Can I get a discount on auto insurance if my car is in storage?

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Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance...

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Reviewed byDaniel Walker
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UPDATED: Mar 13, 2020

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Things to Remember...

  • Your state of residence will determine the insurance requirements of a stored car
  • Some states allow you to cancel your insurance, and others provide alternative insurance options
  • If you cancel your insurance on your stored vehicle, you will not be able to legally drive it
  • You may qualify for a car insurance discount if you don’t drive your vehicle often

There are a number of things you can do to lower your auto insurance premiums if you decide to put your car into storage.

Some states will allow you to cancel your insurance altogether if your car is put into storage.

Other states allow companies to have alternative auto insurance options for those who are planning to store their vehicle, which will relieve a good deal of financial responsibility for the car owner.

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Storing Your Vehicle

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Some states will allow you to completely terminate your auto insurance coverage if your car is being stored.

“Stored” means to the insurance company is that your vehicle is housed in a locked facility. Having your car on the street corner or in your garage doesn’t usually qualify as being stored.

If you are in a state where you can cancel your insurance, then you will need to hand in your plates to the DMV because they will need proof that your vehicle is not going to be driven.

If you are in a state that still requires some sort of insurance on your vehicle, you may still be able to cancel the liability coverage of on your car.

But you would still need to hand in your tags to the DMV because your vehicle wouldn’t have the minimum required liability insurance in order for your car to be allowed on the road.

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Can I lower my comprehensive insurance if my car is in storage?

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Depending on the state you reside in you need to check what, if any, are the minimum state-required comprehensive coverage options.

Some insurance companies have comprehensive plans for stored vehicles, which are less than traditional comprehensive rates for cars being driven regularly.

These special comp plans do not have liability coverage, so once again you would need to hand in your plates to the DMV because you wouldn’t be carrying the state’s required minimum liability coverage.

If you are in a state that still requires you to have liability coverage on your stored vehicle, you still can save money by taking away your comprehensive coverage completely.

If that makes you feel a bit uneasy because you are worried about loss or damage to your vehicle, then simply raise your comprehensive deductible and that will ease some of the financial expenditure for this coverage.

Remember, the higher your deductible the less you pay up front.

Granted, raising your deductible also means that you will have more out of pocket expenses if something happens to your car, but by having it stored in a safe, locked facility should lessen your fears a bit.

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Will my homeowner’s insurance cover my stored vehicle if it’s not insured?

If you are able to completely strip away all the auto insurance on your stored car then you will be on the hook for any and all damages to the vehicle.

Any possessions in the vehicle will be covered by homeowner’s insurance, but not the car itself.

The options some storage facilities have is to provide insurance for your car if it is stolen or damaged while in their possession.

Moreover, some auto insurance providers have similar auto storage coverage for those who want to make sure any damages or theft upon their automobile is covered.

Are there other ways to save money if my vehicle is in storage?

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Some insurance providers have what is called reduced mileage coverage meaning that you pay a lower rate based on the mileage you are going to drive.

By knowing you are not going to drive your vehicle at all, and dropping your collision coverage can save you approximately $300-$500 by going this route.

Pay as you go insurance is another type of alternative car insurance coverage which is billed on a base monthly fee and the number of miles you put on your vehicle.

So while your car is in storage all you are paying for is the base monthly fee, which drops your overall insurance premium considerably.

All in all, remember that storing a car is a costly endeavor by itself.

There are ways to save money on the insurance side, but you may want to make sure you’re not on the financial hook if something unexpected happens to your vehicle.

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References:

  1. https://www.edmunds.com/car-care/how-to-prep-your-car-for-long-term-storage.html
  2. https://www.thebalance.com/parked-car-insurance-527045
  3. https://www.allstate.com/tools-and-resources/car-insurance/insuring-a-car-in-storage.aspx
  4. https://www.esurance.com/info/car/the-pros-and-cons-of-high-deductibles
  5. http://www.huffingtonpost.com/laura-adams/have-low-mileage-you-may-_b_7338458.html

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