Parked Vehicle Insurance: What To Know & How To Save (2024)
If you're looking for parked car insurance, what you probably need is storage coverage. This kind of coverage protects your vehicle while it is parked for an extended period of time and no one is driving it. Most states require car insurance, and storage coverage can help you fulfill the requirement while saving money.
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Kalyn Johnson
Insurance Claims Support & Sr. Adjuster
Kalyn grew up in an insurance family with a grandfather, aunt, and uncle leading successful careers as insurance agents. She soon found she has similar interests and followed in their footsteps. After spending about ten years working in the insurance industry as both an appraiser dispatcher and a senior property claims adjuster, she decided to combine her years of insurance experience with another...
Insurance Claims Support & Sr. Adjuster
UPDATED: Jul 6, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Jul 6, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Parked car insurance is better known as in-storage coverage
- Some companies will allow you to cancel collision and liability and keep your comprehensive, so that your parked car is safe
- There are risks involved with reducing your policy to storage coverage, especially if you plan on parking your car on a public street
Each state in the U.S. has laws requiring a minimum amount of insurance for a car to be driven legally on public roads. Generally speaking, minimum coverage is much more affordable than comprehensive or collision coverage.
However, what happens when you rarely use your car? If your car merely sits for weeks on end, you’re probably wondering if parked car insurance exists.
The good news is that you can save money by comparing car insurance options if you don’t use your vehicle very often. Even if you drive very rarely, you should still have insurance on your automobile. If you don’t, you won’t be able to drive without risking serious consequences.
If you have a vehicle that you rarely use and you want to find affordable parked car insurance, shopping around for rates can save you a lot of money. If you want to see what quotes might look like for you, enter your ZIP code into our free tool.
Is there such a thing as parked car insurance?
Most companies have something called storage coverage, which some people may refer to as parked car insurance.
Storage coverage is meant for cars that are either not running or will remain parked and not driven at all. This coverage skips liability and collision and instead offers comprehensive protection. Storage coverage is meant to protect your vehicle from damage that commonly occurs to parked cars.
That damage includes the following occurrences:
- Weather
- Theft
- Vandalism
- Natural disasters
- Fire
- Floods
- Animal damage
If you park your car in one place for the vast majority of time, you probably qualify for this insurance. While your rates will decrease by as much as 80%, the best way to save money is to store your car off the street.
This is a great option for collector cars you don’t drive, vehicles in need of repair, and enlisted military members who have been deployed. Sometimes, you can suspend your coverage if you don’t plan on using your car for a while.
Bear in mind that if you want to drive the car at all, you will need to add liability coverage back onto the policy first.
Do you really need insurance on your parked car?
While you might think skipping insurance on a parked car is a good idea, it likely isn’t.
Even if you only occasionally use your car for driving, you need to have your state’s minimum coverage.
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Recommended wheel size 21 inch 21 inch
Towing capacity 11,000 lbs 7,700 lbs
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If you’re caught driving without insurance you’ll face consequences, mostly in the form of fees. It varies by state, but some states will suspend your license and registration.
You should also have some sort of coverage to avoid a lapse in your insurance. Having a history of a lapse in coverage is a negative mark against you when you later apply for insurance. It can also leave you with higher rates.
What happens if someone hits your parked car?
Unfortunately, there’s no such thing as insurance for hitting a parked car. This is one of the biggest risks of having nothing but storage coverage on your vehicle. If someone hits your parked car and you didn’t have it in a secured location, like a garage, it will be treated like a regular collision claim.
In fact, according to the National Safety Council, accidents with parked cars are a growing concern due to distracted driving.
This means that you’ll have to pay out of pocket for all the damage to your car. One of the requirements for storage coverage is that you keep your vehicle safely out of harm’s way. If your car is hit by someone without insurance, you won’t have any protection.
One of the reasons for this is that storage coverage is meant to be as affordable as possible. You would need collision or underinsured/uninsured insurance to cover damage from an accident, which costs more than storage coverage.
Another reason you’ll be on the hook for the damage is because it’s illegal to park your car on a public street if you don’t meet the minimum requirement for your state.
If someone hits your parked vehicle, and they have insurance, you’ll be able to file a claim with their insurance company.
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How do you buy parked car insurance?
To obtain insurance coverage for your parked car, the best thing you can do is to call your company and ask if they offer that type of plan.
Most companies will have their own regulations concerning a parked vehicle. For example, many companies require that the car remain in storage for 30 days before you can obtain storage coverage.
If you would like storage coverage, try the following steps:
First, you will need a policy with the company in which you’re interested. Most insurance companies will require you to have one vehicle insured at your state’s minimum obligation before they allow a second vehicle to drop below that standard.
Next, you need to own the vehicle outright. Cars that are either leased or financed through a loan require a certain level of insurance protection, and you’ll violate the terms of your agreement if you revert to storage coverage.
Finally, you may need to cancel or change your registration. If you drop below the minimum amount of insurance that your state requires, but keep your registration, you might incur a fine. You may be able to instead register the car as non-operational instead.
Parked Car Insurance Companies
Not all companies offer storage coverage, but most of the largest do. If yours doesn’t, consider it an opportunity to shop around for less expensive parked car insurance quotes.
The good news is that most companies offer some form of storage coverage. For example, GEICO parked car insurance is easy to obtain, especially for deployed military members.
USAA parked car insurance is equally as good for deployed military members, especially if their car remains parked on a base.
State Farm parked car insurance requires canceling your collision and liability and keeping only your comprehensive coverage. Progressive offers the same deal for parked vehicle storage.
