How to Get a Garaging & Storing Auto Insurance Discount (2024)

Depending on your auto insurance provider, parking your car in a garage may lead to a garaging and storing discount on your auto insurance rates. Doing so keeps your vehicle safer and can save you money on auto insurance.

Typically, the discount is a minor 5%, especially for civilians. But USAA offers up to 90% reduction for military personnel and their families.

However, not all insurance companies offer this discount, and the discount amount varies. So, compare multiple companies if you’re looking for cheap insurance for parking or storing your car.

Keep reading to learn more about this auto insurance discount and determine if a garaging and storing deal is right for you.

What is a garaging and storing discount?

A garaging and storing discount rewards drivers with a rate reduction for being safer, more responsible customers. Your parked cars must be kept in a space approved by your insurance company to qualify for this discount.

Usually, only collision and comprehensive policies are reduced by this discount, not your liability auto insurance coverage required by most state auto insurance laws. So although the discount won’t apply to your entire policy, it still offers some savings.

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What auto insurance companies offer a garaging and storing discount to drivers?

While most insurers offer various auto insurance discounts, not all offer discounts for garaging or storing your vehicle. Ensure you thoroughly investigate the new car auto insurance discount to discover various options that you may find appealing.

You can earn a garaging discount on your auto insurance policy from six national providers. To verify if you already use a garaging and storing discount auto insurance company, check out a complete list of providers below.

Car insurance companies that offer a garaging and storing discount include:

• Ameriprise Auto Insurance Company
• Amica Auto Insurance Company
• Farmers Auto Insurance Company
• The Hartford Auto Insurance Company
• Travelers Auto Insurance Company
• USAA Auto Insurance Company 

Not every company is active in every ZIP code or available to every driver. Smaller, local agencies near you might also provide this deal to drivers. 

For example, USAA offers the most significant rate reduction, but it’s only available to active or retired military personnel and their families.

Civilian drivers save closer to 5% on their annual rates by earning this discount, a relatively minor reduction that might not lead to your lowest prices.

To secure your lowest auto insurance rates, compare quotes online from different companies and ask about additional discounts.

Why do auto insurance companies offer a garaging and storing discount?

Ultimately, fewer claims are filed and paid out when vehicles are parked and stored. In some ZIP codes, your risk of auto theft is higher than average, affecting car insurance rates and increased claims. Each year, 700,000 drivers fall victim to auto theft, according tothe National Highway Traffic Safety Administration (NHTSA). One of the advantages of storing your vehicle in an enclosed, locked space is that it minimizes your chances of being part of that statistic.

Garaging and storing your car also reduces the risk of damage caused by street damage, severe weather, acts of nature, and vandalism. Only collision and comprehensive auto insurance cover the kind of damage to your vehicle that garages prevent.

How does garaging or storing your vehicle affect your car insurance coverage?

Learning how to file an insurance claim can help in many situations. Parking in a garage means you’re less likely to file insurance claims, which also helps keep your car insurance rates low. However, that’s not to say that minor damage can’t occur. 

Keep in mind that filing multiple claims each year can cause your rates to increase. Therefore, carefully consider whether or not it’s worth it to file a claim. It may be cheaper to pay for repairs yourself instead of paying higher insurance rates for about three years.

You shouldn’t cancel your car insurance while garaging or storing your vehicle.  

First, if your car is damaged, you’ll be left paying out of pocket for damages that occur while your vehicle is garaged or stored.

Second, your car insurance rates are higher after a lapse in coverage. Insurance companies like to see continual insurance and driving histories. Any gaps are considered suspicious and lead to higher rates.

Even though you may think you don’t need to pay for car insurance while your car is stored, you’ll pay more in the long run if you allow your coverage to lapse.

Are there other ways to save when garaging or storing your car?

Because auto insurance discounts often stack, ask about any additional savings available to you. For example, military or occupational discounts may go along with a storing discount.

Common car insurance discounts include:

• Group or membership discounts
• Military discounts
• Multi-policy discounts
• Occupational discounts

Read more: How To Get a Membership Auto Insurance Discount

You may also be eligible for a low-mileage discount. While mileage varies by company, most insurance companies offer a discount if you don’t drive your car often.

Usage-based insurance will also save you money if you don’t drive a lot since you pay for each mile. This insurance offers typical coverage, but rates are generally lower.

