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 car insurance since some of the traditional coverages are not required when the vehicle isn’t driven. There may be several ways to get additional discounts on traditional policies. Also, there may be different types of policies that are more flexible than a basic storage car insurance. Let’s have a look at insurance options for a car that isn’t driven.

Insurance for Cars not Driven

Probably the first question that comes to your mind is do I need insurance for a car I don’t drive? Even though you don’t drive a vehicle you will still need to comply with the laws by either buying insurance for it or declaring it off the road with DMV. Even if liability automobile insurance requirement is lifted by contacting DMV it may make sense to buy comprehensive coverage to protect a not driven car from fire, theft, natural disasters and accidental damages. Such coverage is provided by storage auto insurance that usually consist of comprehensive coverage only.

Quite a few owners prefer to insure not driven automobiles for several reasons.

  1. They may be valuable enough to worry about financial loss. Quite a few people buy classic cars with the intention of fixing them up to their previous glory. They are stored for a long time until they can be driven again. In that case, you want to make sure that you don’t lose your investment on them by buying storage vehicle insurance that will only cover it for fire and theft. As long as you don’t drive it on the roads you don’t need liability or collision insurance for it yet.
  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 residence they may lock the car up in the garage. Again, such vehicles need to be insured for fire, theft, natural disasters and accidental damages. They may actually need a flexible policy that allows policyholders to drop some coverage like liability during the period it isn’t driven.
  3. Owner’s driving license is suspended for a time. There may not be anything wrong with the auto but the owner. The car may be locked in a garage if the owner had an accident that prevents him/her from driving for sometime or lost driving privileges for a period. Then, they may be able to arrange car storage insurance as discussed above.

How to Insurance Cars that Aren’t Driven?

Automobile Storage Insurance: Most insurers would allow policyholders to drop Collision and Liability covers for a while when the vehicle is in storage. Those are the covers that are related to driving and they wouldn’t be needed when the vehicle is safely stored in a garage. Most companies would require at least 30 days storage time limit and won’t reduce coverage for anything less. This may be a good option when you are planning on driving your vehicle shortly and this option would let you avoid lapse in auto insurance which could be costly when you want to drive again.

Low Mileage Insurance: Another good alternative may be to buy low mileage car insurance policies like pay as you go or pay per mile. This option is great if the vehicle is driven on and off and eliminate the need to talk to your insurer each time you want to put the vehicle on the road because the telematic tells them exactly when and how long you drive.

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