Car Storage Insurance: How it Works

Car storage insurance isn’t its own type of coverage. Sometimes, your regular car insurance might give you less coverage or a discount if your car isn’t being driven. This might involve either cancelling your policy or telling your insurance company that your car is in storage if you’re not going to use it for a while.

Car Storage Insurance

What is Car Storage Insurance

Car storage insurance is a type of insurance that covers a vehicle that won’t be in use for an extended period. It’s also known as parked-car insurance and storage coverage. Car storage insurance covers a vehicle against damages such as theft, vandalism, hail, fire and damage caused by animals.

This type of insurance is ideal for vehicles that are only driven seasonally or vehicles that are in storage for repair.

How Does Car Storage Insurance Work

Consider talking to your car insurance agent about your options if you won’t be using your car for a while. This could be because you’re going on a trip overseas or because you only have one car at home. Your agent can help you reduce coverage that you don’t need while still following the law.

But what if your car isn’t in storage? You might still wonder if you need insurance for it. Maybe your hobby car is being fixed up, or you’ve inherited a car you’re not driving. In these cases, getting specific storage coverage might make sense, even if the car stays parked.

This is because accidents can happen even if your car never leaves the driveway. So, keeping comprehensive coverage, even if you drop other parts of your insurance, could be smart. If you have a car sitting unused, it’s a good idea to check with your insurance agent about what coverage you need.

When it comes to insuring a parked car, there’s a lot to think about. And if you reduce coverage while it’s stored, make sure to switch back to your regular insurance when you start driving it again.

When You Need Car Storage Coverage?

You may need car storage coverage in the following situations:
  • Seasonal storage: If you have a seasonal vehicle, such as a classic car, RV, or boat, that won’t be used for an extended period.
  • Long-term parking: If you’ll be away for an extended time and your car will be parked in a storage facility or on the street.
  • Repair or restoration: If your car is in storage for repairs or restoration.
  • Military deployment: If you’re in the military and will be deployed for an extended time.
  • College storage: If you’re a student and will be away from your car for an extended time.
  • Business or personal travel: If you’ll be away for an extended time and won’t be driving your car.
  • Storage in a garage or warehouse: If you’re storing your car in a garage or warehouse for an extended time.
Car storage insurance can provide peace of mind and financial protection against damage or loss.

How to Obtain Car Storage Insurance

 Here’s how to obtain car storage insurance:

  1. Contact your insurance provider to discuss your options.
  2. Be aware that some states and lenders may not allow you to drop coverage.
  3. Consider getting a comprehensive-only policy.
  4. You may need to have another vehicle covered by insurance to meet state minimum requirements.
  5. If you’re still paying off a car loan, you may still need to have full coverage.
  6. If you’re not satisfied with your current insurance company’s offerings, consider shopping around for a new one.

Car Storage Insurance Cost

The cost of car storage insurance varies depending on factors such as location and the insurance provider. On average, American drivers pay $172 annually for comprehensive car insurance. Car storage covrage can lower your rates by as much as 80%, but you can also save money by eliminating unneeded coverage.

Companies That Offer This Insurance

Here are some companies that offer this Insurance:

  • USAA
  • Geico
  • State Farm
  • Nationwide
  • Progressive
  • Travelers
  • American Family Insurance
  • Erie
  • Allstate

These companies options are only a few, but there are many other companies that offer Car Storage coverage. It’s really important to carefully look into and compare different policies. Then, find the one that fits your needs the best.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.