Best Car Insurance for a Stored Vehicle
Clearsurance.com recently released its top 10 list of best insurers for cars in storage. When a vehicle is in storage, it needs insurance protection, but the needs differ from those of a car that’s driven.
When a vehicle is in storage, it needs comprehensive coverage. Since it’s not being driven, it doesn’t need collision insurance. Comprehensive coverage is the type of coverage a car in storage needs.
Top Insurance Companies for a Car in Storage
The top 10 companies for cars in storage are as follows:
- Allstate
- Erie Insurance
- Travelers
- State Farm
- Progressive
- Liberty Mutual
- USAA
- Geico
- Nationwide
- The Hartford
Allstate received the top ranking for insurance options for vehicles in storage with comprehensive coverage starting at $40. It’s praised for its flexible coverage options and customer service.
Erie Insurance offers plans that cost even less than Allstate, starting around $35 per month. It has excellent regional support but doesn’t write policies outside of a few states.
Travelers rounds out Clearsurance.com’s top three. It boasts excellent financial standing and diverse discount options.
Save on Car Insurance Premiums for a Stored Vehicle
Carrying lower coverage levels makes sense for a car that’s not in use. Drivers may be required to carry liability coverage to have a car registered, even if they don’t drive it.
Even though minimum requirements for liability coverage are insufficient for real-world driving situations, they’re more than sufficient for a car that’s sitting in storage. Carrying minimum limits can help drivers save,
Adding comprehensive insurance will result in coverage for the car while it is in storage. Comprehensive coverage provides protection from financial losses resulting from storm damage, flooding, vandalism, and fire.
If something were to happen to the building where a car was stored, property insurance would cover the building, and comprehensive insurance would cover the damage to the vehicle. If the car is stored in a home garage, the homeowners insurance will cover the building; if it’s stored in a facility, their commercial insurance would cover the building.
Discounts are another way to save on insurance premiums.
Auto Insurance Discounts for a Stored Vehicle
Some insurance companies will offer a stored vehicle discount. A vehicle in storage faces far fewer risks than a car that’s on the road every day, so it makes sense that it would cost less to insure.
Several discounts are commonly offered, and policyholders can often stack them to receive greater savings. According to Clearsurance.com, the following discounts can help car owners save:
- Antitheft – An antitheft discount can help policyholders save between 5% and 25%.
- Bundling – A bundling discount typically results in savings of between 5% and 25%.
- Low Mileage – Low mileage discounts can lead to discounts between 10% and 30%.
- Deployment – A deployment discount can yield savings between 5% and 20%.
- Garaging – A vehicle kept in a garage may be eligible for a discount between 7% and 20%.
Both garaging and deployment discounts can pertain to vehicles in storage. Often, when someone is deployed, they put their car in storage. Even if it’s not stored, it won’t be driven by the person deployed, so it presents minimal risk to the insurance company.
Canceling Insurance Coverage for a Stored Vehicle
Drivers may be tempted to cancel coverage for a vehicle that is stored. That’s not a good idea, in most cases, though.
Melanie Musson, a nationally recognized car insurance expert with Clearsurance.com, explains, “Canceling coverage has negative ramifications. However, cutting coverage back to the bare bones can be a good way to save money while remaining compliant and low-risk.”
Insurance lapses reflect negatively on vehicle owners. A lapse in coverage can categorize a driver as a higher risk to insurance providers. So, when the driver wants to reinstate overage, it will often be more expensive.
In most states, a vehicle must have insurance coverage to be registered. Another consideration is whether there’s a loan. Lenders require borrowers to carry full coverage. So people with a vehicle loan will need to have coverage that complies with their loan requirements.
Read Clearsurance.com’s entire report here: Best Car Storage Insurance (Top 10 Companies Ranked).