Parked car insurance typically covers a vehicle that is not being driven and is parked for an extended period. This type of insurance mainly protects against non-driving-related risks such as theft, vandalism, fire or weather damage.
It does not provide liability coverage or protection when driving someone else’s vehicle. If you frequently drive cars you don’t own, a non-owner car insurance policy is a better option than parked car insurance – it provides liability coverage. Still, it does not cover physical damage to the car you’re driving.
What is parked car insurance?
Technically, there isn’t a specific policy known as parked car insurance for vehicles kept in storage for an extended period. However, you can purchase a comprehensive car insurance policy to protect your vehicle from damage from theft, vandalism, fire or natural disasters. Remember that this option is unavailable if the car has a lien, as lenders usually require full coverage.
Since the car is not on the road, this insurance does not include liability or collision coverage, which is only needed when driving a vehicle.
Tip
You usually must remove the vehicle’s registration and license plates to qualify for storage insurance.
What happens if I’m pulled over while driving with only parked car insurance?
Parked car insurance only covers your car from theft, fire or vandalism. Depending on the state laws, being caught driving without proper insurance can result in fines, license suspension or vehicle impoundment.
If you’re involved in an accident without liability insurance coverage, you’ll be liable for any damages or injuries, which can lead to costly lawsuits and out-of-pocket expenses. Additionally, your insurance company may cancel your policy, and you could face higher premiums or difficulty getting insurance in the future.
Alternatives to parked car insurance if you drive a vehicle occasionally
If you drive occasionally, consider purchasing non-owner car insurance, which covers liability when driving a borrowed or rented vehicle. You can also be added as a secondary driver on the vehicle owner’s insurance policy, ensuring you’re covered when driving their car. In many cases, if you drive with the owner’s permission, their insurance may provide basic coverage for occasional use.
For those who rent vehicles instead of borrowing, rental car insurance, either through the rental company or a credit card, is a good choice.
Final thoughts
If you own a vehicle but keep it insured only with comprehensive or storage insurance, it’s essential to understand that this coverage does not extend to driving, whether it’s your own car or someone else’s.
Driving someone else’s car while you are only covered by parked car insurance can leave you financially and legally vulnerable. This type of coverage doesn’t include liability protection when you’re behind the wheel.
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