If you are a driver and you want to take your car off the public road, you should think about getting parked car insurance. In most states, drivers must meet a specific demand to have legal access to drive on public roads. Most drivers consider waiting before getting this coverage. Meanwhile, others remove the coverage from their policy, which can harm your rates.
However, most drivers are curious about if it’s really important to acquire car insurance if you drive and keep your car in a parking space. As a seldom-driven vehicle has a minimal chance of creating an accident, you can purchase parked car insurance.
What Is Parked Car Insurance?
Parked car insurance is a type of coverage that helps park your vehicle for a long period of time. It can either be called parking insurance or storage coverage, Additionally, it offers comprehensive coverage to drivers against specific perils as their car is stored off the public road. In contrast to other kinds of car insurance, it offers comprehensive coverage but doesn’t cover liability and collision coverage. If you are not able to get comprehensive coverage, you can consider uninsured motorist coverage to cover repair expenses.
Moreover, knowing the kind of coverage needed when determining the next resort once your vehicle is struck in the garage. When you buy this coverage, your vehicle should be stored in a private region that can be free from traffic jams. However, if you made up your mind to park on a public road, get liability insurance, which is not covered by this particular coverage.
How Does Parked Car Insurance Work?
In a situation when your vehicle gets hit by a driven car, you can be covered by two main coverages. This includes comprehensive coverage and uninsured motorist property damage coverage. However, you can consider getting separate coverage like collision coverage and property damage liability. This is because they cannot be covered by parked car insurance.
Comprehensive coverage
Comprehensive coverage helps to cover incidents like vandalism, theft, shattered glasses, animal collision, and natural disaster. An instance when a harsh storm caused a tree branch to fall and hit your parked vehicle. This coverage can provide finance to cover repair expenses without your deductible.
Uninsured motorist property damage coverage
Uninsured motorist property damage (UMPD) is a coverage that is accessible in certain states and may have a state-required deductible that applies. If a driver does not have auto insurance and hits your parked vehicle, it may pay for that expense. However, if you are held responsible and you fled from the incident, your UMPD may not cover it. Instead, you would need to get collision coverage.
Collision coverage
Collision coverage can assist you in settling for damage inflicted on your vehicle. For instance, your collision coverage can pay for repair expenses in a situation when you hit a parked vehicle without your deductible. Moreover, if your car is damaged in a hit-and-run and you don’t have UMPD, you can file a claim with your collision coverage.
Property damage liability
In some states, there is a high demand for property damage liability as an auto insurance requirement. Generally, this coverage helps to pay for damage when you are responsible for an accident on someone’s property. Therefore, if you are held responsible for an accident, your property damage liability would pay for the losses to the person’s car.
How Much Does Parked Car Insurance Cost?
Parked car insurance is quite cheaper than a normal car insurance policy. In some situations, you can choose the lowest level that is suitable for you and decide to cancel your coverage. However, the cost of parking insurance can be indicated by some factors. This includes your location, car type, method of parking your car, and more. Furthermore, contact your insurer to get a correct quote if your vehicle would be stored for a long period.
Advantages of Parked Car Insurance
For drivers who still think it’s not important to purchase parked car insurance, in this article, we will outline well-known benefits based on your needs and circumstances.
Prevention from damage
It helps cover your car against damages from specific perils like falling branches, animal collisions, lightning, hail, and more. Also, it protects your car against theft and vandalism.
Discounts
It also saves your funds as you will maintain a good insurance history record. Additionally, you can also modify your policy if you are ready to drive your car again.
Snowbirds
If you plan to leave your location or country for a long time, it is advisable to get your vehicle as you are long gone. So get snowbird travel insurance to ensure your car is protected as you embark on your journey with parked car insurance.
Finally, with all these benefits achieved, you are bound to have peace of mind knowing that your vehicle is in good care. Also, you can rest assured that your car will be covered against accidental damage.
Disadvantages of Parked Car Insurance
Despite having your car protected from damages, you cannot secure coverage for all perils and dangers. For instance, you do not have coverage for a hit-and-run situation if you do not know who the culprit is. In addition, if you have a lease, your lender may mandate you get both comprehensive and collision coverage on your car.
How to Get Parked Car Insurance
To get parked car insurance, you will have to contact your insurance company and know if they also offer this kind of policy. Moreover, an insurer will mandate you to maintain your car in the garage for more than 30 days before you get parked car insurance. Generally, here are the following methods to get parked car insurance:
Fully insure the car
Generally, before you cancel coverage for another automobile, you will need to have one that is insured to at least the minimum liability limits in your state.
Verify your car
If it is financed or leased, you will not be allowed to lower coverage to “storage” or “non-use.” A financed or leased automobile is one that you are required to maintain insurance on since you aren’t the legal owner.
Cancel your registration
The majority of states maintain a close eye on the requirements for registration. You may be punished if you discontinue your liability insurance without also terminating your registration.
Furthermore, if your current insurer does not provide parked car insurance, look around for a new provider. Many insurance providers offer this inexpensive alternative, so you should have several choices.
