When is the Best Time to Get Car Storage Insurance?

Not all of us drive our cars every day. There might be times when you are away for a long period, and the car is parked in your garage. People are often worried about the security of their cars when they are away. Events like falling objects, vandalism, or fire may leave you high and dry financially.

Here is where car storage insurance comes in handy.

In this article, we will discuss everything you might need to know about car storage insurance — meanwhile, if you are looking for affordable insurance products, head on to Surex.

What is Storage Insurance for Cars?

As the name suggests, car storage insurance refers to an insurance policy covering the damage your car might sustain when not in use. However, one must note that there is no insurance product exclusively sold as “storage insurance”. It is comprehensive insurance that covers your car from damages like theft, vandalism, and fire while in storage.

 Here are the significant benefits that come along with car storage insurance:

  • It covers damage in the event of theft, vandalism, terrorism, or other criminal activities.
  • Even when your car catches fire, its recovery charges are covered by the predetermined insurance account.
  • It protects people against permanent disabilities and death when caused by accident as per the vehicle guidelines even while you are away and someone else drives your vehicle. (This is an add-on to the storage coverage)
  • Car storage insurance helps you save a lot every year. On top of that, it gives you the freedom to choose the amount you want to pay as per the programs throughout the year. When in trouble, it is also allowed to change the insurance amount at your convenience.

Getting storage insurance for your car not only brings you the benefits mentioned above but also ensures you have your peace of mind intact throughout the entire year.

What is Comprehensive Only Coverage?

If your car has not been driven for a specified period (30 days in most cases), you would have the option to suspend the following policies:

Instead, you can opt for comprehensive only coverage that would protect your vehicle from damages while it is in storage. Insurance providers require that your car be dormant for a specified period before offering you this coverage.

You can effectively reduce your premiums on other types of coverages. However, you need to be wary of the following:

  • Do not take your car out for a spin if you have suspended the third-party coverage. It is a legal prohibition. If your uninsured car meets an accident, you’d have to shell out a hefty penalty apart from paying the damages out of your pocket. It would also ruin your driving and insurance history, thus attracting higher premiums.
  • Do not leave your car without insurance while it is in storage. A gap in your car insurance history would not play out in your favour. When you opt to reinstate coverages for your vehicle in the future, you would have to shell out higher premiums due to the insurance gap. Thus, storage insurance helps you close down this gap while your car is not being driven.
  • If your car is financed by a borrower, he may require you to maintain a comprehensive policy on the car. In such cases, low-premium storage insurance comes in handy.

When Should You Get Car Storage Insurance?

Ideally, the best time for anyone to get comprehensive insurance for their car would be when you buy a new car. As per the Canadian vehicle laws, driving without proper insurance can make the owner pay large sums as fines and penalties.

Although storage insurance isn’t mandatory by law, it is always beneficial to have it. However, there are some points to be considered before getting car storage insurance:

  • If you own more than one car and only drive one of them, consider getting storage insurance for the other car since it makes sure to cover all kinds of damage fines and charges.
  • If you choose to drive different vehicles as per the seasonal changes, it will be challenging to maintain them without proper storage insurance for each one of them.
  • If you intend to take a long vacation and during the time your car would be kept in your garage, get storage insurance if you do not have it already. It is the best option to avoid all unexpected damages during your vacation period. A tree might fall on your car or get hit by some other vehicle, or animal activities can damage it without your notice during its time in storage.
  • Do not cancel the insurance if you decide not to drive your car for a limited period for some reason. Paused insurances cause many problems in the long run, including eventually increasing your monthly maintenance fees.

Parked vs Storage Insurance Car: Differences in Insurance

Parked car insurance protects your car from a hit and run incident when parked on a public road. However, under storage insurance, you are prohibited from parking your car on public property; it must be stored on your personal property for the coverage to kick in.

Thus, storage insurance would not cover incidents of car damage when parked on a public road or similar area. You can invoke your comprehensive policy in cases such as this.

What Have You Learned About Car Storage Insurance?

No matter the situation, getting storage insurance for your car while you are away is always a clever step. Do not get any insurance and do your research thoroughly before getting one since there are many options out there.

Learn the benefits storage insurances come with, and do not cancel or pause the policies as per your convenience since they will affect you more in the long run. If you are unsure, it is best to talk to a professional. They will do their best to help you choose the right policy and make sure that you are on the right track.