It is not uncommon to store a vehicle during the winter months. If you do not plan to use your car in the winter, it makes sense to keep it safe and protected from the harsh weather.
It can be tempting to cancel your car insurance during this time, while your vehicle is not being driven on public roads. After all, it can save you several months of car insurance premiums. However, there are some major disadvantages to terminating your insurance when your car is winter storage.
What are the disadvantages of canceling car insurance for winter storage?
Disadvantages of canceling car insurance during winter storage include:
- Lenders and government requirements: You may not be able to lose your car insurance if you financed your car. As a condition of your loan, continuous coverage is likely to be required. In addition, mandatory minimum car insurance may be required for your vehicle registration to remain valid.
- Gap in coverage: If you cancel your insurance when you store your car, it creates a gap in the coverage, which makes your car insurance history look more risky for insurers. This can mean higher premiums when you reinsert your insurance.
- No protection for your vehicle: With no comprehensive coverage, you will not be protected from damage that may occur during the period your car is parked in storage. A vehicle does not have to be on the road for accidents and injuries to occur. A roof collapse, a tree falling on the building, fire, theft ̵
What are your options for insuring a car in winter storage?
You may be able to lower your car insurance premiums without canceling your winter storage coverage altogether. One way to do this is to lower your coverage amounts. It is unlikely that you will need a collision or liability protection when your car is stored in a garage, as in these circumstances it is virtually impossible to be involved in a wreck. However, some lenders may require borrowers to maintain both comprehensive and collision coverage during the term of the loan.
Some car insurance companies offer coverage especially for stored vehicles. This type of policy only covers comprehensive coverage to protect you from damage to your car while it is not in operation. Storage coverage is much more affordable than full car insurance, and it keeps a gap in coverage from appearing in your insurance history.
This type of cover only protects you when your vehicle is stored. It is a violation of the law to drive your car without car liability insurance. Your vehicle registration can be flagged and canceled if you lose the minimum coverage of the state mandate. To avoid this, it may be possible to submit a declaration of non-use with DMV.
If you are planning to store a car for the winter, talk to our friendly agent. We can help you get the car insurance you need at the best available prices.