Also, consider your coverage itself to save money. For example, while you shouldn’t drop car insurance, you may want to reduce coverage limits and raise deductibles. Doing so increases the amount you’ll pay out of pocket if your vehicle is damaged but lowers rates overall.

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Garaging and Storing Discounts

Inform your insurer that you have a garage and ask about a garaging and storing discount. Each insurer has different garaging and storing discount requirements, so be sure to get specifics if you’re considering storing your vehicle.

In addition, you may qualify for other car insurance savings, such as military, occupational, and membership discounts. These discounts often go hand in hand with a garaging and storing discount.

Other ways to save money are switching to usage-based car insurance and adjusting your policy. However, while reducing coverage limits and raising deductibles saves money, dropping coverage altogether leads to higher out-of-pocket costs.

If your insurance company doesn’t offer a garaging and storing discount, consider changing insurers, especially if you’re storing your vehicle for an extended period. Compare multiple companies to see who saves you the most for garaging or storing your car.

Can I get a discount on auto insurance if my car is in storage?

You have several options to help find a discount on auto insurance if your car is in storage. Some states allow you to cancel insurance for a car in storage. Others enable companies to offer alternative auto insurance options for long-term garaged vehicles, which will relieve a good deal of financial responsibility for the car owner.

There are a number of things you can do to lower your auto insurance premiums if you decide to put your car into storage.

Some states will allow you to cancel your insurance altogether if your car is put into storage.

Other states allow companies to have alternative auto insurance options for those who are planning to store their vehicle, which will relieve a good deal of financial responsibility for the car owner.

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Storing Your Vehicle

Some states will allow you to completely terminate your auto insurance coverage if your car is being stored.

“Stored” means to the insurance company is that your vehicle is housed in a locked facility. Having your car on the street corner or in your garage doesn’t usually qualify as being stored.

If you are in a state where you can cancel your insurance, then you will need to hand in your plates to the DMV because they will need proof that your vehicle is not going to be driven.

If you are in a state that still requires some sort of insurance on your vehicle, you may still be able to cancel the liability coverage of on your car.

But you would still need to hand in your tags to the DMV because your vehicle wouldn’t have the minimum required liability insurance in order for your car to be allowed on the road.

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Can I lower my comprehensive insurance if my car is in storage?

Depending on the state you reside in you need to check what, if any, are the minimum state-required comprehensive coverage options.

Some insurance companies have comprehensive plans for stored vehicles, which are less than traditional comprehensive rates for cars being driven regularly.

These special comp plans do not have liability coverage, so once again you would need to hand in your plates to the DMV because you wouldn’t be carrying the state’s required minimum liability coverage.

If you are in a state that still requires you to have liability coverage on your stored vehicle, you still can save money by taking away your comprehensive coverage completely.

If that makes you feel a bit uneasy because you are worried about loss or damage to your vehicle, then simply raise your comprehensive deductible and that will ease some of the financial expenditure for this coverage.

Remember, the higher your deductible the less you pay up front.

Granted, raising your deductible also means that you will have more out of pocket expenses if something happens to your car, but by having it stored in a safe, locked facility should lessen your fears a bit.

Will my homeowners insurance cover my stored vehicle if it’s not insured?

If you are able to completely strip away all the auto insurance on your stored car then you will be on the hook for any and all damages to the vehicle.

Read more: How to Get a Homeowners Auto Insurance Discount 

Any possessions in the vehicle will be covered by homeowner’s insurance, but not the car itself.

The options some storage facilities have is to provide insurance for your car if it is stolen or damaged while in their possession.

Moreover, some auto insurance providers have similar auto storage coverage for those who want to make sure any damages or theft upon their automobile is covered.

Are there other ways to save money if my vehicle is in storage?

Some insurance providers have what is called reduced mileage coverage meaning that you pay a lower rate based on the mileage you are going to drive.

By knowing you are not going to drive your vehicle at all, and dropping your collision coverage can save you approximately $300-$500 by going this route.

Pay as you go insurance is another type of alternative car insurance coverage which is billed on a base monthly fee and the number of miles you put on your vehicle.

So while your car is in storage all you are paying for is the base monthly fee, which drops your overall insurance premium considerably.

All in all, remember that storing a car is a costly endeavor by itself.

There are ways to save money on the insurance side, but you may want to make sure you’re not on the financial hook if something unexpected happens to your vehicle.

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