When most people think of car insurance, they typically associate it with driving—accidents on the road, liability for injuries, or damage from collisions. But what if your car isn’t being driven at all? What if it’s parked for weeks or months at a time? Do you still need insurance for a parked car? The short answer is: in most cases, yes. This article explores why insurance may still be necessary for a stationary vehicle, what types of coverage you should consider, and how to save money while staying protected.
Why a Parked Car Still Needs Insurance
Even when your vehicle is not being driven, it can still be exposed to risks such as:
- Theft: A parked car can be stolen from your driveway, garage, or even a public lot.
- Vandalism: Cars left unattended are often targets for vandalism, especially in urban areas.
- Weather Damage: Hail, falling branches, or floods can cause costly damage to parked vehicles.
- Liability Risks: If your car rolls from its parked position and damages another person’s property or injures someone, you could be held liable.
Insurance provides financial protection for these scenarios, and in many cases, maintaining coverage is required by law or by lenders.
Types of Coverage for a Parked Car
If your car isn’t being driven, you may not need full coverage, but certain types of insurance remain essential. Here are the main types to consider:
1. Comprehensive Coverage
Comprehensive insurance covers non-collision-related damages such as theft, vandalism, natural disasters, and falling objects. If your car is parked and not in use, comprehensive coverage is the most relevant and useful type of protection.
2. Liability Insurance
Liability insurance covers injuries or property damage that you may cause to others. While it might not seem necessary for a parked vehicle, some states require all registered vehicles to carry liability insurance, regardless of whether they’re being driven.
3. Collision Coverage
This coverage applies to damages caused by an accident with another vehicle or object. If your car is truly not being driven, you may not need this. However, if there’s a chance it could be hit while parked on a public street, collision coverage could still be valuable.
4. Uninsured/Underinsured Motorist Coverage
If someone hits your parked car and doesn’t have insurance, or flees the scene, this type of coverage can help you recover repair costs.
Legal and Lender Requirements
State Laws
Insurance requirements vary by state. Some states require you to maintain a minimum level of liability insurance as long as the car is registered, even if it’s not in use. Failing to comply can result in fines, suspension of registration, or other penalties.
Lender or Lease Agreements
If you financed your car or are leasing it, your lender may require you to keep full insurance coverage, including comprehensive and collision. Removing coverage while the car is parked could violate your contract and lead to penalties or even repossession.
Storage or “Comprehensive-Only” Policies
If you’re storing your vehicle for an extended period—such as during a military deployment, a long trip, or a seasonal break—you might qualify for a reduced insurance policy.
Comprehensive-Only Policy
Many insurers offer a “comprehensive-only” or “storage” policy for vehicles not being driven. This significantly lowers your premium while still protecting against theft, fire, weather, and vandalism.
To qualify, the vehicle typically must:
- Be parked in a secure location (garage or private driveway).
- Not be driven at all during the coverage period.
- Be removed from the road (surrender plates or suspend registration in some states).
Always confirm with your insurer before switching to this type of policy.
How to Lower Insurance Costs for a Parked Car
If you’re keeping insurance on a parked vehicle but want to reduce your expenses, consider these tips:
- Drop unnecessary coverage: Remove collision or other options that don’t apply if the car isn’t being driven.
- Bundle policies: Combine auto insurance with home or renter’s insurance to receive a multi-policy discount.
- Increase your deductible: Raising your deductible lowers your premium, but be sure you can afford the out-of-pocket cost if you need to file a claim.
- Maintain a good credit score: Many insurers use credit history to set rates, and a better score can lead to lower premiums.
- Ask for discounts: Some insurers offer discounts for low mileage, good driving history, or storing a vehicle in a secure location.
Risks of Canceling Insurance Completely
Canceling your insurance while your car is parked might seem like an easy way to save money, but it comes with serious risks:
- No protection: If something happens—like theft or a storm—you’ll be responsible for the full cost of repairs or replacement.
- Legal consequences: You may face fines or registration suspension if your state mandates continuous insurance.
- Higher premiums later: A gap in coverage can be viewed as high risk by insurers, potentially raising your rates when you reinstate a policy.
Summary Table: Do You Need Insurance for a Parked Car?
| Scenario | Insurance Needed? | Recommended Coverage | Notes |
|---|---|---|---|
| Parked on private property | Yes | Comprehensive | Protects from theft, weather, vandalism |
| Parked on public street | Yes | Liability + Comprehensive | Required in most states, especially for public roads |
| Long-term storage (garage) | Maybe | Comprehensive-only | Check with insurer; suspend registration if allowed |
| Leased or financed car | Yes | Full coverage (comp & collision) | Lender requires full coverage |
| Seasonal/unused car | Yes | Reduced policy or storage plan | Ask about specialized insurance for stored vehicles |
Conclusion
Even when your car is parked and not in use, insurance remains a necessary and often legally required safeguard. Whether it’s for protection against theft, weather, or legal obligations, maintaining at least comprehensive coverage ensures you don’t face financial setbacks from unexpected events. Before making changes to your policy, always consult your insurer and check state laws. If you’re storing your vehicle long-term, ask about a storage or comprehensive-only policy to keep your costs down while still staying protected.
Read More:
- The Best Insurance Coverage for Long Road Trips
- How to Avoid Overpaying for Car Insurance
- Is It Legal to Drive Without Insurance?
- What Is the Difference Between Named Driver and Any Driver Policies?
- How Age of Car Impacts Your Insurance Coverage
- What to Know About Insurance for Leased Cars
- How to Negotiate a Settlement with Your Car Insurance
- Understanding Car Insurance Policy Declarations