When cars are put in storage- whether it be for an extended period due to an extended holiday, temporary relocation, or simply because they are seasonal vehicles- many vehicle owners agonize over just how necessary that insurance really is. This article will give you a detailed look at reasons for keeping insurance on a stored car, types of coverage that will be needed in these situations and prospective risks and advantages.
Why You Should Keep Insurance on a Stored Car?
A coverage interruption
One of the main reasons is to avoid a gap in coverage. While an insurance policy is cancelled, there is a gap in your history of insured driving. This can mean a number of negative consequences:
Higher Premiums
Insurance firms often regard drivers with lapses in coverage as higher risks. Thus when you renew again for insurance it will usually mean higher premiums. This is because people with lapses in coverage may be a sign of financial instability or irresponsibility.
Difficulties in Getting Insurance
If there has been a break in your insurance record you may run into resistance from some companies and be handled more firmly than under normal circumstances. By continuously maintaining adequate coverage, you make sure that you remain in the good graces of the insurance people.
Protections Against Damages Not Caused by a Collision
Even while a vehicle is being held without being driven, non-driving causes may still do it harm in a number of different ways:
Theft
Thieves can make off-even with your vehicle in presumably secure storage. Comprehensive coverage will help alleviate your financial losses should you lose a car this way.
Vandalism
Parked vehicles are popular targets for vandals. Insurance is available to cover the cost of repairs made necessary due to vandalism.
Fire
A fire can start right inside a storage facility or garage,resulting in the total loss of your vehicle. Comprehensive will also protect you against damage from fire.
Though they are events of nature, insured vehicles can be damaged or destroyed by things like floods, hurricanes or earthquakes. The insurance is a guarantee you won’t be left holding the bag if one of these unpredictable acts happens to occur.
Falling Objects
Items falling from shelves or damage to the storage facility walls could injure your car. Full coverage insures against damages of this and other types.
Lienholder Requirements
If your car is financed, the lender will more than likely require you to obtain coverage on the vehicle until the loan is completely repaid. While the preferred result may be mandatory insurance, facilities that are enabled for free placement of policies usually carry a heavy administrative cost and adverse contractual terms. The lender’s policy only covers its interest in the car, which leaves you unprotected should anything happen to it.
The Types of Insurance Coverage for Stored Cars
When storing your car, it may not need the same level of coverage as a vehicle in regular use. Keep these results in mind.
Comprehensive Coverage
: Comprehensive insurance is very important for a stored car. It protects against almost anything that might happen to the vehicle apart from a collision with another vehicle: theft, vandalism, fire and natural disasters such as hurricanes or earthquakes all fall under comprehensive coverage. Therefore your car will be covered for most potential damages during the time it is not being driven. Comprehensive insurance is often referred to as parked car insurance storage insurance.
Liability Coverage
Liability coverage is generally not needed for a stored car, such as the damage and injuries get from road accidents don’t count when you’re not driving the car. However, if you plan to occasionally drive the car from storage or otherwise take it out for short trips, then you may want to keep liability coverage, so that in the event of a traffic mishap someone can’t take everything you own as compensation.
There is no need to buy collision coverage for a stored car because this policy only covers accidents, and collisions with other vehicles and objects. In the case of a vehicle that never moves, you can usually get along without this coverage to save money on your insurance premiums. However, as with property damage liability, if you will be driving the car occasionally in order to keep up on repairs or visiting town after long periods–then collison coverage may be needed._________________
The Cost of Insuring a Stored Car
Insuring a stored car comes down to primarily maintaining comprehensive coverage. According to the National Association of Insurance Commissioners comprehensive coverage is indeed the cheapest part of vehicle insurance. In Great Britain, the average annual cost for comprehensive cover is around £160; as a monthly figure this comes out to approximately £13.____________________
However, insurance premia hinges on a number of variables, including:
Location
Higher crime rates can mean greater expense in terms of asphalt or brick outdoors parking protection. For instance, a car stored in an urban location will cost more to insure than one located out in the country.
Value of car
High-value vehicles may command higher insurance pricing. Luxury or classic cars, for example, can require greater coverage in addition to their own higher replacement and repairs costs.
Storage Facilities
Auto insurance costs usually are lower if automobile is kept in a secure environment, such as a climate-controlled building with 24-hour surveillance and alarms._______________
Car Storing Preparations In Advance
Advise Your Insurance Company
Let your insurance company know you plan to store your vehicle. It’s standard operating procedure to adjust coverage for the storage period at times like this, making sure they don’t steal money from you by hiking prices unnecessarily when in fact everything continues under a normal.______________________
Change Your Address
The address with your insurance company should be changed if you are keeping your car at a different place and for a different purpose than usual. Your premium may be higher because of the risk factors in an area that is stored. By providing accurate information, you help to guarantee that your coverage is both valid and efficient.
Consider a Lay-Up Policy
Some insurance companies offer lay-up policies specific to vehicles that won’t be driven for an extended period. Comprehensive coverage is generally included but liability and collision cover is suspended under these policies. Lay-up policies are a worthwhile investment in terms of cost-effectiveness compared to not providing any protection at all.
Prepare Your Car for Storage
A car that is properly prepared for storage can prevent damage to its insurance record. Here are some steps you can take:
Clean the Vehicle
Wash and wax the exterior, and clean inside in order to prevent soiling from dust or debris. This can keep the paint and interior materials from breaking down too fast.
Maintain Fluid Levels
Top off all fluid levels including oil, coolant and brake fluid, in order to avoid corrosion and other problems. Fresh, clean fluids protect the engine and other parts on your car.
Inflate Tires
Make sure that your tires are properly inflated in order to avoid flat spots. As an alternative, you could remove the tires and store the car on blocks, in order to relieve pressure.
Disconnect the Battery
Disconnecting the battery or removing it entirely prevents over-drainage. A battery tender keeps your battery charged without overcharging it.
Use a Car Cover
Purchase a high-quality car cover to protect the vehicle from dust and debris. A car cover can also prevent minor scratches as well as shield the car from UV damage.
Concluding
It’s wise to keep insurance on a stored car so that you can avoid potential financial disasters and protect your investment. Car insurance lpg Let’s get one thing straight: without an comprehensive policy to protect you from non-collision damage, and keeping your policy in full operation to prevent that temporary “lapse” that may just yield higher premiums next time around but never brings improvement, then what will happen? By understanding the kinds of coverage needed and taking steps to get your car ready for its long hibernation, putting it in storage locations of this sort will ensure that your auto remains secure.