There may be many reasons to have a car in storage. Perhaps you need to go out of state or country and cannot take the car with you. It may even need repairs that you cannot afford right now. What do you do about insurance while the car is in storage?
How Insurance Companies Define “Storage”
If the car is operable and you keep it stored in a garage and just drive it occasionally, you will still need to have regular insurance on it. If you plan to store the vehicle, this means it will not be driven again until you notify your insurance company.
I have a 1998 Dodge Dakota that belonged to my husband. When he passed it became mine. Right now, it is stored in the garage because it has some mechanical issues. The truck is like that credit card commercial. As far as a monetary value, it isn’t worth much, but the memories make it priceless to me. People store vehicles for that reason, too.
The truck used to have comprehensive and collision insurance on it. When it was no longer drivable, I considered just dropping the insurance and storing it in the garage. The garage has homeowner’s insurance, but homeowners insurance does not cover any vehicles that can be licensed for the street.
What Is Covered Under Storage Insurance
My insurance agent offered me a storage insurance policy. The truck is covered for damages in the event that the garage falls on it, catches on fire or gets destroyed in a storm. It is also covered in case someone breaks into the garage and vandalizes or steals it.
If the vehicle is in storage because you are working on it, discounted storage insurance will not cover these repairs, unless you put new tires on it and someone steals them or they are destroyed while inside the storage area.
Getting discounted insurance for a car in storage is as simple as calling your insurance agent and telling them the vehicle is going to be stored. They may ask you the reason for the storage. It can be anything from needing repairs to it not being needed at the moment.
Why Consider Storage Insurance for Your Car?
The discounted storage insurance on my truck costs less than half of what the insurance to drive it on the road cost. I know that the vehicle is covered for any damages while it sits in storage waiting to be fixed. If it is destroyed or damaged while in storage, it is covered up to the book value. That gives me peace of mind.
If you need to store a vehicle for whatever reason, do not just drop the insurance on it. Call your insurance agent and ask for a quote on storage insurance. The discounted insurance will ensure that your vehicle remains protected while it is in storage.
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