It is not uncommon to put a vehicle in storage over the winter months. If you are not planning to use your car during the winter, it makes sense to keep it safe and protected from the harsh weather.
It may be tempting to cancel your auto insurance coverage during this time, while your vehicle is not being driven on public roadways. After all, it could save your several months of car insurance premiums. However, there are some major drawbacks to canceling your insurance while your car is in winter storage.
Cons of canceling auto insurance during winter storage include:
You may be able to reduce your auto insurance premiums without canceling your coverage entirely for winter storage. One way to do this is to lower your coverage amounts. You are not likely to need collision or liability coverage while your car is stored in a garage, as it is virtually impossible to be involved in a wreck under those circumstances. However, some lenders may require borrowers to maintain both comprehensive and collision coverage for the duration of the loan.
Some auto insurance companies offer coverage specifically for vehicles in storage. This type of policy includes only comprehensive coverage, to protect you against damage to your car while is non-operational. Storage coverage is much more affordable than full car insurance coverage, and it keeps a gap in coverage from showing up on your insurance history.
This type of coverage only protects you while your vehicle is in storage. It is a violation of law to drive your car without auto liability insurance. Your vehicle registration could be flagged and suspended if you drop the state mandated minimum coverage. To avoid this, it may be possible to file an Affidavit on Non-Use with the DMV.
If you plan to put a car in storage for the winter, speak with our friendly agent. We can help you obtain the car insurance coverage you need at the best available rates.