If you’re departing for an extended trip or your car is inoperable, you may not need to drive it for a while. In that case, you may wonder if you need insurance on a stored car. You’re not legally required to have insurance coverage on a vehicle that’s not driven on public roads. However, if the vehicle is damaged or stolen, you’ll have to cover the costs out of pocket if it’s not insured.

How to Decide Whether to Insure a Car That’s Not Being Driven

Considering these factors may help you determine whether insuring your stored vehicle is a good idea:

• Car’s Value and Potential Risks: Consider your car’s value and the potential risks of keeping it in storage. What is the likelihood your car could be vandalized, stolen, hit by another vehicle, or damaged by a weather-related event?
• Cost of Insurance vs. Risk: Weigh your risk of theft or vehicle damage against the cost of insurance. Maintaining comprehensive coverage on your vehicle costs an average of $134 annually or a little over $11 per month, according to the Insurance Information Institute.
• Risk Tolerance: If you’re storing an expensive vehicle for a short time, carrying comprehensive insurance could offer you peace of mind while your car is in storage.

Registration Considerations for Stored Vehicles

If you plan on garaging your car for an extended period, you might consider registering it as “planned non-operation,” or PNO, with your local department of motor vehicles. Doing so could save on registration renewal costs, but it’s not advisable unless the car won’t be driven for a long time.

That’s because “planned non-operation,” or registering your car as “non-op,” means you don’t plan on driving, parking, or towing your vehicle on public roads and intend to garage it for the next renewal year. Consequently, you may avoid paying registration renewal fees.

If you plan on canceling your insurance, verify your state’s requirements for cars in storage. Bear in mind, canceling your car registration before dropping your car insurance could help prevent a coverage gap.

If you plan to register your vehicle as non-op, contact your local DMV as soon as possible. Some states set time guidelines for PNO filings. For example, the California Department of Motor Vehicles requires vehicle owners to register for PNO status between 60 days before registration expires and 90 days afterward. Register for planned non-operation on your state DMV’s website or by visiting a DMV office in person.

Find Affordable Car Insurance Premiums

If you own your car outright and your insurer permits it, you might consider pausing your insurance to save money while your car is in storage. Pausing insurance instead of canceling it may help you avoid a high-risk designation—and higher premiums upon reinstatement—by your insurer. Similarly, carrying comprehensive-only coverage could save money while providing a financial safety net in case your car is unexpectedly stolen or damaged while in storage.

If you’re considering changing car insurers, Experian’s car insurance tool lets you view and compare quotes from multiple insurance companies based on your current coverage. You may even qualify for a refund on premiums you’ve already paid with your insurance policy.

Contact O1ne Mortgage for Your Mortgage Needs

At O1ne Mortgage, we understand the importance of making informed financial decisions. Whether you’re looking to buy a new home, refinance your current mortgage, or need advice on managing your mortgage, our team of experts is here to help. Call us today at 213-732-3074 for any mortgage service needs. Let us help you find the best mortgage solutions tailored to your unique situation.