Of course, you should always check your state requirements. For example, for states like Texas, California, and Florida, parked car insurance regulations vary greatly.
Case Studies: Illustrating the Importance of Insurance Coverage for Parked Vehicles
Case Study 1: The Collector Car
John owns a classic vintage car that he rarely drives. He decides to store it in his garage for an extended period. John contacts his insurance company and asks about storage coverage. The insurance company offers him a comprehensive coverage plan specifically designed for parked cars.
This coverage protects his collector car from damage that commonly occurs to parked vehicles, such as theft, vandalism, or damage from natural disasters. By opting for storage coverage, John saves money on insurance premiums while ensuring that his prized possession is protected.
Case Study 2: The Deployed Military Member
Samantha, an enlisted military member, receives orders for deployment overseas. She knows she won’t be driving her car for several months and wants to find affordable insurance options. Samantha contacts her insurance provider and inquires about storage coverage.
The provider offers her a specialized plan for deployed military members, allowing her to suspend the liability and collision coverage while retaining comprehensive protection for her parked vehicle. By choosing this option, Samantha reduces her insurance costs significantly while ensuring that her car is covered in case of any unexpected damage.
Case Study 3: The Rarely Used Vehicle
Emily owns a second car that she rarely uses. She keeps it parked in her driveway for most of the year. Emily decides to explore insurance options for her parked vehicle to avoid any lapses in coverage. She contacts her insurance company and inquires about storage coverage. The company offers her a plan that provides comprehensive protection for her car while it’s not in use.
This coverage safeguards her vehicle against risks like theft, fire, or damage caused by falling objects. By maintaining insurance on her rarely used car, Emily avoids legal consequences, such as license suspension, and ensures that she won’t face higher rates due to a lapse in coverage.
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Find Affordable Parked Car Insurance Today
It’s possible to find a kind of parked car insurance known as in-storage coverage. Many companies will allow you to cancel everything but your comprehensive coverage to keep your parked car safe.
When you want to see parked car insurance rates, you should shop around for the best prices. If you’re ready to see what prices might look like for you, enter your ZIP code into our free tool.
Frequently Asked Questions
Do i need insurance for a parked vehicle?
Yes, even if your vehicle is parked and not being driven, it’s generally recommended to have insurance coverage for it. Insurance can protect your parked vehicle from various risks, such as theft, vandalism, natural disasters, or damage caused by other vehicles.
What type of insurance coverage do I need for a parked vehicle?
The specific type of insurance coverage you need for a parked vehicle depends on your circumstances and the level of protection you desire. Comprehensive insurance is typically the coverage of choice for parked vehicles, as it provides protection against non-collision events like theft, vandalism, fire, and weather-related damage.
Can I save money on insurance for my parked vehicle?
Yes, there are ways to save money on insurance for your parked vehicle. Consider the following tips:
- Opt for a higher deductible: Choosing a higher deductible can lower your insurance premium, but be sure you can afford to pay the deductible if you need to make a claim.
- Bundle policies: If you have other insurance policies, such as home or renters insurance, consider bundling them with your parked vehicle insurance to potentially qualify for discounts.
- Shop around: Get quotes from different insurance providers to compare prices and find the most competitive rates for your parked vehicle coverage.
- Consider usage-based insurance: Some insurance companies offer usage-based or pay-per-mile insurance, which can be cost-effective if you don’t drive your vehicle frequently.
Can I suspend insurance for my parked vehicle to save money?
Depending on your insurance provider and the regulations in your area, you may be able to suspend or reduce coverage for your parked vehicle if you won’t be using it for an extended period. However, keep in mind that leaving your vehicle uninsured leaves it vulnerable to risks like theft or damage from unforeseen events. Discuss the options with your insurance provider to determine the best course of action.
Is it legal to have an uninsured parked vehicle?
The laws regarding insurance requirements for parked vehicles vary by jurisdiction. In some areas, it may be mandatory to have insurance coverage for your parked vehicle even if it’s not being driven. Check with your local Department of Motor Vehicles or insurance regulatory authority to understand the specific requirements in your location.
What should I do if my parked vehicle is damaged or vandalized?
If your parked vehicle is damaged or vandalized, you should contact your insurance company to report the incident and initiate the claims process. Take photos of the damage and provide any necessary documentation requested by your insurer. They will guide you through the necessary steps to assess the damage and help you with the claim settlement.
Can I remove coverage from my parked vehicle if it’s in storage or not in use?
If your parked vehicle is in storage or not in use for an extended period, you may consider adjusting your coverage. Some insurance companies offer storage or “laid-up” policies specifically designed for vehicles not in use. These policies typically provide limited coverage at a reduced premium. Contact your insurance provider to inquire about the options available for your situation.
Should I notify my insurance company if I no longer drive my vehicle?
Yes, if you no longer drive your vehicle, it’s important to notify your insurance company. They can guide you on the appropriate steps to adjust your coverage or explore other insurance options that better align with your current situation. Failure to inform your insurer about changes in vehicle usage could potentially result in coverage issues or claims denial.
Are you looking for free insurance quotes?
Your one-stop online insurance guide. Get free quotes now!
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Kalyn Johnson
Insurance Claims Support & Sr. Adjuster
Kalyn grew up in an insurance family with a grandfather, aunt, and uncle leading successful careers as insurance agents. She soon found she has similar interests and followed in their footsteps. After spending about ten years working in the insurance industry as both an appraiser dispatcher and a senior property claims adjuster, she decided to combine her years of insurance experience with another...
Insurance Claims Support & Sr. Adjuster
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.