Car Storage Insurance: What It Is and How It Works

Are you a proud owner of a classic car or a seasonal vehicle? Have you ever thought about how to keep your valuable possession safe when it's not being used? Car storage insurance can help with that. It's a special kind of coverage made to protect your vehicle when it's in storage. Whether you love vintage cars or just want to keep your vehicle safe during the off-season, knowing about car storage insurance is important to make sure your vehicle stays well-protected.

What Is Car Storage Insurance?

Car storage insurance is a type of insurance coverage designed to protect vehicles that are not in use. This insurance provides financial protection in case of unexpected events, such as theft, vandalism or damage, while the vehicle is in storage. It's especially valuable for owners of classic cars, seasonal vehicles or any other automobiles that are not regularly driven.

When a car is in storage, it may not be exposed to the same risks as a regularly used vehicle. Car storage insurance takes this into account and typically comes with lower premiums compared to standard auto insurance policies. This type of insurance ensures that even when your vehicle is not on the road, it remains adequately protected against unforeseen circumstances.

What Does Storage Insurance Cover on a Vehicle?

Car storage insurance typically covers a range of risks and scenarios that can occur when your vehicle is in storage. These may include:

• Theft: Car storage insurance can provide coverage in case your vehicle is stolen while it's in storage.
• Vandalism: If your vehicle is maliciously damaged or vandalized, this insurance can help cover the repair or replacement costs.
• Fire and smoke damage: It often includes protection in case of fire or smoke damage to your vehicle.
• Damage from natural disasters: Car storage insurance may cover damage caused by natural disasters like earthquakes, floods or storms.
• Falling objects: Coverage can extend to damage caused by falling objects such as tree branches or debris.
• Collision coverage: Some policies may offer collision coverage for accidental damage that occurs while the vehicle is being moved within the storage facility.

The coverage and limits can vary depending on the insurance provider and the policy you choose. It's important to carefully review the terms and conditions of any car storage insurance policy to ensure it meets your needs and expectations.

When Do You Need Storage Insurance for a Car?

Car storage insurance is particularly valuable in several situations, including:

Seasonal storage: For people who store their vehicles during off-seasons, such as putting convertibles away for the winter or stowing snowmobiles during the summer, car storage insurance is a crucial shield against potential damage or theft. It ensures that these vehicles remain protected while they're not in use and exposed to environmental elements.

Long-term parking: In cases where a vehicle will be parked and unused for an extended period, such as during a lengthy trip or military deployment, car storage insurance becomes an essential safety net. It offers peace of mind to vehicle owners by providing coverage for unforeseen incidents that may occur while the vehicle is stationary for an extended duration.

Restoration projects: Enthusiasts and hobbyists engaged in car restoration or repair projects often find themselves in need of car storage insurance. This coverage guarantees that the vehicle undergoing restoration is safeguarded against any accidental damage or mishaps that may occur during the nonoperational phase of the project. Whether it's a classic car undergoing a complete overhaul or a vintage motorcycle being lovingly restored, this insurance ensures that your hard work and investment remain protected.

Collector cars: For owners of classic or collector cars that spend the majority of their time in storage or are rarely driven, car storage insurance is a wise choice. These vehicles are often kept for display at shows, museums or for occasional use. During periods when they're not on the road, car storage insurance provides the necessary coverage to shield these valuable assets from potential risks.

Pros and Cons of Car Storage Insurance

Car storage insurance can be highly beneficial for protecting valuable vehicles during periods of inactivity or storage. It's important to weigh the advantages and disadvantages, considering your needs and the intended use of your vehicle before deciding to invest in this type of coverage.

Pros

• Protection during inactivity: The primary advantage of car storage insurance is that it protects your vehicle when it's not in use. This ensures that your valuable asset is safeguarded against theft, vandalism or damage even when it's in storage.
• Lower premiums: Car storage insurance typically comes with lower premiums compared to regular auto insurance. Because the vehicle is not on the road as often, the reduced risk translates to more affordable coverage.
• Tailored coverage: Many car storage insurance policies can be customized to fit your needs. You can often choose coverage limits and options that align with the value and requirements of your stored vehicle.
• Peace of mind: Knowing your vehicle is protected, whether it's in long-term storage or undergoing restoration, can provide peace of mind. You won't have to worry about potential financial burdens if an unexpected incident occurs.

