Do I Need Insurance On A Car I Don’t Drive?

Some of us keep a sort of mini-junkyard on our property. We might stockpile cars that might be salvageable, that can be used for parts, or that we might fix up and hit the road with someday. But for the time being, these cars are just sitting there, on the property.

So, here’s the question: Are you required to buy insurance for a car that you have no intention of taking on the road anytime soon? The short answer is: Probably not. Here’s what you need to know.

• Auto insurance will be required for any car that is currently registered, regardless if you ever drive it. So, if you’ve only recently put a car out to pasture, you’ll either need to cancel your registration or keep paying until the registration runs out.
• If you have a registered car that you’re not driving, you may be able to talk to your auto insurance provider about reducing premiums on the car’s policy until the registration runs out.
• If you are concerned about maintaining the condition of the cars you don’t actively drive, you can talk to your car insurance provider about a comprehensive-only policy. You might not get into an accident in that old Ford Mustang until you put the engine back in it. But risks sill exist. It might be vandalized, stolen or otherwise damaged. A comprehensive-only policy offers you a little protection so that your investment in that project-car doesn’t turn out to be a waste.
• Car insurance companies will cover storage cars, but only if the car is in a locked storage facility. Leaving your car out in the driveway doesn’t count.

Sometimes, a car isn’t just a car to you. It could be a project — something you’re going to have fun with when you retire or fix up when you get a little time off. Or maybe you have an old van that’s more of a storage shed at this point. Whatever the reason your car isn’t on the road, if it’s unregistered, then it doesn’t require insurance.