For those that only drive a vehicle seasonally or that need to store a vehicle for a while, it can be frustrating to keep paying for full coverage insurance while the vehicle isn't being used. Fortunately, there is an option available to help lower your insurance cost — a storage policy. The following guide can help you better understand this coverage to determine if it is a good choice for your situation.
How does storage insurance differ from a regular policy?
Car storage insurance does not provide the depth of coverage of a normal automotive policy, which is why it is available at a lower cost. A standard full policy covers liability, collision, and comprehensive damages. It may also include additional coverage for under or uninsured motorists, higher property coverage limits, and extra medical coverage. A storage policy only provides comprehensive coverage and most additional coverage riders can not be added onto the policy.
What do storage policies typically cover?
The limits of the comprehensive policy mean that you can't legally drive the car while it is only covered under the storage policy. These policies tend to only cause damages caused by theft, vandalism, and weather-related events. Some policies may also cover animal damages, such as if rodents build a nest under the hood and chew through the wiring during storage. You may also be able to add on increased property coverage, depending on the value of the vehicle.
Are there limitations on where the vehicle can be stored?
A storage policy only covers vehicles that are not stored on public or private roads. This means you can store the vehicle in a dedicated storage facility, in your private driveway, or in your garage. Vehicles parked on the street must have an insurance policy that meets state minimums, which is typically liability only. If you are worried about hit and runs from another vehicle while parked on the street, you will also need to add collision coverage. A storage policy does not typically cover any damages from another vehicle.
Is storage insurance legal in your area?
Storage insurance is typically legal, but you may need to take further steps depending on your situation and state laws. For example, there may be requirements to temporarily suspend your vehicle registration to avoid insufficient insurance fines. If you are legally required to maintain insurance, perhaps due to an uninsured ticket, you may also need to notify the state that you are taking your vehicle off the road.
For more information on your car insurance needs, contact an auto insurance service today.