Cons

• Limited use: One of the main drawbacks of car storage insurance is that it restricts the use of your vehicle. You may only be allowed to drive it for specific purposes, such as moving it within the storage facility. If you plan to use your vehicle frequently, this limitation can be inconvenient.
• Not suitable for all vehicles: Car storage insurance is best suited for vehicles that are genuinely in storage or not driven regularly. If you have a daily driver, this type of insurance may not be practical.
• Additional cost: While car storage insurance typically has lower premiums than regular auto insurance, it still represents an additional cost. Some vehicle owners may find it an unnecessary expense, especially if they believe their stored vehicle is well-protected without it.
• Limited coverage: The coverage provided by car storage insurance may not be as comprehensive as regular auto insurance. It may not include certain optional coverages like roadside assistance or rental car reimbursement, which could be essential for some drivers.

How Much Is Storage Insurance on a Car?

The cost of car storage insurance can vary widely depending on several factors. These factors may include the vehicle's type and value, location, storage duration and insurance provider. Generally, car storage insurance tends to be more affordable than standard auto insurance because the vehicle is not in use. 

Your claims history and the coverage options you select will also impact the final price. If you decide to maintain only the state minimum coverage requirements, the national average cost for this minimal coverage is approximately $622 per year, according to Bankrate. It's essential to shop around and obtain quotes from multiple insurance companies to find the most cost-effective option that suits your situation and insurance needs.

Useful Tips on Preparing Your Car for Storage

When preparing your vehicle for storage, it's essential to take certain steps to ensure it remains in good condition. Here are some useful tips, including choosing the right car storage facility:

Clean and detail: Thoroughly clean the interior and exterior of your vehicle. This helps prevent dirt and grime from causing damage during storage. A clean car is also less appealing to rodents that may find their way into storage areas.

Fluid check and change: Ensure that all fluid levels, including oil, coolant and brake fluid, are at the recommended levels. Consider changing the oil before storage to prevent potential contaminants from sitting in the engine.

Fuel stabilizer: Add a fuel stabilizer to the tank and run the engine for a few minutes to ensure it's distributed throughout the fuel system. This prevents fuel from deteriorating and causing issues.

Battery maintenance: Disconnect the battery or use a battery maintainer to prevent it from discharging completely during storage. A dead battery can lead to difficulties when you're ready to use the vehicle again.

Proper tire care: Inflate the tires to the recommended pressure and consider placing the vehicle on jack stands to prevent flat spots from forming. Additionally, some car storage facilities offer climate-controlled options to minimize tire degradation.

The right storage facility: Selecting the appropriate storage facility is key. You can choose from indoor, outdoor or covered storage. Indoor storage offers the best protection against the elements and potential theft. Outdoor storage is typically more affordable but exposes your vehicle to weather conditions. Covered storage provides a compromise between the two, offering shelter from direct sunlight and rain.

Alternatives to Storage Car Insurance

While car storage insurance is a common choice for protecting stored vehicles, there are alternatives to consider:

• Option 1: Suspend coverage. You can contact your regular auto insurance provider and inquire about suspending coverage during the storage period. This can temporarily reduce your premiums while maintaining coverage for other vehicles. Most states require continuous insurance coverage for registered vehicles. In case of suspension, vehicle owners may need to surrender their license plates to the state's Department of Motor Vehicles (DMV) or equivalent agency.
• Option 2: Some auto insurance policies offer comprehensive coverage, which includes protection against theft, vandalism and damage even when the vehicle is in storage. Check with your current provider to see whether this is an option.
• Option 3: Some car storage facilities offer their insurance coverage as part of their rental agreements. It's worth exploring this option to see if the facility's coverage is suitable for your needs.

A Practical Cost-Effective Option for Cars Not in Use

Opting for car storage insurance coverage is a practical solution for vehicle owners who plan to put their vehicles out of use for a certain period. This option allows for maintaining essential coverage while potentially reducing insurance costs. Owners must understand the intricacies involved, such as the need for continuous coverage as per state law and the possibility of having to surrender license plates. Consulting with insurance providers and local DMV offices is recommended to ensure compliance with regulations and to make an informed decision that best suits individual circumstances. This approach not only offers peace of mind but also ensures legal and financial protection during the vehicle's dormancy period.

Frequently Asked Questions