The question appears on your screen, “Would you like to add on car storage insurance for an additional $[X] a month?”
If you’re storing your car in a 10’x20′ or 10’x30′ storage unit, you might assume that nothing bad will happen within the four walls of a high-surveillance storage facility—especially if you’ve invested in the best storage locks on the market. But car storage isn’t without its risks.
When storing your vehicle and keeping it parked for an extended period, your car may be exposed to threats like break-ins, fires, flooding, etc. Without proper car storage insurance, you risk paying out of pocket for any possible damages.
Just parking your car in a storage unit can pose risks to your car if not executed correctly.
So, do you actually need car storage insurance? Say “yes,” and you’re paying additional monthly costs, but say “no” to car storage insurance, and you risk paying thousands in damages.
To help you answer this question, check out this guide.
Understanding Car Storage
Whether you have a classic car that only comes out for special occasions or temporarily storing your hobby car during an extended trip, having vehicle storage insurance is a great way to protect your vehicle when it is not in use.
Also known as “parked car insurance” or “comprehensive-only coverage”, this auto insurance typically provides comprehensive coverage, which safeguards your vehicle against theft, fire, and damage.
While this coverage can grant any vehicle owner peace of mind, before taking out this car insurance coverage, it is essential to consider several factors, including:
- Vehicle value
- Location
- Coverage limits
- Insurance history
- Minimum storage periods
Considering these factors will help guide your decision on whether auto storage insurance is right for you.
Weighing the Pros and Cons of Car Storage Insurance
Before purchasing comprehensive-only coverage, it’s important to carefully weigh the pros and cons to make an informed decision.
Pros of Car Storage Insurance
Comprehensive Protection
Comprehensive-only coverage, specifically, offers robust protection for your stored car. It covers non-driving-related damages such as theft, vandalism, fire, and even damage from falling trees.
Option for Continuous Coverage
This coverage helps you avoid gaps or lapses in your auto insurance history. Such lapses could categorize you as a high-risk client, leading to increased premiums for other types of coverage in the future.
Cons of Car Storage Insurance
On the flip side, a comprehensive-only policy also comes with some potential drawbacks.
Cost vs. Benefit
The cost of comprehensive coverage may outweigh the benefits depending on the vehicle’s value and how long it will be stored.
Minimum Storage Duration
Some insurers require your vehicle to be stored for a set minimum duration before approving a reduced coverage request.
Policy Restrictions
Reducing liability coverage to save money means you can’t legally operate the vehicle while it’s under that policy.
How to Choose the Right Car Storage Insurance Policy
Choosing the car storage insurance policy best suited for your needs involves evaluating various factors, including:
- Your Vehicle’s Value: Liability coverage for a high-value classic car is usually more critical than a less valuable stored car.
- Storage Location: High-risk areas prone to theft or vandalism may require more comprehensive coverage
- Duration: Length of storage for only comprehensive coverage
- Lender Requirements: If you have a car loan financing your vehicle, your lender may dictate certain coverages
Choosing Insurance Providers
When choosing a car storage insurance provider, it is essential to:
- Assess insurance options and coverage details.
- Check for flexible, seasonal policies.
- Review customer service ratings.
- Understand customer service policies.
- Compare pricing and get quotes.
A comparison of most insurance companies will help you find the most appropriate insurance policy for your car in storage.
Additional Services and Add-Ons for Car Storage Insurance
With car storage insurance, it’s not just about the basic coverage options. Many insurance providers offer additional services and add-ons that can enhance the protection of your stored vehicle. Here are some noteworthy add-ons to consider:
Roadside Assistance
Even if your car is stored, emergencies can happen. Roadside assistance can be a lifesaver in such situations, offering services like towing, jump-starts, and more.
Glass Coverage
If your stored vehicle suffers glass damage, this add-on will cover the cost of repairs or replacement for windshields and windows.
Custom Parts and Equipment Coverage
For those storing classic or customized cars, this coverage ensures that any custom parts or equipment are insured, offering you complete peace of mind.
Rental Reimbursement
Should your stored vehicle require unexpected repairs, this add-on covers the cost of a rental car, so you’re not left stranded.
Seasonal Adjustments
Some policies allow for seasonal adjustments to your coverage, which is particularly useful if you’re storing a classic car during the winter months only.
By understanding these additional services and add-ons, you can tailor your car storage insurance to meet your specific needs, ensuring your vehicle is fully protected while in storage.
Preparing Your Vehicle for Storage: Basic Maintenance and Security Tips
Properly preparing to put your car in storage ensures its protection over a certain period and helps maintain its longevity while in storage.
Before storing your vehicle for an extended period, check off the following to-dos.
- Clean the exterior of your vehicle using mild soap and water
- Check the tire pressure.
- Topping off the fluids such as oil, coolant, brake fluid, and transmission fluid
- Disconnect the battery
- Inflate the tires to the recommended pressure and use tire covers to protect them from environmental factors.
- Install additional security measures, such as a car cover, security system, or steering wheel lock.
- Secure comprehensive insurance coverage to protect your stored vehicle against theft, vandalism, and environmental damage.
Conclusion
When you store your vehicle, it’s important to have comprehensive coverage that goes beyond liability and collision policies. Comprehensive coverage protects against risks such as theft, vandalism, and fire.
However, insurance is just one aspect of ensuring your vehicle’s safety. Choosing a secure storage location is equally important.
Options like Neighbor, a peer-to-peer storage marketplace, offer options with private garages in residential areas with a significantly lower crime risk than traditional storage facilities, which provides an additional layer of protection for your vehicle.
Frequently Asked Questions
What Does “Storage” Mean in Insurance?
Storage in insurance refers to the reduced coverages for a vehicle owner when their car is in storage for a long time since driving-related events won’t occur and collision coverage won’t pay damages.
What Is Garaged Car Insurance?
Garaged car insurance is a policy that will pay for damage or theft to your vehicle while it is stored in a specific location overnight. It safeguards against accidental loss or damage to your vehicle and its parts while in the policyholder’s care.
Can I Take Insurance off My Car if I’m Not Driving It?
If you plan to store your car for the long term, it’s required to have continuous coverage on your vehicle even if you are not driving it.
