Car Storage Insurance: What It Is and How It Works
- Car storage insurance is comprehensive-only coverage that some insurance companies offer when you plan to store — and not drive — your vehicle for 30 days or more.
- Comprehensive-only coverage only protects your vehicle from theft, vandalism, fire or weather damage.
- You are not legally allowed to drive a vehicle that’s under a comprehensive-only storage policy because it lacks liability insurance.
- When you are ready to drive your stored vehicle again, you must first call your insurer to reinstate whatever coverages (liability, collision) you had before you changed your policy.
What is car storage insurance?
Car storage insurance refers to when you reduce your regular auto insurance policy down to just comprehensive coverage when you know you won’t be driving your vehicle for an extended period of time (typically at least 30 days). Comprehensive-only coverage keeps your policy active and protects your parked or stored vehicle from theft, vandalism, or damage caused by fire or weather.
Car storage insurance is not a separate policy and can be a good option for drivers who are going out of town for work, school or military service, or who only use their car seasonally. A storage policy can help protect your car from non-driving risks while bringing your premium down from what a full coverage policy would cost.
A policy for a car in storage can go by different names, including comprehensive-only, snowbird coverage, parked-car or seasonal insurance coverage. Not all insurance companies offer it, however.
Importantly, you can not legally drive your car once it’s under a car storage policy. If you do want to drive your car again, you must reinstate your liability coverage before doing so.
What does car storage insurance cover?
Car storage insurance typically consists of just comprehensive coverage, which protects against non-collision damage that can happen while it is parked. Some of the common covered perils include:
- Theft
- Vandalism
- Fire
- Storm damage
- Falling objects
Like other types of car insurance, coverage may be subject to deductibles, exclusions, policy limits and the cause of loss, so it’s important that you go over the terms and conditions carefully.
What does car storage insurance not cover?
Cars that are on a car storage or comprehensive-only coverage plan will not be insured for any damage or injuries that happen while the car is operating. This includes not being covered for:
- Liability
- Collision
- Medical payments
- Property damage
It is crucial to understand that anytime a car is driven on public roads, you are obligated by your state’s laws to carry appropriate coverage. That means that before you drive your vehicle that has been in storage again, you need to reinstate the required coverage.
Should you insure a car in storage?
In most cases, it is worth keeping at least some insurance in order to continue protecting a vehicle from damage or theft while the car is stored. It can also help you avoid a lapse in your coverage. However, being able to reduce coverage and save money will depend on the insurer, registration status and if there are any restrictions in the driver’s financing/lease agreement.
Storage insurance may make sense if:
- You won’t be driving the car for at least 30 days or more
- You are in the military being deployed or relocated
- You own a vehicle that you only use seasonally (like a convertible in the summer or a snowplow truck in the winter)
- Your state doesn’t require you to have liability insurance on the stored vehicle
- Your leasing or financing company (if applicable) allows you to drop to comprehensive-only insurance, or you own the vehicle outright
While it might be tempting to fully cancel your policy while your car isn’t being used, doing so creates a coverage gap. When you try to get insurance in the future, a coverage gap may mean higher rates.
A word of caution: It’s important to check with your state DMV before reducing your insurance to see if there would be any potential consequences in doing so. For example, some states might require that you cancel your registration once you drop liability insurance.
From a LendingTree expert
As a former insurance agent, putting a car into storage can be a bit of a hassle. State requirements can complicate taking a car off the road. In New York, for example, you usually have to surrender your plates in person or by mail before dropping liability coverage. It’s easy to overlook, but skipping it can mean daily penalties and a suspended license.
How to get car storage insurance
Car storage insurance is a change to an existing policy, not a separate policy you buy. If you’re considering this move to potentially save money on your premium, it’s important to follow these steps.
- Ask your insurer about storage coverage. Not all auto insurers offer this option, though there may be opportunities to switch to comprehensive-only coverage.
- Check your state’s rules. Some states may require you to cancel your vehicle registration and/or sign an affidavit saying you won’t drive the vehicle in order to drop liability coverage, for example.
- Review your loan or lease agreement. Chances are, if you are currently leasing or financing your vehicle, you will be required to keep full coverage, including liability, even if you don’t plan to drive the car.
- Restore coverage before driving again. It’s the law to have liability coverage when you drive.
How much does car storage insurance cost?
Car storage will usually cost less than a policy with liability and collision because it provides less protection, but the actual price varies. Some of the key factors that could impact your car insurance costs include:
- Whether the vehicle is in a garage
- The type/level of coverage you decide to keep
- The vehicle value
- The deductible amount (higher deductibles can lower the premium)
- Prior claims and driving history
When deciding if changing your coverage is worth it, look at your current policy’s declaration page to see your current cost of comprehensive coverage. This can give you a rough estimate of how much you may be able to save; however, you won’t know the exact cost until you get a storage plan car insurance quote.
Frequently asked questions
No, you cannot drive a car with a storage insurance policy because it lacks liability coverage. State law generally requires that you carry liability coverage when operating a vehicle.
When you finance or lease a car, it is unlikely that you will be able to switch to car storage, or comprehensive-only, insurance coverage. This is because most auto lending or leasing contracts require that the vehicle maintain full coverage regardless of whether the car is being driven or not.
You may be able to pause car insurance while a car is in storage, but then it won’t be covered if the vehicle is stolen or damaged. Another option may be to downgrade your policy to a car storage or comprehensive-only policy, which can reduce the premium but still provide protection for the car while it is parked.
Geico offers a car storage insurance plan specifically for military service members who may need to relocate for 30 days or more.