Vehicle Storage Insurance: What's Covered?

Vehicle storage insurance is not a specific type of insurance policy. Instead, it's a way to reduce coverage or get a discount applied to your car insurance policy for vehicles that are not being driven. If you don't plan on driving your car for an extended period, auto storage insurance involves removing coverage from your policy or placing your vehicle in a storage status with your insurer. This can help keep your car insurance premiums low while avoiding a lapse in coverage.

Vehicle storage insurance is not a specific policy

Vehicle 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 in some cases. If you do not plan on driving your car for an extended period, vehicle storage insurance involves removing coverage from your policy or placing your vehicle in a storage status with your insurer. This can help keep your car insurance premiums low while avoiding a lapse in coverage while your vehicle is not being used.

Your best option is to speak with an insurance agent, who can advise you on whether you can put your vehicle in storage status, what that means for your policy, and how to meet your state's and lender's requirements. To be eligible for vehicle storage insurance, you may need to do the following:

• Disconnect the vehicle's battery
• Store the vehicle in a locked garage
• Store the vehicle at a gated facility

Most insurance companies allow you to make changes to your policy at any time, meaning you can add and remove coverage options during your term or place your vehicle in storage if it is eligible to do so with your insurer.

Vehicle storage coverage may be beneficial in a number of scenarios, such as when you have inherited a car that you do not need, are travelling for an extended period, or do not plan to drive the car for part of the year. It is important to note that vehicle storage insurance is reserved for when your vehicle will not be used for an extended period, which can differ by insurance company. If you need to use your vehicle, or anyone else drives it while you are away, it will probably not qualify for storage.

While your vehicle remains in storage, you will typically maintain some coverage, including comprehensive coverage, which covers damage from non-collision incidents like vandalism, theft, and weather damage. Depending on state laws, you may also have to maintain the minimum liability limits mandated by your state. Insurance companies will not sell you an insurance policy that does not meet state minimum requirements, so if you want comprehensive coverage, you will likely have to purchase liability coverage too.

It's reduced coverage or a discount applied to your car insurance policy

Vehicle storage insurance is not a specific type of insurance policy. Instead, it is reduced coverage or a discount applied to your car insurance policy for vehicles not being driven. This type of insurance is ideal for those who do not plan on driving their car for an extended period of time.

Vehicle storage insurance involves removing coverage from your policy or placing your vehicle in a storage status with your insurer. This can help keep your car insurance premiums low while avoiding a lapse in coverage.

If you opt for vehicle storage insurance, you will typically maintain some coverage, including comprehensive coverage, which protects your car in most non-moving, non-driving instances. Comprehensive coverage covers damage from non-collision incidents, like vandalism, theft, and weather damage.

The cost of vehicle storage insurance will depend on various factors, including your claims history, selected coverage types, and personal factors. Removing coverage types like collision insurance will lower your premium.

It is important to note that vehicle storage insurance is not the same as pausing or suspending your auto coverage. Cancelling your coverage altogether can lead to increased insurance premiums when you search for a new policy, as insurance providers view a lapse in coverage as a risk.

Instead of cancelling your policy, consider reducing your coverage to the minimum required or opting for a cheaper car storage policy if you can safely store your vehicle in a garage.

By maintaining continuous coverage, even at a reduced level, you can avoid higher insurance costs in the future.

It's for vehicles not being driven

Vehicle storage insurance is for vehicles that are not being driven and are in storage. It is not a specific type of insurance policy but rather a reduction in coverage or a discount applied to your existing car insurance policy. This type of insurance is ideal if you don't plan on driving your car for an extended period of time.

Vehicle storage insurance involves removing coverage from your policy or placing your vehicle in a storage status with your insurer. This can help keep your car insurance premiums low while avoiding a lapse in coverage. Most insurance companies allow you to make changes to your policy at any time, so you can add and remove coverage options or place your vehicle in storage as needed.

Car storage coverage is beneficial in several scenarios, such as when you're travelling for an extended period, when your vehicle is in need of repair, or when you're a member of the military and are being deployed. It's important to note that car storage insurance is reserved for when your vehicle will not be used for an extended period, which can vary by insurance company.

When your vehicle is in storage, you typically maintain some coverage, including comprehensive coverage, which protects your vehicle from damage caused by non-collision incidents like vandalism, theft, and weather damage. Comprehensive coverage is the only type of car insurance coverage you need if your vehicle is not being driven, as it covers any event that can damage your car while it's sitting still, such as theft, vandalism, building collapse, and fire.

By keeping your vehicle insured, even to a lesser degree, while it's in storage, you protect your car against threats beyond driving accidents. Additionally, having some form of car insurance coverage while your car is in storage helps you avoid a lapse in coverage, which could lead to higher insurance rates in the future.

It's for vehicles in long-term storage

Vehicle storage insurance is a way to keep your car insured while it's not in use, without paying for coverages you don't need. It's ideal for vehicles in long-term storage.

Vehicle storage insurance is not a specific type of insurance policy. Instead, it's reduced coverage applied to your car insurance policy for vehicles not being driven. If you don't plan on driving your car for an extended period, auto storage insurance involves removing coverage from your policy or placing your vehicle in a storage status with your insurer. This can help keep your car insurance premiums low while avoiding a lapse in coverage.

Comprehensive coverage is the only type of car insurance coverage you need if you won't be using your vehicle for a long time. It covers any event that can damage your car while it's sitting still, such as theft, vandalism, building collapse, and fire. For example, if you have comprehensive coverage and your parked vehicle is destroyed in a garage fire or damaged in a storm, you'll only have to pay the deductible amount.

Comprehensive-only coverage is what's sometimes referred to as car storage insurance or parked car insurance. It's important to note that car storage insurance doesn't exist as a separate policy, but it's a term used to describe minimum coverage for a vehicle in storage.

Some insurance companies will only let you reduce your coverage to comprehensive-only after a vehicle has been in storage for a minimum of 30 days. Check with your auto insurance carrier to see whether car storage insurance is an option for you.

Switching to comprehensive-only can save you a lot of money since your car insurance premiums will be significantly lower. But remember to switch back to full coverage before driving your car again.

It's for vehicles in short-term storage

Vehicle storage insurance is a cost-saving option for vehicles in short-term storage. It is not a specific type of insurance policy but rather a reduction in coverage or a discount applied to your existing car insurance policy. This type of insurance is ideal if you don't plan on driving your car for an extended period, such as if you're going on a long vacation or spending the winter in a warmer climate.

Vehicle storage insurance can help keep your car insurance premiums low while avoiding a lapse in coverage. It typically involves removing coverage from your policy or placing your vehicle in a "storage status" with your insurer. This means that your car will only be covered for damages that can occur while it is parked or in storage, such as theft, vandalism, fire, or weather-related damage.

Most insurance companies allow you to make changes to your policy at any time, so you can add and remove coverage options as needed. However, it's important to note that vehicle storage insurance does not cover accidents or damage caused while driving, even a short distance. Therefore, you must reinstate liability coverage before driving your vehicle again.

The cost of vehicle storage insurance will vary depending on factors such as your claims history, selected coverage types, and personal rating factors. On average, comprehensive coverage, which is typically included in vehicle storage insurance, costs around $160 to $172 per year.

To prepare your car for storage, it is recommended to find indoor storage, such as a garage or public storage facility, to protect it from the elements. Other important steps include cleaning your car, changing the oil, filling up the gas tank and adding a fuel stabilizer, and disconnecting the battery or keeping it charged by driving the car for at least 15 minutes every two weeks.

Frequently asked questions