What is car storage insurance?

You may be wondering what your options are if you don’t plan to drive your car for a while.

What is car storage insurance?

First, vehicle storage insurance does not constitute an insurance policy. Another way to look at it is bare-minimum coverage that covers vehicles that are not driven. Auto storage insurance covers you if you don’t plan to drive your car for a long time. These modifications can help you keep your car insurance premiums down while your vehicle isn’t being used.

How to get car storage coverage

Talking to an agent is your best option. You will get information from them about whether your vehicle is eligible to be stored, the process and how you can comply with your state’s or lender’s requirements.

Most insurance companies permit you to make any changes to your policy at anytime, unless there is a major storm. You can also add or remove coverage at any time during your term, and store your vehicle if necessary.

It is important to remember that your car insurance policy cannot be cancelled. Your state might revoke your driving privileges if you cancel your policy and keep your car registered. You will need to pay fees such as a license reinstatement fee to get your driving privileges back. The state will determine the amount. Depending on the state, some states charge only $40. Others, such as Kentucky can charge $100 to $1,200. You may also need to pay additional fees if you cancel your policy. Your lender may charge fees if you cancel your insurance, and your vehicle is financed.

Car storage coverage: When should it be used?

Consider other insurance options such as vehicle storage.

  • You don’t plan to drive the car for more than a few months.
  • You have no plans to use the car in the immediate future, but you have an inherited car.
  • If you are on a trip or a student, you will be away from home for a long time.
  • You are currently serving in the military.
  • If your vehicle is experiencing a mechanical problem and can’t be driven for a prolonged time.
  • A vehicle is kept at a second or seasonal residence. You only use it for a few months each year.

If you don’t plan to drive your car for a prolonged period of time, it might be worth putting your car into storage. Your insurance company may not cover an accident if your vehicle is stored. This means you will have to pay for any injuries or damages caused by an accident at fault.

How to store a car

  1. You will need to find an indoor storage place for your vehicle. A garage or public storage facility is the best option.
  2. Get it cleaned. Any gunk or dirt left on your car for a long time could cause damage to the paint. This would make your car more susceptible to rust. For extra protection, you might also consider waxing your car.
  3. Check the oil regularly: If your vehicle sits for too long, it can cause damage to its engine.
  4. Add a fuel stabilizer to your gas tank. This will keep the seals from drying during storage. Your car’s engine will be protected by the fuel stabilizer, which can prevent gas from deteriorating up to 12 months.
  5. It is best to start it occasionally (if you can): If it does not, it will die and you will have to jump whenever you are ready. It is best to not drive it if you start it up. You can also unplug the negative wire to prevent it from starting. You may be required to disconnect the battery by some insurance companies before you can change your car’s storage status.
  6. You should disengage your parking brake. It may cause damage to the rotors. Instead, use a tire chock.
  7. Check that your tires are properly inflated. Tires can lose pressure in colder weather, so make sure they are up to standard before you go.
  8. Optional: Remove your tires and place the car on jacks. Tires can become flat if they are left unmoved for too long. This could lead to you needing new tires when you get your car out of storage.
  9. Protect your car against pests: rodents and mice will search for warm, dry places to nest in the winter months. Cover the air intake and clear the exhaust pipe. Other mice deterrents, such as mothballs and mouse traps, may be considered.

Questions frequently asked

What insurance do I need for a car that is stored?

Unless you are in one of the rare states that does not require insurance (like New Hampshire), you will need to have car insurance if your vehicle is registered. Your insurer will notify the state that you have removed liability coverage and other coverages from your policy when you place a vehicle in storage. You may be required to sign an affidavit by the state because of this.

You don’t need any paperwork if you aren’t storing your vehicle in storage and only changing your collision and comprehensive coverage.

Do you offer car storage discounts?

Yes, you can get a storage discount from companies in addition to the reduction of your premiums for adjusting your coverage. Here are some:

  • USAA provides a storage discount up to 60% for military personnel deployed.
  • Erie provides a reduced usage discount for vehicles that have been stored for more than 90 days.

Why would you store your car?

You can save money on insurance by storing your vehicle. However, comprehensive coverage will cover any damage to your vehicle that may occur while your policy is in effect. Your comprehensive coverage would cover the costs of repairs if your vehicle is damaged or destroyed by a fire in its garage.