Margaret Huntley Last Updated On: June 27, 2023

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What Is Car Storage Insurance?

storage car insurance

The truth is, there is no such thing as a car storage insurance policy. But that doesn’t mean you can’t protect your car in storage. While there is no such thing as a policy that is specifically designated for a stored car, the term “car storage insurance” refers to the minimum amount of normal car insurance coverage that should be used when your car is in storage. 

Therefore, you can reduce the amount of your auto insurance coverage and still have car storage insurance. You may also hear the terms “parked car insurance” and “comprehensive-only insurance” thrown around. These terms mean the same exact thing that car storage insurance does: they simply describe the minimum coverage placed on a vehicle that is not being driven. 

So how exactly does it work? Let’s dive into the details. 

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When You Might Need Auto Storage Insurance

If you will not be driving your car for a significant period of time, it doesn’t make sense to be paying for insurance that you won’t use.  Here are a few examples of situations where wouldn’t need full coverage car insurance:
  • You are traveling abroad for a long period of time
  • You are a student going to a new city for school and are not taking your vehicle with you
  • You will not need your car to commute to work for a few months
  • Your vehicle is damaged and you are unable to repair it yet
Whatever the reason may be, the bottom line is that parking your car for months at a time warrants a reduction in car insurance coverage. 

How Car Storage Insurance Works

Because a car storage insurance policy is not actually different from the standard car insurance policy, it works just the same. If your vehicle becomes damaged, you simply file a claim with your provider. 

How to Get Car Storage Insurance

In order to reduce your auto insurance for a stored car, you will need to contact your current insurance provider. The majority of companies allow you to make changes to your auto policy at any time during your term.  All you need to do is contact your provider and let them know you’d like to obtain car storage insurance. From there, they can advise you on how to proceed.  Your insurance experts will know:
  • Whether your state allows you to fully drop liability coverage
  • What are the minimum coverage requirements
  • Whether you need to cancel vehicle registration while the car is parked
  • Whether your homeowners insurance will cover a car parked in your garage
  • The best policy to suit your needs
If you don’t currently have auto insurance, you simply need to choose a provider and plan. To make it easy, ConsumerCoverage can get you access to free vehicle storage insurance quotes, fast.

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Other Considerations for Vehicle Storage Insurance

The following are a few important details to know before converting your policy to car storage insurance:
  • If your car is loaned or leased, you may not be allowed to reduce or drop liability coverage
  • When a major natural disaster is on the way (such as a hurricane), you cannot make changes to your insurance policy
  • Do not forget to restore your insurance before driving your vehicle
That last point is especially important: if you start using your car regularly again, you’ll need to update your policy, or else you could put your coverage and any claims in jeopardy. 

Alternatives to Vehicle Storage Insurance

Generally speaking, any insurance is better than no insurance. That said, when parking your car for a longer period of time, car storage insurance is not your only option. You can also consider:

  • Suspending coverage
  • Canceling vehicle registration
  • Canceling coverage

Note: with the last two options, you should be mindful that a gap in coverage will likely mean higher premiums when you do restore coverage. 

How Much Is Storage Insurance on a Car?

The good news is that car storage insurance is affordable. After all, the risk of damage is minimized compared to a vehicle that’s being driven around all the time. You can expect to save a significant chunk of money on your auto insurance since you only need comprehensive insurance, although the exact cost will vary by provider and policy. 

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Key Takeaways for Auto Storage Insurance

When parking your vehicle for a substantial period of time, reducing your insurance coverage can save you money. All you need to do is contact your insurance provider, and they can help you get car storage insurance. Keep in mind, you should only do this if you’re not planning to drive your vehicle, or else you could jeopardize your coverage.

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Margaret Huntley Margaret Huntley is a creative writing and philosophy student at Western University. She has been working as a freelance writer for over two years and has written about everything from insurance, to poker, to health and wellness for international businesses.

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