Approximately 18 million people in this country own collector cars. Collector cars might be antique vehicles or sports cars they don’t drive often.
Collector car owners look for places to store these vehicles when they’re not driving them, and many turn to vehicle storage facilities. A vehicle storage facility offers the ideal place to store a car, whether or not it’s a collector car.
One question you might have when storing a car is whether you should cancel the car insurance policy on this vehicle when storing it.
If you’d like to know the answer to this question, continue reading this guide to learn the factors you should consider when making this decision.
Reasons People Store Cars
People store cars to keep them safe when they don’t drive their vehicles. Here are some examples of the reasons people do this:
If you own a collector car, you might drive it when the weather permits. The weather might be good for driving in the late spring through early fall.
The weather is nice enough during this time, but not during the rest of the year. Therefore, people protect their cars by putting them in storage.
Injuries or Traveling
Some people store their cars for periods when they can’t drive due to injuries. For example, if you break your leg and can’t drive for six months, you might decide to store your vehicle for protection.
Another example is traveling. If you plan a six-month trip away from home, you might not want to leave your car in the driveway with no one monitoring it.
You might also decide to store your car for a while if you have a suspended license. It might be wise to store your vehicle if you can’t drive it for this reason.
Factors to Consider Before You Cancel the Car Insurance
You may want to consider several factors about your vehicle before canceling a policy on it. Your insurance policy protects your car, and canceling it might not be the best idea. Here are three factors to consider:
Do you owe money on the car you want to store? If so, your car loan lender might not let you cancel your insurance policy. Most lenders require full-coverage insurance with all vehicle loans.
Therefore, you should contact your lender if you have a loan. Your lender can tell you if you can cancel the policy. They’ll likely tell you that you must keep insurance on the vehicle even though you won’t be driving it.
Lenders set these requirements for their protection. Your car insurance policy compensates your lender if damages occur to the vehicle.
Likelihood of Damage
Secondly, is there a chance your vehicle could encounter damage while in storage? Vehicle damage doesn’t just happen when driving a car or leaving it in your driveway. Instead, it can happen anywhere.
If you want to rent a covered storage space for your car, you might want to look around the facility before canceling your policy.
For example, could something fall on your vehicle? Could your car encounter scrapes or scratches? Does the facility have surveillance and security?
While most vehicle storage facilities offer excellent services, there is still a chance your car might encounter damage. It will help if you pick a facility that focuses on great security and safety measures.
Other Vehicle Ownership
Finally, you can factor in the other cars you own. If you own other vehicles, canceling the policy on your stored vehicle might work out fine. But, of course, you can’t do it if you owe money on it.
But, if you own other vehicles, you can keep your auto insurance policy to protect those cars. If this is your only vehicle, canceling the policy results in an auto insurance coverage lapse.
Insurance companies view lapses unfavorably. This means that when you try to get auto insurance on the car after the lapse, you might face challenges.
For example, the insurance company might turn you down or charge you higher rates. However, if you keep the policy for your other vehicles, you wouldn’t have to worry about this issue.
How to Update Your Plan for the Necessary Coverage
Canceling the car insurance on your stored car is rarely a good idea. Instead, you might want to update your plan to save some money.
First, you can ask the storage facility if they offer car storage insurance protection. While many storage facilities offer this, the coverage might not be sufficient for your vehicle.
The better option is to update your car insurance plan with your insurance company. You can make a few changes to your plan that will lower your costs.
First, you can remove some of the coverage types. For example, if you don’t have a loan on the vehicle, you could reduce the coverage to comprehensive insurance only.
Comprehensive insurance protects a car against damages that occur when storing the vehicle. For example, it protects against damages from theft or vandalism. It also covers damages from things falling on a vehicle.
If you cut back to comprehensive insurance only, your policy premiums should drop.
Secondly, you could increase your policy’s deductible. If you have to keep collision coverage, you could increase the deductible to save money on the policy costs.
Choose the Right Car Storage Facility
While you might decide to cancel the car insurance on your vehicle before storing it, keeping insurance coverage is generally the better option. Of course, it’s always essential to choose the right car storage facility.
If you live in Kingston, WA, and need a safe and secure place to store your vehicle, contact Ideal Storage. We offer solutions for storing cars, boats, and more.