Best Insurance for Stored Vehicles: Allstate, Erie, Travelers
Clearsurance.com recently published a review on the best insurance providers for cars in storage.
Stored cars need insurance, but they don’t have the same risks as a car that’s being used regularly on the road. Stored car policies include comprehensive insurance, which covers the vehicle if it is damaged while it is parked.
Allstate was awarded the top rating with monthly premiums starting at only $40 a month.
Best 3 Insurers for Stored Vehicles
While Allstate took the top spot, Erie and Travelers came in as close runners-up.
Allstate is easy to work with as a policyholder. It’s easy to make policy changes and find answers to questions.
Erie Insurance has lower starting premiums than Allstate, at just $35 per month. They consistently rank among the top insurers and receive excellent customer service ratings, thanks in part to the ease of adjusting coverage. The most significant downside is that Erie Insurance is only available regionally and is not a national company.
Travelers has plans that start at $40 a month for stored vehicles. They’re a top choice for individuals who want to stack discounts and pay even lower premiums. Bundling and low-mileage discounts are common for stored vehicles.
Top Contenders for Stored Vehicle Insurance
The following companies round out the top 10 list:
- State Farm
- Progressive
- Liberty Mutual
- USAA
- Geico
- Nationwide
- The Hartford
Each car insurance provider has pros and cons, and just because a company is ranked number one doesn’t mean it’s the best company for every customer.
Melanie Musson, a nationally recognized car insurance expert with Clearsurance.com, explains, “Insurance companies calculate premiums differently, so each person’s individual demographics will result in a unique risk profile, which will affect rates differently across companies. The company with the cheapest premiums for one person may be the most expensive for another.”
Comparing rates provides the best insight into which company is the best fit for each vehicle owner.
Insurance Requirements for Stored Vehicles
Insurance laws are set by each state, so the requirements will vary depending on where the vehicle owner lives. Generally, storage insurance will include comprehensive coverage.
A vehicle that’s parked will not need collision insurance because it cannot cause a collision. However, it does need comprehensive insurance because outside forces could damage it. For example, vandalism, theft, and rodent damage are possible when a car is stored. Comprehensive insurance covers those risks.
Many states require that a registered vehicle have minimum liability insurance. Drivers hoping to avoid paying for liability insurance when a vehicle is stored may be able to file a non-use affidavit.
Sometimes, storage facilities require drivers to keep cars registered and fully insured to be stored there.
Premiums for Cars in Storage
Even if a car in storage must be insured for liability and comprehensive coverage, the risks are much lower than the risks of a vehicle that’s driven regularly. As a result, insurance premiums will be lower.
Insurance premiums reflect risk. The higher the risk, the higher the premiums. A stored vehicle is a low risk, so insurance premiums should be low. It’s essential to compare quotes to avoid overpaying.
Discounts provide an additional way to save. Some of the most common discounts include:
- Anti-theft
- Bundling
- Deployment
- Low Mileage
- Usage Based
Reasons for storing a car can vary. Sometimes, military members put their cars in storage while on deployment. Some individuals only drive their vehicle in the summer and store it for the rest of the year.
It usually doesn’t matter why a car is stored, because the risks are typically the same regardless of the reason.
Read Clearsurance.com’s entire report here: Best Car Storage Insurance.