What is parked car insurance?| Insurance.com

What is insurance for a parked car?

Parked car insurance, also known as storage coverage, is a way to insure a vehicle that will be parked for an extended period of time. Rather than provide full coverage, these plans are comprehensive-only coverage policies. They cover things like:

Theft
Fire
Flooding and hail damage
Glass breakage
Damage caused by an animal

You won't have liability coverage or collision coverage, both of which protect against damage that occurs while driving.

The biggest benefit of switching to storage coverage is that your premiums could be much lower, especially if you currently have full coverage. With parked-car insurance, you drop liability and collision coverage.

One thing to keep in mind is that if you have parked car insurance, your car should be parked in a location away from traffic – preferably in your own private garage. If you plan to park on a public road, you generally must have liability insurance, which parked car insurance usually does not include.

How much does parked car insurance cost?

The average cost of comprehensive insurance is $451 a year, which is about $38 a month, according to Insurance.com rate data. This amount is based on a $500 deductibleThe deductible is the amount you pay out of pocket for a covered loss when you file a claim.; a higher deductible will reduce the premiumThe payment required for an insurance policy to remain in force. Auto insurance premiums are quoted for either 6-month or annual policy periods.. How much you pay will depend on:

The make and model
Where you live (weather and crime)
The storage location (indoors or out)

This coverage has a deductible associated with it; the amount of the deductible will affect the amount you pay for coverage. The average rate listed is for a $500 deductible; a higher deductible will result in a lower cost.

Is insurance required when your car is parked?

Yes, you need insurance on a parked vehicle in most cases. State laws vary, but most states require insurance on all registered vehicles.

State laws vary on whether you can legally carry comprehensive-only coverage without surrendering your vehicle's registration. In most states, you must turn in your plates or cancel your registration if you drop liability coverage. Contact your state's department of motor vehicles or your insurer to confirm the rules that apply to your vehicle before making changes.

There are risks associated with being uninsured:

Your car could be stolen or damaged by a storm
A lapse in insurance can result in higher rates later
You could face fines or penalties if your state law doesn't allow comprehensive-only insurance
You could be ticketed if you even pull an uninsured car into the street

TIP: It's best to keep your car insured at all times to avoid penalties. Review the insurance laws in your state before making any changes to your coverage.

What type of coverage do you need for a parked car?

A parked car needs all of the insurance coverage required by law in your state, unless you have taken the appropriate steps to reduce your coverage to a parked or in-storage car insurance policy, and it is permitted by state laws. Parked car insurance means carrying comprehensive coverageComprehensive coverage helps pay for damage to your car caused by events other than a collision, such as theft, fire, vandalism, or natural disasters. It is subject to a deductible. only. Liability, collision and uninsured motorist coverage are all excluded, as shown in the table below.

Coverage	What it covers	Included in a parked car policy?
Liability	Injuries and damage to others when you are at fault	No
Collision	Damage to your own vehicle resulting from a collision	No
Comprehensive	Damage to your vehicle from non-collision events like weather or theft	Yes
Uninsured/underinsured motorist	Injuries or damage to you/your car in a collision with an uninsured/underinsured driver	No

Note: This type of policy does not meet state minimum insurance requirements, nor does it meet lease or finance agreement requirements.

How to get parked car insurance

To get parked car insurance, call your insurer directly and ask about storage coverage or comprehensive-only policies. Most insurers do not offer this option online, so a phone call is required. You may need to confirm that your car has been parked for at least 30 days, though this requirement varies by insurer.

Before selecting a parked car insurance policy:

Ensure you don't have a loan or lease. If you are currently leasing, or your car is not paid off, you probably won't be able to switch to parked car insurance.
Check your state's laws. Find out what your state's laws are regarding comprehensive-only coverage and parked car insurance.
You may need to cancel your registration. In most states, you must have liability coverage if your car is registered. You may need to turn in your plates.
Contact your insurance company. When you are ready to make the switch, contact your insurer. You may not be able to switch your coverage online.

How to switch back to full coverage after storage

Switch your coverage back to include at least liability insurance to the comprehensive coverage before you take it out of storage by contacting your insurance company either over the phone or online. Liability is the minimum required in most states to drive on public roads, although some states also require personal injury protection and uninsured/underinsured motorist coverage; adding collision coverage completes your full coverage policy.

Contact your insurer at least a few days before you plan to drive the vehicle to allow time for policy changes to take effect.
Confirm your state's registration requirements. If you surrendered your plates when switching to storage coverage, you will need to re-register the vehicle before driving it on a public road.
Reinstate liability and collision coverage. Your insurer can restore your prior coverage levels or help you select new limits.
Confirm that your lender or lessor's minimum coverage requirements are met if you have a loan or lease.
Obtain proof of insurance before operating the vehicle on a public road.

What happens if someone hits your parked car?

If someone hits your parked car, coverage depends on whether the other driver is identified and insured. The three most common scenarios and their outcomes are listed below.

Another driver goes off the road and hits your legally parked car on private property. The other driver's liability insurance should cover the damage.
Your car is hit while parked on the road. The other driver's insurance is responsible, but you may still face fines if your insurance doesn't meet the state's minimum requirements to be on public roads.
Your car is hit by a driver who leaves the scene. If your car is damaged in a hit-and-run, you will have no coverage for the damage unless the driver is found.

What should I do if someone hit my parked car and left a note?

If someone hit your parked car and left a note, follow these steps:

Read the note. Get the contact information and any details about the accident from the note.
Document the damage. Take photos of the damage to your car and the note.
Contact the person. Reach out to the person who left the note to discuss the incident and get their insurance information.
Notify your insurance. Inform your insurance company about the accident and provide them with the details from the note and photos.
File a police report. Depending on the damage, you might need to file a police report, especially if your insurance company requires it.

These steps will help you handle the situation properly and get your car repaired. Note that if you do not carry collision coverage and the driver is not found, you will have to pay to repair your car.

FAQ: Insurance for a car in storage

Can I file a claim with insurance for a parked car?

Yes, you can file a claim for a parked car if you have an active comprehensive coverage policy and the damage was caused by a covered event such as a storm, theft, vandalism or fire. A parked car policy does not include collision or liability coverage, so damage caused by a collision is not covered unless the at-fault driver is identified and their liability insurance pays.

Do you have to insure a car that is not being driven?

Yes, most states require insurance on any registered vehicle, even one that is not being driven. The single documented exception is New Hampshire, though state laws are subject to change and you should verify your state's current requirements before canceling coverage.

Can I cancel storage coverage for my parked vehicle?

Yes, you can cancel the insurance, but you may face penalties, including fines or revocation of your registration. If you have a loan or lease, your lender may force-place an insurance policy to protect its interests, which will be charged to you. Additionally, if you cancel your insurance, you will experience a lapse that could result in higher costs in the future.

Can you park your car on the road without insurance?

No, you cannot legally park a car on a public road without at least the minimum required liability insurance in your state. A parked car policy (comprehensive-only coverage) does not include liability insurance and does not satisfy this requirement. If your car is uninsured or only carries storage coverage, it must be kept in a private driveway or garage.