Do I Need Insurance For a Car That’s in Storage?

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Without insurance, you will also be solely responsible for anything that might happen to the vehicle during its time in storage.

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Maybe you’re putting your car in storage for the summer while you spend the summer in your vacation home, or your teen driver is heading to college soon and won’t need it.

There are a number of reasons why you might not need to use your car for a time, and why you might consider dropping your insurance while you’re gone, but is it a smart thing to do?

You may see short-term savings by not paying a monthly insurance premium for your stored car, but you should consider the drawbacks of canceling a policy and review options with your agent or insurance company to reduce your coverage instead!

Drawbacks of Canceling Coverage

Canceling your coverage creates a gap in your insurance history that may put you in a higher risk category for your insurer.  That may mean a higher premium when you decide to reinstate your policy down the road.

Without insurance, you will also be solely responsible for anything that might happen to the vehicle during its time in storage.  If a tree were to fall on the garage or some other mishap were to take place, you’d be paying out of pocket to repair the car.

Another drawback is the conditions on the car itself; a lease or financed vehicle, for instance, might require insurance as a condition of your loan, regardless of whether it is being driven or not.

Car Storage Insurance Options

If you have a car that will be kept in storage for 30 days or more, you may be able to suspend your liability and collision coverages, which are both driving-related and, instead, maintain only comprehensive coverage on the car in storage. 

Comprehensive coverage helps pay to repair vehicle damage from things like theft, fire or hail — scenarios that are still possible while your car is in storage.

You may notice a lower premium if you pared your policy down like this, because you'd only be paying for a single coverage.  In addition, you'd prevent yourself from having a lapse in coverage that could result in higher costs in the future.

Keep in mind, however, that if you are financing the vehicle in storage, your auto lender may require both collision and comprehensive coverage until the loan is paid off.

Some insurance companies may require your vehicle to be in storage for a minimum number of days before they will approve your request for the reduced coverage (for example, a 30-day minimum).  Don't take your car out even for a short ride while the liability coverage on your policy is suspended, because you wouldn't be covered if you had an accident or damaged someone's property while you were driving.

Keep the car snug in its storage spot, and then simply set a reminder to revert to your former coverage levels when you expect to need the vehicle again!

A good auto insurance policy not only protects your vehicle, it protects your lifestyle.  We call that living assured – where stability, devotion and personalized coverage meet you where you need us!  If you’re planning on storing a car, now or later, don’t leave yourself unprotected!  Contact an independent agent today to discuss your options for your new or existing Preferred Mutual auto policy!