Do You Need Insurance For A Car That Is Parked Or In Storage?

A car that sits in a driveway, garage or storage unit can still be damaged or stolen. Weather, fire, vandalism and falling objects do not wait for you to drive. For that reason, many owners keep some form of coverage even when the vehicle is rarely used.

Parked car insurance, sometimes called storage or reduced coverage, is a way of keeping protection in place for a vehicle you are not driving, often at a lower cost than a full policy.

How Does Parked Car Insurance Work?

In most cases, you ask your insurer to change the policy to cover the car while it is parked. The usual choice is to keep comprehensive coverage, which protects against non-crash damage such as theft, fire or vandalism, and to reduce or remove the coverages that apply only when the car is on the road.

Rules differ by state and by company. Some states still require a registered vehicle to carry liability insurance even if it is not being driven, so check your state requirements before you change anything.

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Situations Where It May Help

Seasonal vehicles
Convertibles, motorcycles and classic cars that are put away for the winter.
Long trips away
If you are travelling for work or personal reasons and the car will sit unused.
Second or spare car
A vehicle in the household that is rarely driven but still registered.
Between vehicles
When you are waiting to sell a car or decide what to do with it.

Things To Check Before Reducing Your Coverage

State requirements: Find out whether your state requires liability or other insurance on a registered vehicle, even when parked.
Loan or lease terms: If you finance or lease the car, the lender usually requires comprehensive and collision coverage.
Where the car is kept: A locked garage or storage unit can reduce risk, and some insurers may ask how the car is stored.
Coverage when you drive again: Ask how to restore full coverage so there is no gap on the day you take the car out.

Tips For Keeping The Cost Down

Tell your insurer honestly how often, if ever, the car will be driven.
Compare quotes from several insurers, as the price of reduced coverage can differ.
Never drive a car that is on a storage or reduced policy unless your insurer confirms you are covered.

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Use our online form to compare options for your vehicle. Check what each policy covers, what it excludes and what happens when you start driving again.