Do I Need Insurance For a Car That’s in Storage?
December 19, 2024The Pennsylvania DMV indicates that any currently registered vehicle must have insurance (financial responsibility). But, what about cars that aren’t on public roads? Do you need insurance for a car that’s in storage? Here’s what you need to know:
Do I Need Insurance For a Car That’s in Storage?
Laws on whether you need auto insurance for a car in storage will vary from state to state. It may also depend on whether the registration is current and active, whether the car even drives on public roads, and how much risk you are willing to take on yourself in the event of damage or loss.
Do You Need Insurance For Cars in Storage in Pennsylvania?
In Pennsylvania, currently registered vehicles must have some sort of insurance (financial responsibility). Even if the car is in storage and does not drive on public roads, it needs to be insured if it is currently registered.
However, if the car will remain in storage for an extended period of time and will not be driven on public roads, you can surrender the registration to the DMV. In this case, you are not legally required to have insurance for that vehicle. It’s recommended that registration plates are surrendered to PennDOT any time insurance is not in effect.
You May Still Need Insurance Protection Even If It Is Not Legally Required
Although you technically don’t legally need insurance for a car in storage in Pennsylvania if it does not have an active registration, that doesn’t necessarily mean that you don’t need insurance for it. After all, even a car that is in storage and is not driven on public roads can be susceptible to damage or loss.
If you don’t want to self-insure and risk having to handle anything that happens completely out of pocket, then having some insurance coverage that can help in the event of damage or loss is a good idea. Your insurance agent can help you navigate the details and determine what types of coverage make the most sense for your situation.
7 Insurance Considerations For Cars in Storage
Insurance can be nuanced. Some coverage may not be necessary for your specific situation while other types of coverage may be highly recommended, and every state can be different. Talking with your insurance agent is the best place to start. In general, here are some important insurance considerations for cars in storage:
1. Damage and Loss Can Occur in Storage Too
Vehicles in storage may be less at risk for road accidents, but that doesn’t mean that they are protected from other types of damage or loss. If a vehicle in storage is damaged, whether by weather events, by vandalization, or something else, and it is uninsured, you will be entirely responsible for expenses as a result of that loss. Like insuring other high-value assets, having the right insurance coverage in place can help protect your investment against these types of threats.
2. Vehicles in Storage Can Be Stolen
Another consideration for insurance when it comes to cars in storage is theft. In addition to damage and potential total loss, stolen vehicles can also create other liability risks. When you have the right insurance coverage, you are generally not held responsible for damage caused by someone who steals your vehicle and insurance usually steps in to help cover your losses. Without insurance, your financial responsibilities may extend beyond just the damage to or loss of your stolen vehicle.
3. You Need the Right Type of Insurance For Vehicles in Storage
There isn’t technically specific and dedicated “vehicle storage insurance”. Coverage for vehicles in storage usually consists of various lines within auto insurance. Your insurance agent can help you get the right mix of coverage and limits that you need as it may vary depending on your state, your situation, and your insurer.
Comprehensive Coverage Offers Protection For Vehicles in Storage
In general, comprehensive auto insurance will protect a vehicle in storage against damage that could occur while parked on your property. Comprehensive car insurance usually covers things like tree damage and weather-related damage and provides protection if your vehicle is vandalized or stolen.
You May Be Able to Drop Collision Coverage For a Vehicle in Storage
Many insurance carriers tend to offer comprehensive and collision coverage together on an auto insurance policy. Depending on your insurer, you may be able to drop collision and keep comprehensive coverage for a car that is in storage while in other cases, you may not be able to have one without the other. Your insurance agent will be able to walk you through your current policy and options.
There May Be Other Necessary Coverages For Storage Locations Outside of Your Property
If your vehicle will be stored in another location, you will want to talk to your insurance agent to ensure that your vehicle is fully protected through your own insurance and whatever insurance related to the storage location that may apply to your vehicle while it is on that property.
4. You May Not Be Permitted to Cancel Coverage
If there is a loan on the vehicle in storage, you may not be permitted to drop coverage on it. In the case of an auto loan, your lender may require insurance coverage on that asset as a requirement on your loan. If this is the case, you will need to make sure that any changes you make do not violate policy requirements or your loan agreement.
5. There May Be Specific Forms Required By the DMV
If you are planning to cancel the registration and insurance on a vehicle that will be in storage, there may be specific forms that you have to file with them before you do so. In addition to conversations with your insurance agent, make sure you are aware of everything your state’s DMV requires you to do for a vehicle in storage. Also, depending on your state, your DMV may also have specific instructions related to bringing a car back out of storage and re-registering it.
6. It May Make More Sense to Maintain Your Current Policy Through the Storage Period
Another insurance consideration for a vehicle in storage is whether it makes more sense to keep the current policy, adjust it, or cancel it. Canceling the policy creates gaps in coverage, which can increase your risk as an insured and this can have consequences when shopping for car insurance.
There is a chance that, if you cancel insurance for a vehicle in storage, you may pay higher premiums for new coverage you purchase for the vehicle in the future. Also, you may not be eligible for certain discounts for personal lines from which you currently benefit, even if your new policy is through the same insurer.
If your plan is to only keep the vehicle in storage for a few months, it may be better to simply maintain your current policy through the short-term storage period or temporarily reduce coverages on your policy. Your insurer may also allow you to temporarily suspend your car insurance, which could be another option if you are only planning to have your vehicle in storage for a short time.
7. Make Sure Coverage is Fully Restored Before the Vehicle Returns to the Road
Whenever you start the process of bringing a vehicle out of storage, make sure you have the right insurance coverage in place before the vehicle returns to the road. In addition to reactivating registration, if you previously surrendered it to the DMV, you will also need to reinstate or update your insurance coverage.
If you ended up canceling your car insurance entirely, you’ll need to get insurance in place to protect your vehicle on the road. If you reduced your coverage, you will want to make sure you add back whatever coverage you need so you are not leaving yourself uninsured or underinsured out on the road.
For example, if you were able to drop collision coverage while keeping comprehensive coverage, it’s a good idea to make sure you have collision coverage added back to your policy before risking an accident. One of the car insurance myths is that comprehensive coverage is complete protection. In the case of an accident, you will need collision coverage, or physical damage, on your policy to cover damage to your vehicle caused by the collision.
Or, if you reduced coverage to the minimum limits, you’ll want to make sure your policy limits are sufficient for your needs before taking your vehicle out of storage. These are things to consider when customizing your car insurance policy and are all things you will need to revisit and potentially replace when re-insuring or updating insurance for a vehicle that has been in storage.
Make Sure Your Vehicles Are Covered With Ruhl Insurance, a Division of Horst Insurance
Insurance can be complex and nuanced. It can be difficult to navigate on your own and be confident that you have the coverage you need, and enough of it. Personalized advice, guidance, and expertise are some benefits of working with an independent insurance broker.
They can work with you, ask the right questions, obtain insurance proposals that meet your needs on your behalf, and help you pick the best insurance quote to make sure your insurance coverage meets your needs sufficiently. If you need insurance for a car in storage or need to update insurance for any of your vehicles, contact Ruhl Insurance, a Division of Horst Insurance, at 717-665-2283 or 800-537-6880.
Disclaimer: Information and claims presented in this content are meant for informative, illustrative purposes and should not be considered legally binding.