Do You Need Insurance for a Car in Storage?

Apr 25, 2023 2 min read

Are you wondering if you need insurance for the car that’s been sitting in storage? Or do you have an eye on a fixer-upper? If you have a car in storage, legally you’re not required to have car insurance if it remains there. Though since there is always some inherent degree of risk when it comes to damage or vandalism, you may want some sort of auto insurance policy to cover your stored car from the unexpected.

Does My Car Need Insurance If I’m Not Driving It?

If your car stays in storage, most states won’t require you to carry insurance, though you are required to carry at least the minimum amount outlined by your state to register your vehicle if the vehicle is registered and tagged for road use. The minimum coverage usually consists of liability coverage, which covers expenses in case someone else is injured by your vehicle.

Should I Cancel Insurance While My Car Is in Storage?

In most cases, the risks that come with cancelling your insurance policy will likely outweigh the short-term savings. 

1. Coverage Gaps in Your Insurance History

When you cancel your insurance coverage, you’re opening yourself up to a lapse in coverage. When it’s time for you to reinstate your insurance coverage, insurers may underwrite you as high-risk for having a vehicle in your possession that’s had no coverage, causing your insurance rates to increase and leading to a higher premium.

2. No Protection Against Unexpected Damages

You may have parked your vehicle in a storage unit, but leaving your car unmonitored could leave you susceptible to theft. Additionally, if someone were to hit your parked car, intentionally or not, you could be left paying for repairs out of pocket. Even if your storage facility has a high-level of security, Mother Nature doesn’t follow the rules. A severe weather storm consisting of hail, tornados or fallen trees could damage your vehicle, and without proper coverage, you’d be left to pay the bill.

3. Policy Violations for Financed or Leased Cars

If your stored car is financed or leased, odds are the lender requires some degree of auto insurance coverage, so cancelling your policy isn’t likely to be an option without financial consequences.

What Insurance Covers a Parked Car?

Though ‘parked car insurance’ isn’t really a coverage option, most insurers will allow you to reduce your coverage. They may require that it’s stored for a minimum amount of time — usually 30 days — and you may be required to cancel your car registration since proof of insurance is required in many states before registering a vehicle.

Depending on your state’s laws, you could reduce your coverage to liability or comprehensive-only coverage.

Comprehensive-Only Coverage for Cars in Storage

If your car is sitting in storage, comprehensive-only coverage is a great car storage insurance option. This policy type covers the costs (minus deductible) when your car is damaged by something other than a collision. This includes fire, theft, hail, vandalism, etc.

Whether It’s in Storage or on the Road, We’ve Got You Covered.

Whether you’re putting your 1970s Mustang in storage or getting ready to hit the road in your 2023 Toyota, we’ve got you covered. Connect with a local Farm Bureau agent today to get the customizable coverage you need.

Want to learn more?

Contact a local FBFS agent or advisor for answers personalized to you.