Understanding Insurance Terminology

Understanding Insurance Terminology

Three Insurance Changes To Consider When Putting Your Vehicle In A Storage Unit

by Vilma Maki

There are times in life when plans change, or plans are put on hold. These plans can include your belongings, including your automobiles. If you are leaving and you will not need your car, it is a good idea to put your car into storage. Your car being in storage means that it will be protected from the elements and will not be stolen, towed, or hit while you have it parked. Here are some insurance changes that you should look into when you have your vehicle in storage. 

Ask to increase your policy amount for your renter's insurance

When you rent a storage unit, you typically have the choice to use your own personal insurance or pick up an insurance policy from the storage company. If you have renter's insurance, it is a good idea to use your own personal insurance, as this tends to cover all of your belongings and may be easier to go through in the event of an accident or theft. Before you place your car into storage, ask your renters insurance to increase the policy payout amount for your storage unit. This will cover the cost of your car should you need to have it replaced due to a storage mishap. 

Drop the collision and accident coverage

One of the good parts of leaving a car in a storage unit is that you do not have to worry about road accidents. Call up your auto insurer and ask if you can remove the collision coverage and any accident coverage from your vehicle insurance plan. If you are able to remove these coverage amounts from your policy, you will have to pay a much lower monthly payment for your automobile. This can help save money and offset the cost of the monthly storage fees. 

Follow the proper procedure for registration

If you plan to store your car for longer than six months, it may be a good idea to turn in the license plate for your car. This will preclude you from having to do any sort of emissions testing and you will not have to renew your registration for the period of time that the car is off of the road. Turning in the license plate does not mean stopping insurance payments, so be sure to keep up with the necessary insurance cost of your vehicle. Once you have turned in the plates, speak with your insurance company about the policy requirements for a car that is not being driven for a period of time.  

For more information about insurance for your car, contact a local company. 


About Me

Understanding Insurance Terminology

After we purchased our first home, we realized that it might be a good idea to evaluate our insurance coverage. Although we had purchased homeowners insurance before, we had never owned a policy as large as the one we would need for our new place. Also, our new home had a trampoline and a swimming pool, which made us worried about liability. To iron out the details, I decided to meet with our insurance agent. We talked about things like monthly premiums, coverage limits, and deductibles, and it was incredible to learn more about the terminology. This blog is designed to help you with the same types of questions.