Haris Ashley
Auto storage insurance, also known as parked car insurance, is an interim solution for a car that won't be in use for an extended period of time. It is a way to suspend your auto policy if you won't be driving or using your vehicle for a period of time. This type of insurance covers damage caused by animals, weather events, theft, vandalism, fire, and falling objects.
| Characteristics | Values |
|---|---|
| What is auto storage insurance? | Reduced coverage or a discount applied to your car insurance policy for vehicles not being driven. |
| Is auto storage insurance a specific type of insurance policy? | No, it is not a specific type of insurance policy. |
| What does auto storage insurance cover? | Damage from non-collision incidents, like vandalism, theft and weather damage. |
| What is not covered under auto storage insurance? | Collision coverage is dropped under auto storage insurance. |
| Is auto storage insurance mandatory? | No, it is not mandatory. However, it is recommended to avoid a lapse in coverage. |
| How much does auto storage insurance cost? | The cost varies depending on factors such as claims history, selected coverage types, location, and personal rating factors. The national average cost of state minimum coverage is $622 per year, while full coverage policies average $2,014 per year. |
What You'll Learn
Comprehensive coverage
Car storage insurance is typically referred to as "comprehensive-only coverage". This type of insurance covers anything that can happen to your vehicle while it's stored or parked. Comprehensive coverage helps pay for repair or replacement costs that result from theft, hail, fire, or other mishaps that damage a vehicle not in use.
It's important to note that car storage insurance doesn't exist as a separate, dedicated insurance type. Instead, it refers to minimum coverage for a vehicle in storage. This means that you can usually drop or reduce coverages that protect against events that can occur while driving.
Some insurance companies may require you to keep your vehicle in storage for a minimum amount of time, such as 30 days, before they approve your request for comprehensive-only coverage. Additionally, you should avoid driving your vehicle even for a short distance while your liability coverage is suspended. If you get involved in an accident or damage someone else's property while driving without the appropriate coverage, you won't be covered.
While car storage insurance can help lower your rates significantly (sometimes by as much as 80%), it's important to be aware of the potential downside related to state vehicle registration laws. 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).
In conclusion, comprehensive-only coverage is an excellent option for those who won't be using their vehicles for extended periods. It provides peace of mind by offering protection against various damages while helping reduce insurance costs. However, it's important to be aware of the limitations and requirements of this coverage and take the necessary steps to comply with state regulations.
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Collision coverage
When you have collision coverage, your insurance company will pay for repairs to your vehicle, minus your deductible. This coverage is typically quite broad and includes accidents with other vehicles, objects, and even potholes. It is important to note that collision coverage does not include damage to other people's property or vehicles; this is covered by liability insurance.
While collision coverage is a valuable protection, it is not always necessary. If you are storing your car and will not be driving it, you may consider removing this coverage to save on insurance costs. This is because the risk of collision is significantly reduced when the car is not in use. However, it is important to note that if you decide to drive your stored vehicle, even a short distance, without collision coverage, you will not be covered in the event of an accident.
In some cases, lenders or leasing companies may require you to maintain collision coverage as a condition of your loan or lease agreement. This is to protect their investment in the vehicle. Therefore, it is essential to check with your lender or leasing company before removing this type of coverage.
Additionally, state laws may require you to maintain a minimum level of collision coverage. Excluding New Hampshire, all states mandate that drivers carry at least minimum liability insurance, which includes collision coverage. If you decide to remove collision coverage while your car is in storage, you may need to cancel your registration and remove the vehicle from public roads to comply with state laws.
In summary, collision coverage is an important protection for drivers, but it can be removed in certain circumstances, such as when storing a vehicle, to reduce insurance costs. However, it is crucial to consider state laws, lender requirements, and the potential risks of driving without this coverage.
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Liabilities and risks
Firstly, it is important to note that a car in storage is still at risk of damage. This could be from a natural disaster, such as a fire or flood, or from vandalism, theft or weather damage. Damage could also occur from falling objects, such as tree branches, or from rodents chewing through wiring. If comprehensive coverage is not maintained, the owner will be liable for the full cost of any repairs.
Secondly, there is a risk of a lapse in coverage. Cancelling insurance altogether could result in higher premiums when the owner decides to reinstate their policy in the future. This is because insurance providers may view the lapse in coverage as a risk.
Thirdly, there are legal requirements to consider. In most states, drivers are required to carry at least minimum liability insurance. If this is dropped, the owner risks license and registration suspension.
Finally, if the car is leased or financed, the lender will likely require the owner to maintain a full-coverage policy, including comprehensive and collision coverage. Failure to do so could result in a breach of contract.
