Do I need liability car insurance for a stored car?
You may be required to buy car insurance for a stored car with current registration; besides, it's wise to protect any vehicle you own. Read on to learn about insurance options for cars in storage.
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Kalyn Johnson
Insurance Claims Support & Sr. Adjuster
Kalyn grew up in an insurance family with a grandfather, aunt, and uncle leading successful careers as insurance agents. She soon found she has similar interests and followed in their footsteps. After spending about ten years working in the insurance industry as both an appraiser dispatcher and a senior property claims adjuster, she decided to combine her years of insurance experience with another...
Insurance Claims Support & Sr. Adjuster
UPDATED: Jul 8, 2023
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jul 8, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Most states insist that you have insurance on a registered vehicle
- If you cancel the registration and subsequently the insurance, your premiums may go up in the future
- Consider carrying comprehensive insurance to protect the value of a vehicle while it is in storage
If you own a vehicle and plan to keep it in storage for some time, you may wonder what you need to do about insurance. If you have a policy, should you keep paying the installments or do you need a different type of insurance in this situation altogether?
We know this can be confusing, so we have researched the topic and provided answers below.
Do you need car insurance for a stored car?
The answer to this question is “not necessarily.” Whether you want to go about insuring a stored vehicle will depend on whether you intend to maintain the current registration and also if you want to protect the car from damage, theft, or vandalism when it is off the road.
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What about vehicle registration for cars in storage?
Most states require that you carry the minimum liability auto insurance coverage while you have a valid registration in place. Indeed, some states insist that insurance companies notify them directly when a policyholder cancels their coverage or fails to make their payments.
Case in point, New York has an insurance information and enforcement system, and regulators will send you a warning notice if they find out that you do not have current insurance on a registered car.
Should you cancel your registration?
Of course, you can cancel your registration, which may be an option if you intend to store the car for an extended period. You will need to research the requirements in your state, but you might also have to return your tags to your state’s Department of motor vehicles (DMV).
If there is a lapse in your insurance coverage, this may show on the central insurance database that companies refer to when setting premiums. If you apply for coverage at a later date, you may have to pay more due to that earlier lapse.
It’s a Good Idea to Carry at Least Some Car Insurance for a Stored Car
When you cancel your insurance altogether, your vehicle will be vulnerable. If your car sustains damage while in storage through vandalism or a freak weather event, you may be out of pocket as you will not be able to file a claim with your car insurance company.
Similarly, someone could break into the storage unit and steal the vehicle with similar repercussions.
Can you get cheaper auto insurance for a stored car?
You may be able to get reduced-rate car insurance for stored vehicles.
You won’t need liability or collision coverage as you will not be driving the car, but comprehensive coverage is crucial as it will cover you against the following:
- Floods
- Storms
- Theft
- Fire
- Vandalism
In addition, some insurance companies offer policies based on the miles you drive, so shop around and see if you can find an option that makes the most sense in your situation.
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Do you have to have auto insurance for a stored vehicle with a loan?
If you do not own the car yourself but have a lease with a finance company, the company will likely insist that you carry comprehensive coverage to protect its interest in the vehicle.
As mentioned above, even though you may not be driving the car, it will still be at risk of vandalism, theft, flood, fire, or severe weather while in storage.
Case Studies: Examples of Utilizing Different Types of Insurance for a Stored Car
Case Study 1: Comprehensive Coverage Protects Against Vandalism
Sarah owns a classic car that she plans to store in a garage for the winter season. She decides to maintain comprehensive coverage for her vehicle during this period. One night, while her car is in storage, vandals break into the garage and spray paint graffiti on her car’s exterior.
Thanks to her comprehensive coverage, Sarah is able to file a claim with her insurance company. The comprehensive coverage reimburses her for the cost of repairing the damages caused by the vandalism.
