How do you handle insurance on a car you aren't currently driving? Whether you have it stored because it is currently inoperable, because you are away for a long period, or simply because it's just a seasonal; driver, you will need to consider your insurance options. The following guide can help you address this tricky situation.
Don't cancel all coverage
There are a few reasons to keep some sort of auto policy in place on a stored vehicle. First and foremost, it may be legally required in your state. If the car is still under financing, the bank may also require that you maintain full coverage. You will need to check with the state insurance board or your agent to verify. Second, a gap in your coverage can lead to higher rates later. If this is the only car you have insured, then it's vital to maintain some sort of insurance on the car so you don't end up with one of these problematic gaps.
Drop unnecessary coverage
You may have the option of dropping unnecessary coverage. This means drop liability and collision coverage, as well as any extra medical insurance or other umbrella policies you have added to you car insurance. This will leave you with comprehensive insurance, or comp coverage. This only covers damages to the vehicle, such as is it is vandalized or otherwise damaged in storage. Depending on the value of the vehicle, you may be able to drop this coverage to the lowest amount available, thus saving a lot of cash.
Verify what is covered
If you drop your insurance down, make sure you know what is covered. For example, your car may not be covered for things like fire damage, such as if the storage site burns down. If it is stored in your personal garage, this may not be an issue if your homeowner's policy covers the gap. On the other hand, it could be a major problem if you are storing at a rented facility or if you do not have a home or contents policy. In this case, you will need to check with your insurance agent to see if they offer a storage policy that is specifically aimed at stored vehicles.
When talking over the options with your agent, make sure to verify that you can easily reactivate your full policy when you are ready to drive again. This should be as simply as making a quick phone call. Talk to an insurance company for more help.