In summary, the main liabilities and risks of auto storage insurance are the potential costs of repairs if comprehensive coverage is not maintained, the risk of higher premiums in the future due to a lapse in coverage, the legal requirement to maintain minimum liability insurance in most states, and the potential breach of contract with a lender if full coverage is not maintained.
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Cost of auto storage insurance
The cost of auto storage insurance will vary depending on a number of factors, including your claims history, selected coverage types, and other personal rating factors.
If you choose to maintain only the state minimum coverage requirements, the national average cost of this coverage is $622 per year. Full-coverage policies, including collision and comprehensive coverage, average $2,014 per year, but your insurer may allow you to purchase just comprehensive coverage as part of a storage package.
Comprehensive-only coverage, also known as parked-car insurance, is the most common type of auto storage insurance. It covers any event that can damage your car while it's sitting still, such as theft, vandalism, building collapse, and fire. It is important to note that comprehensive coverage does not include liability coverage, so you will not be able to park on a public road and will need to store your vehicle in a garage, driveway, or private storage unit.
Car storage insurance can lower your rates by as much as 80%, but it is important to be aware of the potential downsides. In addition to the limitations on where you can park your vehicle, you will not be legally allowed to drive the car, even to move it to a different storage location. If you need to change your car's storage location, you will need to reinstate liability coverage to be road-ready.
It is also worth noting that some states may require you to cancel your vehicle registration if you drop liability coverage. Excluding New Hampshire, all states require drivers to carry at least minimum liability insurance as part of their car insurance policies. If you drop this important insurance coverage, you risk license and registration suspension.
To be eligible for car storage insurance, you may need to take certain steps, such as disconnecting the vehicle's battery, storing the vehicle in a locked garage, or storing it at a gated facility. Additionally, most insurance companies will require your car to be in storage for a minimum of 30 days to qualify for auto storage insurance.
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Preparing your car for storage
- Choose a suitable storage location: Opt for a clean, dry, and well-ventilated garage or storage facility to prevent rust and corrosion. Consider the climate and try to maintain a temperature-controlled environment, especially in cold regions, to keep the vehicle and its components above the freezing point.
- Fill up the gas tank and add a fuel stabilizer: Prevent moisture accumulation and seal drying by filling the tank. A fuel stabilizer will also prevent the gas from deteriorating for up to 12 months.
- Change the engine oil: Used oil can damage your engine, so it's best to change it, especially if you plan to store the vehicle for more than 30 days.
- Maintain battery charge: Either ask someone to start the car and drive it occasionally or disconnect the negative battery cable. Alternatively, invest in a battery tender or trickle charger to keep the battery charged while in storage.
- Clean and protect the exterior: Wash your car and consider applying wax to protect the paint. Use an all-weather car cover if storing outdoors to shield it from the elements.
- Prepare the interior: Vacuum and thoroughly clean the interior, removing any perishable items that could attract pests or cause odours. Use silica gel packs to prevent mould and cover leather or vegan leather trim to prevent cracking and fading.
- Inflate tires and use jack stands: Ensure your tires are inflated to the recommended pressure. Consider placing the car on jack stands to prevent flat spots and tire deformation due to prolonged weight bearing.
- Disengage the parking brake: Avoid using the parking brake for extended storage as it may fuse with the rotors. Use tire chocks or wheel wedges instead to keep the vehicle securely parked.
- Protect against pests: Seal any potential entry points for rodents, such as the exhaust pipe and air intakes, with steel wool, rags, or aluminium foil. Place mothballs or cotton swabs dipped in peppermint oil to deter mice.
- Wrap the wiper blades: Prevent wiper blades from sticking to the windshield by wrapping them in plastic, especially in cold storage locations.
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Frequently asked questions
Auto storage insurance is not a specific type of insurance policy. It is reduced coverage or a discount applied to your car insurance policy for vehicles not being driven.
Auto storage insurance covers damage from non-collision incidents, like vandalism, theft, and weather damage.
No, you don't need insurance coverage for a car that's not being driven and is in storage. However, if the vehicle gets stolen, vandalized, or damaged, you'll be responsible for any resulting expenses if you don't carry insurance.
The cost of auto storage insurance depends on factors such as the make, model, and mileage of the vehicle, the driver's record, insurance history, and location. The national average cost of state minimum coverage is $622 per year, while full coverage policies average $2,014 per year.
Contact your insurance agent to discuss your options. They will be able to tell you if you can put your vehicle in storage status and what that means for your policy.
