Should You Buy Insurance For a Stored Car

Published On Oct 27, 2020 10:06 AM By InsuranceDekho

Do I need insurance for a stored car? Let’s read about some reasons why it is advisable to have your car insured even when it is in storage.

When your car is going to be in storage for a long period, for example, when you are going on vacation for a long period or you are not going to be driving your car for a long time for other reasons, such as winter months, it may be tempting to forego insurance for that period. Also, if you own a luxury car that does not get driven at all, and is simply for storage, you may feel like you do not need to get it insured. However, it is recommended and advisable to ensure that your car is insured at all times, even when it is not being driven. The risk of damage is not limited to the roads.

Let’s read about some reasons why it is advisable to have your car insured even when it is in storage.

It is Mandatory by Law

As per the Motor Vehicles Act 1988, it is mandatory for your car to be insured at least up till Third Party level. This is also known as liability only insurance. Thus in order to be a law abiding citizen and to have peace of mind regarding trouble with the law, it is better to ensure that your insurance does not lapse even when your car is in storage. Further, keeping your insurance continued will save you the effort of purchasing a new policy for when you choose to take your car onto the road again.

Risk of Damage

As mentioned, the risk of damage to your car is not limited to when you are driving on the roads. Even in storage, events like natural disasters such as floods or earthquakes may cause immense damage to your car. Floods especially may damage your engine which would be very costly to replace, and thus it is extremely beneficial to have the safety net of an insurance plan available to you in such a situation of damage coming to your car while it is in storage.

Risk of Theft

Theft is perhaps the biggest danger to your car while it is in storage. This is especially true for vintage or luxury cars which are often kept in storage and not intended for driving. This is why it is extremely important to keep your car insured even while it is in storage. If it is stolen and you do not have insurance you would be left with a huge financial loss. If your insurance has not lapsed, and you have coverage that allows for reimbursement in case of theft, you would likely be compensated for your losses in case of theft.


Thus it is extremely advisable to ensure that your insurance coverage does not lapse even when your car is in storage. Not only do you expose your car to risk of damages or theft by allowing your coverage to lapse, you would also be in violation of the law, and be adding extra effort for yourself in having to repurchase an insurance policy when you go back on the road.

Types of Car Insurance You Should Know:

Third Party Car Insurance

Comprehensive Car Insurance Policy

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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