Car storage insurance is a specialized type of auto insurance coverage that is designed to protect vehicles that are not actively being driven and are stored for an extended period.
This insurance ensures that your car remains covered against specific unpredictable risks, such as fire, theft, or weather-related damage, while it is in storage.
Whether you’re preserving a classic car, temporarily unable to drive, or keeping a vehicle safe during a long trip, this insurance provides peace of mind by safeguarding your investment.
Many drivers mistakenly believe that their vehicle doesn’t require any insurance while it’s in storage. However, most states mandate some form of continuous insurance coverage unless the car’s registration is officially suspended.
Additionally, unforeseen events, like vandalism or natural disasters, can still pose a threat to stored vehicle.
Why Consider Car Storage Insurance?
Choosing this insurance offers a range of benefits, particularly for those who do not plan to drive their vehicle for a significant amount of time. Here are some reasons why you should go for this insurance:
Meets Legal Requirements
Some states require vehicles to carry at least minimum liability coverage even when not in use. Hence, the insurance helps you stay compliant with these regulations.
Protects Against Unforeseen Risks
Even when a car is stored in a secure location, it remains vulnerable to risks like fire, theft, flooding, or other natural disasters. Car storage insurance ensures that you’re financially protected against these events.
Avoids Policy Lapses
Canceling your standard auto insurance while storing your car may lead to a gap in coverage. This can result in higher premiums when you reinstate your policy. Car storage insurance allows you to maintain continuous coverage.
Saves Money
If you’re not driving your vehicle, you can reduce your insurance costs by switching to a storage policy. These policies are typically more affordable than standard auto insurance since they exclude coverage for on-road incidents.
What Does This Insurance Cover?
Car storage insurance usually provides coverage for specific risks associated with storing a vehicle. Below is a breakdown of the most common types of coverage included:
Comprehensive Coverage
This coverage protects against non-collision-related incidents, such as theft, fire, vandalism, and natural disasters. What’s more, this is the core component of this insurance and offers peace of mind for various unforeseen events.
Uninsured/Underinsured Motorist Coverage
This is an optional option that offers protection in case of damage caused by an uninsured driver while your vehicle is parked or stored.
Liability Coverage
Some policies may include liability coverage if required by state law, even if the car is not being driven. Additionally, this protects you from financial responsibility if your stored vehicle causes damage or injury.
Personal Belongings Coverage
Some policies may cover personal items stored in the vehicle, though this varies by provider.
How To Choose The Right Car Storage Insurance
Selecting the right car storage insurance requires you making careful consideration of your needs and circumstances. Here are the steps to help you make better decisions:
Assess Your Storage Conditions
Evaluate where your vehicle will be stored. A secure garage or storage facility may reduce your premium, while outdoor storage might require additional coverage.
Determine Coverage Needs
Next, you must consider the risks your car is likely to face, such as weather-related damage or theft. With that done, you can choose a policy that addresses these concerns.
Compare Providers
Research multiple insurance providers to find the best rates and coverage options. Also, look for insurers that specialize in car storage insurance or offer customizable policies.
Ask About Discounts
Some providers offer discounts for vehicles stored in secure locations or for policyholders who bundle car storage insurance with other policies.
Review Policy Details
Lastly, you must ensure you understand what is included in your policy, including any exclusions or optional add-ons, to avoid surprises.
Providers Offering Car Storage Insurance
Several insurance companies offer this insurance or allow policyholders to adjust their existing coverage for stored vehicles. Here are some popular providers:
Geico
Geico offers comprehensive-only coverage options for stored vehicles. What’s more, their policy makes it a budget-friendly choice for long-term storage needs.
Allstate
Allstate provides storage-specific insurance solutions, including coverage for classic cars and seasonal vehicles.
State Farm
State Farm provides flexible policies that can be tailored to include storage-specific coverage, such as comprehensive protection.
USAA
USAA caters to military personnel and their families, offering affordable storage insurance for vehicles kept on bases or in secure locations.
Progressive
Progressive allows policyholders to adjust their coverage and offers discounts for vehicles stored in secure facilities.
Frequently Asked Questions
Do I Need Car Storage Insurance If My Car Is Parked In My Garage?
Yes, this insurance is recommended even if your car is stored in a private garage. Risks such as fire, theft, or natural disasters can still occur, and comprehensive coverage protects against these.
Can I Cancel My Standard Auto Insurance While My Car Is In Storage?
While canceling your policy may seem cost-effective, it can lead to a lapse in coverage, which might increase your premiums in the future. Switching to car storage insurance is a better alternative.
How Much Does Car Storage Insurance Cost?
The cost varies depending on factors like the vehicle’s value, storage location, and the level of coverage chosen. On average, it is more affordable than standard auto insurance.