Often times, people drive their cars year round. However, some individuals have cars they only drive in the summer or winter. In those scenario’s, a great option is to put your vehicle in storage during it’s time off the road. Here are some things you need to know before you take your summer car off the policy:
A lot of times, people think they need to cancel their policy if they are going to store their off-season car, that is not the case. When you cancel your insurance policy you are creating a gap in your history. This puts you in the high-risk category with your insurance company. When you re-instate your car, you will find you have to pay a higher premium, and no one wants to do that!
You will also be liable for anything that happens to your car if you don’t have insurance on it. This means, if a tree falls on your garage and ends up damaging your car, you are expected to pay all repair costs out of your own pocket. Insurance won’t cover it because you cancelled the policy, remember? Therefore, we suggest you never actually cancel the policy while the car is in winter storage, but instead have the insurance company change it to ‘stored.’
Storing your vehicle means that you do not plan on driving it in the off season (typically 1 month or longer), but you still have physical damage coverage on it through comprehensive insurance. In this scenario, if a tree falls on your garage and damages your car, insurance will help cover the cost less your deductible. However, if you still owe money on your car, typically the bank will not allow you to place your vehicle in ‘storage’. They will require you to maintain a certain level of coverage, including liability and collision. With a written request, some banks will allow you to lower your coverage to ‘storage’. However, you will want to check with your lender prior to having your agent make the change.
Want to find out what the best option is for the car you won’t be driving this winter? Call your Compass Insurance Agent today!