurance can help you replace your vehicle if it’s stolen and will also cover the cost of damages caused by vandalism, natural disasters, and other unexpected, non-driving-related events. So essentially, parked car insurance protects your vehicle from the types of damage it can sustain even when it’s “safely” stored away.

MORE:

How to remove your car from long-term storage

Do you need auto insurance for a parked vehicle?

In most states, even if you don’t drive your vehicle regularly, if it’s registered and parked in a public area or on a public road, you must maintain a policy on it that meets the

minimum car insurance required in your state

Unless you live in

New Hampshire

Virginia

, that means you’ll need to carry certain amounts of

liability coverage

to pay for any damages you cause if you’re at fault in an accident. Liability insurance comes in two forms:

Bodily injury liability

coverage will help pay for medical and other injury-related expenses

Property damage liability

covers costs associated with damages to property

Parked car insurance typically doesn’t meet these minimum insurance requirements, which is why it’s not recommended—and usually not available—for vehicles that will be parked in a public place.

But what if your car is not only parked but also parked on private property or in a locked garage? Surely you can skip the insurance for it if that’s the case, right?

We wouldn’t recommend it. Even parked in a locked garage, your vehicle is still susceptible to damage from weather, animals, and vandals, not to mention theft. That’s why we recommend insurance even on vehicles that are rarely driven.

Key Takeaway Even if you never drive your car, a vehicle is too big of an asset to leave unprotected.

MORE: 8 ways to prepare your car for winter driving or storage

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How much are parked car insurance rates?

Because parked car insurance offers limited protection and doesn’t offer property damage coverage or other types of liability coverage, it’s typically much less expensive than other auto insurance policies. In fact, insurance costs for storage coverage are often as much as 80% lower than standard insurance coverage. Opting for a higher deductible can lower your rates even further.

To find out just how cheap parked car insurance coverage can be, contact your insurance agent or compare

car insurance quotes online

MORE:

Tips for safe winter car storage

How to get parked car insurance

Not all insurance companies offer parked car insurance, so you’ll need to call your insurance provider for a free quote or do some shopping to find a policy. Your provider will usually require you to keep the vehicle in storage for at least 30 days.

But that’s not all—here are some additional requirements your insurer will likely have:

You must own the vehicle outright: You won’t be able to get a storage coverage policy on a financed or leased vehicle. If you

lease a car

or you’re still paying on a

car loan

, your lender owns the vehicle and will usually require you to maintain not only your state’s minimum insurance but also additional types of coverage, like collision and comprehensive insurance.

You may be required to have another fully insured vehicle: Before allowing you to carry parked car coverage on one vehicle, many car insurance companies will require that you also carry the state-mandated minimum insurance on at least one other vehicle.

You must cancel your vehicle registration: Most states track

vehicle registration

requirements, so if the Department of Motor Vehicles (DMV) is notified you’ve dropped your coverage below the required minimums on a registered vehicle, you could be looking at fines or even license suspension.

While a rarely used vehicle isn’t at the same level of risk for damage as a daily driver, you should still insure it. Parked car insurance is inexpensive, and it can protect you from significant financial losses you could face if your car is damaged while in storage. Whether you opt for storage coverage to protect your parked car or not, it’s important that you maintain a policy of some kind to avoid the higher rates associated with a lapse in coverage.

Key Takeaway Parked car insurance offers a lot of protection for very little cost.

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FAQs

What insurance do you need for a car you rarely drive?

If you drive your car at all, you must maintain coverage that at least meets the minimum insurance required by your state. However, if you leave your car parked for long periods (stretches of 30 days or more), you may be able to drop your coverage to a parked car insurance policy.

When do you need parked car insurance?

If you have a vehicle that is not going to be driven for 30 days or more, you should consider a parked car insurance policy.

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