Sitting Vehicle Insurance: Worth It?

Keeping insurance on a sitting vehicle is a personal choice, but there are several reasons why you may want to consider it. Firstly, legally, you don't need insurance coverage for a car that's not being driven and is in storage. However, if something happens to your vehicle, such as theft, vandalism, or damage, you will be responsible for any resulting expenses if you don't have insurance. Comprehensive coverage can protect your vehicle from these risks, even when it's not being driven. Additionally, if you cancel your insurance, you may experience a lapse in coverage, which can result in higher premiums when you purchase insurance in the future. Therefore, it's recommended to maintain at least comprehensive coverage for a sitting vehicle to protect yourself from financial losses and avoid gaps in your insurance history.

Comprehensive-only coverage

If you have a vehicle that is sitting unused in storage, you may want to consider comprehensive-only coverage. This is an optional coverage that protects your vehicle from damage caused by non-collision events outside of your control. This includes theft, vandalism, glass and windshield damage, fire, accidents with animals, weather, or other acts of nature.

Comprehensive coverage is often required by lenders if you are leasing or financing your vehicle. If you own your vehicle outright, you can decide whether to keep this coverage. It may be worth keeping comprehensive coverage if your vehicle has a high cash value or if you cannot afford to repair or replace your vehicle out of pocket.

If you cancel your comprehensive coverage, you may pay a higher rate for car insurance in the future when you purchase coverage again. It may be more cost-effective to keep the coverage you already have or consider usage-based insurance instead of cancelling your policy.

To cancel comprehensive coverage, you will need to check your state's requirements for cars in storage. You may need to fill out an affidavit of non-use and turn in your plates, and you will need to store the vehicle in a locked facility.

Storage coverage

If you have a vehicle that you only drive at certain times of the year, or if you simply won't be driving for a while, storage coverage can be a good option. It allows you to suspend" your auto policy while maintaining insurance history, which can help you avoid higher rates due to a lapse in coverage.

However, it's important to note that state and insurer-specific regulations will apply, and vehicles still being paid off may require additional coverages depending on loan requirements. Excluding New Hampshire, all states require drivers to carry at least minimum liability insurance. If you drop this coverage, you risk license and registration suspension. To avoid this, you can cancel your registration, remove the vehicle from public roads, and follow the necessary protocols required by your state and Department of Motor Vehicles (DMV).

Your insurance company might require you to insure another vehicle to meet your state's minimum liability requirements. It's also worth noting that if you're still paying on your car loan, your lender might require you to have both collision and comprehensive coverage for the life of the loan.

Before making any changes to your policy, be sure to do your research and talk to your agent to ensure you have appropriate insurance coverage.

Liability coverage

If you're not driving your car, you may be wondering whether you should keep it insured. Legally, you don't need insurance coverage for a car that's not being driven and is in storage. However, maintaining at least some level of coverage can protect your vehicle from potential expenses.

BI coverage helps pay for bodily injuries that you are legally liable for. This means that if your actions caused injury to another person and you are found legally responsible, your BI coverage will assist with the resulting costs. It can cover defence and court costs if you are sued as a result of the incident.

On the other hand, PD coverage comes into play when you are responsible for damaging someone else's property, such as another car, a house, or even a tree. PD coverage helps pay for the repairs to that property and the loss of use of the damaged item. Like BI coverage, PD coverage can also assist with defence and court costs if you are sued.

It's important to note that liability coverage does not cover repairs to your vehicle or your own injuries in the event of an accident. For that, you would need separate coverages, such as collision coverage, comprehensive coverage, or medical payments coverage.

When considering liability coverage for a sitting vehicle, it's essential to keep a few things in mind. Firstly, if you cancel your car insurance, you may experience a lapse in coverage, which can result in higher premiums when you purchase insurance in the future. Therefore, if you plan to get another vehicle or drive the sitting vehicle again, it's advisable to maintain at least some level of coverage.

Additionally, if your vehicle is parked on a public road, you generally need to have liability insurance. This is because your car could still be involved in an accident or cause damage to someone else's property, even if it's not being driven.

In summary, while liability coverage is not legally required for a sitting vehicle, it can provide financial protection in case of unexpected events. Maintaining some level of coverage can help prevent a lapse in coverage and keep your premiums lower. If you plan to drive the vehicle again or keep it on a public road, liability coverage is particularly important. Be sure to check your state's requirements and consult with your insurance provider to make an informed decision.

Collision coverage

Firstly, collision coverage protects your vehicle in the event of an accident, whether it is your fault or not. If your car is involved in a collision, this coverage can help pay for the repairs or replacement of your vehicle, ensuring you don't have to bear the full financial burden. This is particularly relevant if your vehicle is leased or financed, as your lender will likely require comprehensive and collision coverage to protect their investment.

Secondly, maintaining collision coverage can help you avoid a lapse in coverage, which can result in higher premiums in the future. If you cancel your collision coverage and decide to drive your vehicle again in the future, you may face increased insurance rates due to the gap in your insurance history. Keeping collision coverage, even at a reduced level, can help mitigate this issue.

Additionally, collision coverage can provide peace of mind, knowing that your vehicle is protected in the event of an accident. This is especially beneficial if your vehicle is stored in an area where accidents or collisions are more likely to occur, such as a busy street or a garage with multiple vehicles.

When considering insurance for a sitting vehicle, it's important to weigh the benefits of maintaining collision coverage against the cost. While you may be able to reduce your overall insurance costs by dropping collision coverage, you need to consider the potential risks and expenses associated with accidents or collisions.

In conclusion, while collision coverage is not legally required for a sitting vehicle, it offers valuable protection and can help you avoid higher premiums in the future. Weigh your options carefully and consider consulting with your insurance agent to make an informed decision that best suits your needs and situation.

Uninsured motorist coverage

While you are not legally required to maintain insurance coverage for a vehicle that is not being driven and is in storage, it is still a good idea to keep it protected in case of damage from vandalism, animals, or inclement weather. If you cancel your car insurance, you will experience a lapse in coverage, which can result in higher premiums when you buy car insurance in the future.

If you decide to keep your vehicle insured while it is not being used, you should consider uninsured motorist coverage. Uninsured motorist coverage protects you if you are hit by a driver with no auto insurance or insufficient insurance to cover the damages. Underinsured motorist coverage, which is usually offered alongside uninsured motorist coverage, is similar but applies when the at-fault driver does not have enough insurance to cover your damages or medical bills. Both coverages are mandatory in many states and highly recommended for all drivers, as nearly 13% of drivers countrywide do not have auto insurance. Without this coverage, you could be left paying for medical bills or vehicle repairs out of pocket.

Uninsured/underinsured motorist insurance covers your injuries, your passengers' injuries, and damage to your vehicle. Depending on your state, it may be separate, combined, or consist of up to four coverages:

• Uninsured motorist bodily injury (UMBI) may pay medical bills for you and your passengers.
• Uninsured motorist property damage (UMPD) may pay for damage to your vehicle.
• Underinsured motorist bodily injury (UIMBI) may pay medical bills for you and your passengers if the at-fault driver's coverage is insufficient.
• Underinsured motorist property damage (UIMPD) may pay for damage to your vehicle if the at-fault driver's coverage is insufficient.

In some states, a deductible may be required for UMPD/UIMPD, but UMBI/UIMBI generally does not include a deductible. You can choose the insurance limits of your coverage, but for UMBI and UIMBI, you should consider matching the amount of your liability coverage. For UMPD, you can select a limit that mirrors the value of your vehicle.

Frequently asked questions