How Much Insurance Do I Need for a Car I Don’t Drive?

There can be many reasons why people still keep cars even though they don’t drive them. Then, they may want to save some money on vehicle insurance since some of the traditional covers are not required when the vehicle isn’t driven. There may be several ways to get additional discounts on traditional policies or there may be different types that are more flexible. Let’s have a look at options when it is just sitting around collecting dust.

Probably the first question that comes to mind is do I need insurance for a car I don’t drive? The answer is yes; you will still need to comply with the laws by either buying at least Liability for it or declaring it off the road with DMV. Even if contacting DMV lifts liability requirement it may make sense to buy Comprehensive coverage to protect a not operational auto from fire, theft, natural disasters and accidental damages. It is provided by storage auto insurance that usually consists of Comprehensive only.

Who knows how many of them are out there and left to the elements entirely. But quite a few owners prefer to protect idle automobiles for several reasons.

  1. They may be valuable enough to worry about financial loss. Quite a few people purchase classic automobiles with the intention of fixing them up to their previous glory. They are stored for a long time until they can be put back on the road again. In that case, you want to make sure that you don’t lose your investment on them by buying storage car insurance that will only protect it for fire and theft. As long as you don’t use it on the roads you don’t need Liability or Collision for it yet. This would naturally reduce risks substantially and limit losses to only its open market value and therefore the premium is pretty reasonably priced.
  2. The vehicle is taken off the road for a short period. This may be the case with the vacation home vehicles. When the owners return to their main residences they may lock it up in the garage. Again, such autos need to be covered for fire, theft, natural disasters and accidental damages. They may actually need a flexible policy that allows people to drop Liability during the period it is out of use.
  3. Owner’s license is suspended. There may not be anything wrong with the auto but the owner. The car may be locked in a garage if the keeper had an accident that prevents him/her from driving for sometime or lost privileges for a period. Then, they may be able to make above-discussed arrangements.

How to Protect Cars that Are Out of Commission?

Automobile Storage Insurance: Most companies would allow policyholders to drop Collision and Liability covers for a time when the vehicle is off road. Those are related to operational risks and they wouldn’t be needed when the vehicle is safely locked up. Most companies would require at least 30 days storage time limit and won’t facilitate anything less. This may be a good option when you are planning on driving it shortly and this option would let you avoid lapse, which could be costly when you want it back on risk.

Low Mileage Insurance: Another good alternative may be to buy pay as you go or pay per mile types of policies. This option is great if the vehicle is driven on and off and eliminates the need to talk to anyone each time you want to put the vehicle on the road because the telematic tells them exactly when and how long you travel. Also, this may be a cheaper solution since the premium calculations are based on the mileage and you get the discount automatically.