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The pros and cons of keeping insurance on a broken-down car
The car sitting in your garage that you haven’t driven in years doesn’t need insurance, right? While legally, this is the case, you might still want to have car insurance even on a vehicle that doesn’t run. We’ll explain why, along with some low-cost options, below.
Legally, it’s not necessary to have insurance on a car that you don’t drive because it doesn’t run. However, there are a few good reasons why keeping some level of car insurance is a good idea.
One option you have is to suspend your car insurance temporarily, perhaps until you get your car fixed or you buy a new one. However, we recommend getting comprehensive-only coverage for those damages from events like fires, floods, or theft. If you ever want to recover your car in any way, having comprehensive insurance is worth it.
Maybe your car isn’t broken down but is in storage, is never driven, and/or has an outstanding loan. What do you do regarding your insurance policy in those situations?
See what the states require for auto insurance requirements in our guide to auto insurance.
Of course, no one wants to be paying an exorbitant insurance premium for a car that doesn’t run. You can keep your rates as low as possible by following these steps:
If you own a broken-down car but think you will drive it eventually, get non-owners insurance, which is cheaper than regular car insurance but could cover property damages in at-fault accidents.
If you want to protect your broken-down car, having comprehensive coverage only is a cheap and easy way to do so. After all, if you ever want to salvage your vehicle, you’ll be happier not having to pay out of pocket for any damages from fires, floods, hail, or whatever life throws at you.
Do you need insurance for a car in storage? Progressive. (2022).
https://www.progressive.com/answers/insurance-car-in-storage/