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Do I Need Car Insurance When My Car is in Storage?

This is a good question and one that is asked often. Do I need insurance while my car is in storage?

Whether you are putting your car in storage while you head off to a semester at college or while you travel the world for 6 months, you need to know whether you need to maintain auto insurance on it.

You have likely pondered the savings that you can receive monthly if you do not have to pay insurance on your vehicle, but is it even a possibility?

Let’s see.

Car Storage Insurance and What You Need to Know

Many insurance companies do not require you to have a full coverage policy on your car while it is in storage. Car insurance agencies consider a vehicle to be stored when it will be in storage for 30 days or more.

Typically, you can remove additional coverage options such as collision and liability and only stick with comprehensive coverage. You will need to check specifically with your auto insurance agency as they may require you to maintain a policy with them.

Comprehensive coverage is almost ALWAYS required 1) by the insurance company 2) by the Department of Motor Vehicles, and 3) by the storage facility.

Comprehensive auto insurance helps you make needed repairs to your car when it is damaged from things other than a collision such as fire, theft, or damage.

One of the plus sides of only carrying comprehensive insurance is that you will pay a significantly smaller amount for your policy each month while still receiving the protection you want for the car.

Pay a significantly smaller amount for your policy each month while still receiving the protection you want for the car.

If you are not the owner of your vehicle and you are either leasing it or financing it, the lender may require that you maintain full coverage on the vehicle, even if it is in a storage unit.

Some insurance companies will require your car to be in storage for a specific number of days BEFORE you can remove the insurance on it.

You can read more about car storage insurance and look for a unit near you here:

Make Sure You Are Sure BEFORE You Cancel Your Insurance

There are some drawbacks to canceling your insurance that you should consider too. For one, if something happens to your car and you completely cancel all insurance, you would be liable for the damages. In addition, canceling your insurance causes a gap in coverage, which could affect your rates later.

No matter what you choose to do, keep in mind that insurance coverage, even just comprehensive, is a great idea, but it is not always required.

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