What To Know About Car Storage Insurance (2022 Guide)

No matter how long you store a vehicle, it’s important to keep it insured. In this way, your car is financially protected in the event of damage. You also avoid penalties for coverage gaps from your state or insurance company.

In this guide, you’ll learn how parking insurance works, when you need it, and how to avoid higher premiums when parking your car long-term. We at the Home Media Reviews team checked that out best car insurance companies, and we recommend two providers that offer auto storage insurance.

Insurance companies do not offer policies specifically for cars in storage. However, comprehensive coverage that protects your car in most non-moving and non-driving situations can act as vehicle storage insurance. This type of coverage is usually part of a fully comprehensive car insurance policy liability insurance and collision protection.

If you’re storing a car, it’s a good idea to have some form of auto insurance coverage. Even if you don’t actively drive your car, it is still at risk of damage. Dropping coverage makes it harder to pay for repairs your car may need once it’s taken out of storage.

Here are some common problems you may encounter while your car is in storage:

• Theft
• vandalism
• Natural disasters such as floods, fires and weather events
• Damage to cables or straps caused by rodent activity
• Falling objects such as branches or other objects in a storage facility

A comprehensive insurance The policy will typically cover all of the above damage, making it ideal coverage for cars in long-term storage. If your car is damaged by problems covered by your policy, your insurer will offer a payout to cover repairs up to the actual cash value of your vehicle minus your deductible.

Disadvantages of no liability insurance

If you’re dropping liability insurance to save money to cover an unused car, there are a few downsides you need to be aware of. You cannot park on a public street, so the car must be stored in a garage, driveway or private storage room.

You are also unable to legally drive the car, not even to take it to another storage facility, as you likely do not meet your state’s legal insurance requirements for operating a vehicle. If you need to change your car’s storage location, you’ll need to restore liability insurance to be roadworthy.

If you need to store your car for an extended period of time, it is best to contact your provider to discuss your insurance options. It may be possible to reduce your insurance coverage to fully comprehensive insurance only. Some insurance companies only offer comprehensive coverage for cars parked for 30 days or more.

However, keep in mind that if your vehicle is leased or financed, your lender will likely still require you to have collision damage waiver.

There is no standard cost for comprehensive car insurance as insurance providers consider a number of factors to determine rates. These factors include:

• age of the driver
• Make, model and mileage of the vehicle
• The driver’s file, including tickets
• Insurance history such as B. Previous claims
• Creditworthiness of the driver (depending on the state)
• coverage level
• deductible

Location is also a very important consideration when companies determine insurance costs. Each state has its own minimum coverage requirements. Depending on where you live, you may not be able to get comprehensive insurance. You may need to take out additional insurance, e.g uninsured driver insurance.

According to the latest study on insurance costs from the National Association of Insurance Commissionersdrivers in the United States paid an average annual comprehensive insurance premium of approximately $172 in 2019.

There are precautions you can take to avoid possible damage when storing your car for an extended period of time. These steps can also help you avoid filing a claim and rising insurance premiums.