Case Study 2: Comprehensive Coverage Guards Against Natural Disasters
John has a sports car that he keeps in a storage facility while he travels abroad for an extended period. He chooses to carry comprehensive coverage to protect his car from potential natural disasters. Unfortunately, during his absence, a severe storm causes significant damage to the storage facility, including his stored car.
With his comprehensive coverage in place, John can file a claim with his insurance company. The comprehensive coverage helps cover the repair costs for the damage caused by the storm.
Case Study 3: Liability Coverage for a Stored Car With a Loan
Mark recently purchased a new car and had to finance it through a loan. Due to unforeseen circumstances, he needs to store the car temporarily. However, his finance company requires him to maintain comprehensive coverage to protect their interest in the vehicle. Mark ensures he has the necessary liability coverage in place for his stored car.
Luckily, his comprehensive coverage provides financial protection if any unforeseen events, such as theft or damage, occur to the car while it is in storage.
Case Study 4: Modified Insurance Policy Based on Mileage
Emily has a secondary vehicle that she rarely uses and decides to store it for an extended period. She contacts her insurance provider and informs them about her situation. They offer her a modified insurance policy that is based on the mileage driven.
Since Emily won’t be driving the car at all while it’s in storage, she is able to secure a reduced-rate insurance policy that only covers the necessary comprehensive protection. This tailored policy helps her save money while still providing essential coverage for her stored vehicle.
Case Study 5: Lapse in Coverage and Increased Premiums
Alex decides to cancel his car insurance policy for his stored vehicle without properly informing his state’s motor vehicle department. After a few months, he decides to reactivate the policy and get coverage again.
However, he faces a significant increase in premiums due to the earlier lapse in coverage. Alex learns the importance of maintaining continuous coverage for his stored car to avoid future repercussions and higher insurance costs.
The Bottom Line on Car Insurance for a Stored Car
If you have a car with current registration, your state may insist that you carry insurance even if the vehicle is in storage. If you intend to keep your car off the road for an extended period, you may want to cancel your registration.
While you will then be able to cancel your insurance payments without hearing from the state, this may have repercussions. For example, you may have to pay an increased rate for car insurance in the future due to the lapse in coverage.
In most cases, it’s recommended to have comprehensive coverage to protect your vehicle from vandalism, storms, or theft while in storage. If your car has a lien from a finance company, the company will likely insist that you carry this type of coverage as well.
Frequently Asked Questions
Will my credit score or driving record impact the cost of insurance for a stored car?
Factors like credit score and driving record may still be considered when calculating insurance premiums for a stored car. Discuss with your insurance provider to understand how these factors may affect the cost.
Can I switch to storage insurance instead of my regular car insurance policy?
Some insurance companies offer specialized storage insurance policies for cars in storage. Contact your insurance provider to inquire about these options.
What if my stored car is stolen or vandalized?
Comprehensive car insurance typically covers theft and vandalism, allowing you to file a claim for a stolen or damaged vehicle.
Are there insurance requirements for classic or antique cars in storage?
Check your state’s regulations and consult with your insurance provider to understand any specific insurance requirements for classic or antique cars in storage.
Can I remove all insurance coverage if my stored car is in a secure storage facility?
It’s advisable to maintain some level of insurance coverage, even in a secure storage facility, to protect against unforeseen events or accidents.
What if someone else drives my stored car and gets into an accident?
Liability car insurance generally covers accidents caused by someone driving your car. Check your policy to determine the extent of coverage.
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Enter your ZIP code below to view companies that have cheap car insurance rates.
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Kalyn Johnson
Insurance Claims Support & Sr. Adjuster
Kalyn grew up in an insurance family with a grandfather, aunt, and uncle leading successful careers as insurance agents. She soon found she has similar interests and followed in their footsteps. After spending about ten years working in the insurance industry as both an appraiser dispatcher and a senior property claims adjuster, she decided to combine her years of insurance experience with another...
Insurance Claims Support & Sr. Adjuster
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.