If you do not regularly drive your car, such as when you take a long trip, move temporarily or are just storing the car for a season, then it is only natural that you would stop wondering whether an insurance policy with coverage the same as collision should be retained. Car storage insurance, also known as parked car insurance or comprehensive-only coverage, protects your vehicle when it is off the road.
In this all-encompassing guide, we’ll go through all there is to know about car storage insurance and provide a few other tips along the way-how important it is, what it covers, how you get it..
Why you should consider car storage insurance
A major reason for taking out car storage insurance is to avoid any gaps in cover. In order to avoid potential penalties, such as paying higher premiums or problems getting insurance when you decide to reactivate a policy, your insurance cover must be continuous.
Protection against damage from events other than collisions
When your car is parked and not moving, it nevertheless can be damaged in various ways other than collisions. These might include theft, vandalism, fire, natural disasters, falling objects etc. Car storage insurance covers such losses and makes sure that you won’t be out heavily if faced with unforeseen costs.
Lienholder Requirements
If you borrow money to purchase a car, your lender may require that insurance cover on the vehicle includes comprehensive until all of the loan is paid off. Failing to comply with this requirement may mean forced-placed insurance–typically more expensive and with less favorable terms.
Types of Insurance Coverage for Stored Cars
Comprehensive Coverage
This is the heart of car storage insurance. It protects your car from a wide variety of damage other than collisions, such as theft, vandalism, fire, natural disasters, and falling objects. Such insurance is essential for watching over your car while it’s in storage.
Liability Coverage
Not with standing the meaning of a vehicle for private storage, liability coverage is required if at any time in history, you intend to periodically remove the vehicle from its place of storage. Liability coverage shields you from financial responsibility if you cause injury to people or damage their things when driving.
Collision Coverage
Not for a placed product (or “car-over”) Collision coverage–which pays the cost for repairs to your vehicle after it has been hit by another car or object–need not necessarily be added onto a stored car.
How to Get Car Storage Insurance Inquire with your insurance company.
Contact Your Insurance Company
For car storage insurance, get in touch with your insurance provider and let them know your intent to place the vehicle in storage. They will advise you regarding policy changes that will allow comprehensive-only coverage, commonly known as car storage insurance.
Cut Your Coverage
Your insurance company can assist you in cutting your coverage to comprehensive-only, which is typically significantly less costly than full coverage. This means you retain critical protection for your vehicle while saving money on insurance premiums.
Consider a Lay-Up Policy
Some insurance companies offer specialized policies called lay-up or storage (or “garage”) policies for vehicles that will not be driven over an extended period of time. These policies generally provide comprehensive coverage, while suspending liability and collision coverages–a cost-effective means of insuring placed products.
Cost of Car Storage Insurance
On average, car storage insurance–which is virtually all comprehensive coverage and little else–is usually much cheaper than full coverage. In one recent year the average annual cost for comprehensive cover in English was probably about £160, making car storage insurance an affordable way to protect your vehicle when it’s not on the road.
Car storage insurance could work by keeping your vehicle safe from harm You can prevent interruption in your protection, protect against non-collision harm or comply with lender requirements on auto loans only if the comprehensive is working and intact. Find out about coverage options and see that your car stays safe through your insurance agent or company if you intend to store it for any length of time.