2 Explained, Vehicle Storage Insurance Rent

Let’s say you put your convertible in storage during the winter months when you use your other car because it handles the weather better. Or maybe you’re re-building the engine on a classic car and you know it’ll be sitting in your garage for months while you work. Do you really need to keep your insurance on these cars when they’re off the road for a considerable amount of time?

It might be easy to cancel your insurance, but it may not be the best choice for you. Let’s take a look at the factors involved in vehicle storage insurance.

What is vehicle storage insurance?

Actually, there isn’t a type of insurance called “vehicle storage insurance”. When people talk about insurance for stored cars, or “parked car insurance”, what they usually mean is that they will cancel liability and collision, and any additional endorsements they have on their policy, and just keep comprehensive coverage.

How does car insurance storage work?

Storage insurance for cars assumes that your car is never driven and isn’t parked on a public road — which would be illegal in many states without liability insurance. So the first thing that you need to take care of is getting your car off the road and in a safe place for the duration of the storage period. A locked garage is one good option.

Do I need to follow the state’s minimum coverage when getting vehicle storage insurance?

State minimum insurance requirements are largely related to liability coverage — that is, coverage that protects the other driver and his or her car in an accident that is your fault. Some states also require you to have uninsured/underinsured motorist coverage, in case you hit someone who can’t pay out for repairs.

But that’s not what you need when you have a stored car, since you won’t be driving it. It is legal to not have liability on your car as long as that car is not parked on a public road or driven — and if you also cancel your registration and turn in your license plates. So if you are definitely storing your car, and don’t intend to drive it a single time in the near future, you can cancel your liability coverage when you cancel your registration and plates.

It makes sense to check with your state’s local DMV office to see if there are additional requirements where you live. Most states have a specific procedure for the temporary surrender of license plates — note that there may be a small fee involved. In New York, for example, you may surrender your plates for a season and cancel your liability insurance, but there will be a charge of $25 when you pick up new plates later on.