If for any reason you need to store your car somewhere, whether for a few months or an extended period, then vehicle storage insurance is essential to have on hand. To cater to the potential dangers that stored vehicles are exposed to–but not in regular need of precaution and safeguards against–this kind of coverage specifically protects stored cars. This article explains a little further what vehicle storage insurance does, what it might cover, and why you should get one.
Understanding Vehicle Storage Insurance
Definition and Purpose
Vehicle storage insurance, often referred to as “comprehensive-only coverage” or “parked car insurance,” is designed to protect cars that are not being driven. This coverage focuses on non-collision risks, providing financial protection against damages that can occur while the vehicle is stored. It is particularly useful for seasonal vehicles, cars that owners cannot use due to long-term travel, or vehicles kept as collectibles.
Importance of Vehicle Storage Insurance
Maintaining vehicle storage insurance is crucial for several reasons:
- Protection Against Unforeseen Events: Even in storage, vehicles are susceptible to damage from various sources. Storage insurance ensures that you are financially covered in case of these incidents.
- Avoiding Coverage Lapses: Keeping insurance active prevents lapses in coverage, which can lead to higher premiums or difficulties obtaining insurance in the future.
- Compliance with Lender Requirements: If your vehicle is financed, your lender may require you to maintain certain levels of insurance coverage, even when the car is not in use.
What Does Vehicle Storage Insurance Cover?
Non-Collision Damages
Vehicle storage insurance primarily focuses on covering damages that do not involve collisions. These include:
Theft
Even when stored in a secure facility, vehicles can be targeted by thieves. Comprehensive coverage under storage insurance protects you from financial loss if your car is stolen. This coverage typically includes:
- Replacement Cost: The insurance will cover the cost to replace your vehicle up to its market value.
- Parts Theft: If specific parts, such as tires or catalytic converters, are stolen, the insurance can cover the cost of replacement.
Vandalism
Vandalism can occur anywhere, including storage facilities. Coverage for vandalism includes:
- Repair Costs: Insurance will cover the expenses to repair damage caused by vandalism, such as broken windows, scratched paint, or damaged interiors.
- Prevention Measures: Some policies may offer discounts or benefits if you take steps to prevent vandalism, such as storing the car in a secured location.
Fire
Fires can start for various reasons, including electrical faults or external sources. Vehicle storage insurance covers:
- Full Vehicle Damage: If a fire completely destroys your car, the insurance will provide compensation up to the vehicle’s market value.
- Partial Damage: For fires that only partially damage the vehicle, the insurance will cover the repair costs.
Natural Disasters
Natural disasters such as floods, earthquakes, hurricanes, and hailstorms can cause significant damage to stored vehicles. Coverage includes:
- Flood Damage: Comprehensive coverage includes protection against flood damage, which can be particularly severe.
- Earthquake and Storm Damage: Insurance will cover damages resulting from earthquakes, hail, and hurricanes, including structural and interior damages.
Falling Objects
Vehicles stored in garages or under trees are at risk of damage from falling objects. Coverage includes:
- Structural Damage: Insurance covers damage caused by falling branches, tools, or other objects.
- Preventive Measures: Policies may offer benefits for storing the vehicle in a safer location, such as an indoor garage.
Additional Benefits of Vehicle Storage Insurance
Maintaining Continuous Coverage
Maintaining continuous insurance coverage has several advantages:
- Lower Future Premiums: Continuous coverage can lead to lower premiums when you reinstate full insurance.
- Ease of Reinstating Coverage: It simplifies the process of reinstating full coverage when you decide to drive the vehicle again.
Compliance with Loan Requirements
If your vehicle is financed, lenders often require comprehensive coverage to protect their investment. Maintaining storage insurance ensures:
- Compliance: You meet your lender’s insurance requirements.
- Avoiding Forced-Placed Insurance: Prevents your lender from purchasing insurance on your behalf at a higher cost.
How to Choose the Right Vehicle Storage Insurance
Assess Your Needs
Before purchasing vehicle storage insurance, consider the following:
- Duration of Storage: Determine how long you will store the vehicle. Short-term storage may have different requirements than long-term storage.
- Storage Location: Evaluate the security and environmental conditions of the storage location to understand the risks.
- Vehicle Value: Consider the market value of your vehicle and any modifications or custom parts that may affect its worth.
Compare Insurance Providers
Shop around to find the best insurance provider for your needs:
- Policy Options: Look for providers that offer comprehensive-only or storage-specific policies.
- Discounts: Ask about discounts for long-term storage, multiple vehicles, or security measures.
- Customer Reviews: Check customer reviews and ratings to ensure reliable service.
Understand Policy Terms
Ensure you understand the terms and conditions of your policy:
- Coverage Limits: Know the maximum amount your insurance will pay for damages.
- Exclusions: Be aware of any exclusions or limitations in the policy, such as coverage for specific types of natural disasters.
- Deductibles: Understand the deductible you will need to pay out of pocket before insurance kicks in.
Preparing Your Vehicle for Storage
Steps to Take Before Storing Your Car
Proper preparation can help prevent damage and ensure your insurance remains effective:
- Clean the Vehicle: Thoroughly clean the exterior and interior to prevent damage from dirt and debris.
- Maintenance: Perform necessary maintenance, such as oil changes, fluid top-offs, and tire inflation.
- Battery Care: Disconnect or remove the battery to prevent drainage.
- Car Cover: Use a high-quality car cover to protect against dust, debris, and minor impacts.
- Documentation: Keep a record of your vehicle’s condition and maintenance before storage for insurance purposes.
Conclusion
Vehicle storage insurance is an essential policy for anyone planning to store their car for an extended period. It provides crucial protection against non-collision damages such as theft, vandalism, fire, natural disasters, and falling objects. By maintaining comprehensive coverage, you can avoid coverage lapses, comply with lender requirements, and ensure your vehicle remains protected. Assess your needs, compare insurance providers, and understand policy terms to choose the right coverage. Properly prepare your vehicle for storage to maximize the benefits of your insurance policy and safeguard your investment.
