How to Lower Insurance Premium on Your Stored Summer Vehicles

Here today, gone tomorrow. Living in New England, it can sometimes seem like warm and sunny weather can turn cold and wintery overnight.

And if you have an antique car, sports car, or some sort of vehicle you only use in the summer, this time of year usually corresponds with storing that vehicle away until the nice weather returns.

But while your seasonal vehicle is sitting in the garage collecting dust for several months, you’re still getting those insurance bills for it every month, which can be frustrating. We know that nothing seems quite as pointless and wasteful as paying for something you aren’t using.

If you can relate, you might think it may just make sense to cancel insurance for a car you aren’t driving, right? 

Well, it’s not that simple. 

At Berry Insurance, we often help some of our clients with seasonal vehicles reduce insurance costs while the vehicle isn’t in use. And we can help you too!

There are actually several ways you may be able to save premium on your summer vehicle. We’ll get into them all in this article.

Is cancelling my car insurance policy an option?

In Massachusetts (and other states), in order to maintain a vehicle’s registration, you need to have at least the state’s minimum auto insurance requirements.

If you wanted to cancel insurance on a vehicle altogether, you would need to cancel the registration with the Registry of Motor Vehicles first. While you could do that, it probably wouldn’t be worth the hassle to cancel, then reinstate and pay for the registration when you’re ready to drive it again.

Plus, if you did cancel your car insurance, your vehicle wouldn't be covered if it were stolen or damaged while in storage, and your policy could become more expensive when you renew in the spring.

Here’s how you can actually save on your summer car insurance:

While you can’t cancel auto insurance or remove the vehicle you aren’t using from your policy, there are some other options if you want to save money on your car insurance.

See if you’re eligible for a low mileage discount:

Most insurance companies offer low mileage discounts to drivers who do not drive often.

After all, the less you are on the road, the less risk you are at of having a claim and costing the insurance company money.

So if you don’t drive your summer vehicle often, there is a good chance you may be eligible for a low mileage discount.

The average American drives approximately 13,000 miles per year, but if you drive less than 7,500 miles per year, you may be eligible for a discount from 5-10% depending on how little you drive, and the rate your insurance company designates for you. 

Generally, the less you drive, the greater your discount will be.

To assess your eligibility, your agent or insurance company can check Registry of Motor Vehicles records for the mileage reported on your vehicle during your last inspection. But keep in mind, if you’re late getting your inspection, you may miss out on the discount because your insurance provider will not have an up-to-date mileage record to use.

Even if your car is more of a summer vehicle, you should consider driving it occasionally throughout the year to prevent any engine buildup and assure the car is running smoothly by the time summer rolls around. Learn more tips on protecting stored vehicles by checking out this article: 6 Tips to Maintain a Car You’re Not Driving. 

Consider classic car insurance

If your summer vehicle qualifies as a classic car, you may be able to save money by getting classic car insurance rather than standard auto insurance.

Classic car insurance, sometimes referred to as antique car insurance, covers a variety of classic cars, trucks and other vehicles, including antiques autos, collector and vintage cars, some modified and newer vehicles, motorcycles, and other specialty vehicles. It is similar to standard car insurance, offering most of the same protections, but it is designed for collectible vehicles that aren’t driven every day. That means it has lower prices and unique services.

In fact, you can generally save around 35% on a classic policy vs. a standard one, so it may be worth checking with your agent to see if you qualify.

Remove Optional Coverages

As we mentioned above, you shouldn’t just cancel your auto insurance policy if you aren’t driving your vehicle. You should at least maintain MA state minimums, and comprehensive coverage which will cover your vehicle from risks such as storms, fires, and theft.

However, there are some option coverages you may be able to go without while storing your summer vehicle.

Collision:

Collision insurance offers coverage to repair or replace your vehicle if it is damaged in an accident.

Since you will be storing your vehicle and not driving it, you could consider removing collision coverage.

However, you’ll want to make sure your vehicle is stored safely away from other operational vehicles, because without collision, your vehicle would not be covered if it was damaged in a hit and run.

Substitute Transportation: 

Substitute transportation insurance will pay for at least a portion of the cost of a rental vehicle if you need one due to a covered loss while it is being repaired or replaced (if you have collision insurance). 

Since your summer car is likely your secondary vehicle, you probably don’t need substitute transportation in the first place, so if it is included on your policy, you may want to remove it.

Roadside/towing:

Many insurance companies offer roadside assistance or towing insurance if your car breaks down on the side of the road and you are unable to get it to a mechanic. 

Since you aren’t driving your vehicle, this is another coverage you do not need.

Lower your coverage limits:

If you aren’t driving your vehicle, reducing your liability coverages to the state minimums to maintain your registration may save you some money.

Keep in mind however, if you have an umbrella insurance policy, you will not be able to reduce your liability limits.

It’s also worth noting the state minimums are usually not enough to cover you when using your vehicle, so if you begin driving it again make sure you raise your limits.

Choose a higher deductible plan

Of course, you can also lower your premium in general by selecting an auto insurance plan with a higher deductible. 

Doing this means you’ll be paying less per month, but will have to pay more if you get in an accident, so if you select a higher-deductible plan, you’ll want to make sure you have enough money set aside in case you need to cover damages from an accident, or change it back to a lower deductible plan once you start driving again.

Bundle policies:

Many insurance companies offer incentives for the more business you provide them. By bundling your car insurance with other policies (such as homeowners/renters/condo) within the same insurance company, you may be able to save approximately 5-25% on your policies.

If you’re not already bundling policies, this will help you save money on your summer vehicle’s premium, regardless of the time of year.

Pay via EFT/ACH or pay ahead

Paying for your auto insurance through electronic funds transfer (EFT), automated clearing house (ACH), or paying the premium up front can eliminate billing fees.

If you’re comfortable with your payment automatically withdrawing from your bank account each month, or if you can afford to front the premium, these methods can save you both time and money.

Ask your agent about any discounts:

Your summer vehicle may also be eligible for other discounts, such as:

• Being a member of an association (such as AAA, AARP, alumni associations, wholesale clubs, military organizations, honor societies, and more)
• Giving to a charity 
• Getting good grades (insurance companies reward both high school and college drivers for earning good grades)
• Being a safe driver (drivers without accidents or violations for a certain period – usually five years – can save hundreds on their insurance through a safe driver or good driver discount)

Ask your agent if you are eligible for any discounts that aren’t already applied to your policy.

Protect your summer car year round 

When it comes to your summer vehicle, your insurance needs change throughout the year. So how do you make sure your insurance is up to date?

It’s simple. Just keep in mind the words of Carole King:

Winter, spring, summer, or fall. All you have to do is call (your insurance agent) and they’ll be there (to make sure your car is protected based on your current needs and driving situation).

(I apologize if “You’ve Got a Friend’ is stuck in your head for the rest of the day.)

Your agent can help you reduce coverages when the weather gets wintery, and reinforce them when you’re ready to break your car back out again.

But just remember, before you drive your car again (whether it be taking it back out on the road for the season, or just taking it for a quick spin on one of those fluke warm days in December) you need to make sure you reinstate any of the summer coverages you had to be fully protected.

If this is the case for you, it sounds like you may be talking to your insurance agent more often than the average policyholder. So you definitely want to make sure you’re working with an agent who is experienced and trustworthy, and who you get along well with.

If you aren’t sure that your insurance agent is the right match for you and your vehicles, check out this article: When to Consider Switching Insurance Agencies.