“Insuring a Stored Car: What You Need to Know”

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Do I Need Insurance for a Stored Car?

If you’re planning an extended trip or your car is inoperable, you might not need to drive it for a while. In such cases, you may wonder if you need insurance on a stored car. Legally, you are not required to have insurance coverage on a vehicle that is not driven on public roads. However, if the vehicle is damaged or stolen, you will have to cover the costs out of pocket if it’s not insured.

Here’s what you need to know about keeping insurance on a stored car and what to consider before dropping or reducing your coverage.

How to Decide Whether to Insure a Car That’s Not Being Driven

Consider these factors to determine whether insuring your stored vehicle is a good idea:

• Car’s Value and Potential Risks: Assess the likelihood of your car being vandalized, stolen, hit by another vehicle, or damaged by a weather-related event. The cost of repairs is usually higher for newer and more expensive cars than older ones.
• Cost of Insurance vs. Risk: Dropping liability and collision insurance while your car is in storage can significantly lower your premiums. Maintaining comprehensive coverage costs an average of $134 annually, which may be worth it compared to the cost of repairs or replacement.
• Risk Tolerance: If you’re storing an expensive vehicle for a short time, comprehensive insurance can offer peace of mind. For older, less valuable cars, it might not be worth the cost.

Registration Considerations for Stored Vehicles

If you plan on garaging your car for an extended period, consider registering it as “planned non-operation” (PNO) with your local department of motor vehicles. This can save on registration renewal costs but is only advisable if the car won’t be driven for a long time.

Registering your car as “non-op” means you don’t plan on driving, parking, or towing your vehicle on public roads and intend to garage it for the next renewal year. This can help you avoid paying registration renewal fees.

If you plan on canceling your insurance, verify your state’s requirements for cars in storage. Canceling your car registration before dropping your car insurance can help prevent a coverage gap.

Contact your local DMV as soon as possible if you plan to register your vehicle as non-op. Some states have specific time guidelines for PNO filings. For example, the California DMV requires vehicle owners to register for PNO status between 60 days before registration expires and 90 days afterward. Register for planned non-operation on your state DMV’s website or by visiting a DMV office in person.

Find Affordable Car Insurance Premiums

If you own your car outright and your insurer permits it, consider pausing your insurance to save money while your car is in storage. Pausing insurance instead of canceling it can help you avoid a high-risk designation and higher premiums upon reinstatement. Similarly, carrying comprehensive-only coverage can save money while providing a financial safety net in case your car is unexpectedly stolen or damaged while in storage.

If you’re considering changing car insurers, O1ne Mortgage can help you find the best rates. Call us at 213-732-3074 for any mortgage service needs. Our team is here to assist you in finding the most affordable and suitable insurance options for your stored vehicle.

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