Parked Car Insurance in Texas
Parked car insurance in Texas is used as an interim solution for a car that will not be used for an extended period. Insurance companies offer storage coverage to minimize the impact of a natural disaster on their customers. This type of coverage eliminates the need for auto liability and collision coverage. Parked car insurance helps you pay for repairs or replacement of your car if it gets damaged while parked or out of use for less than 30 days.
What is the Purpose of Parked Car Insurance?
Texas parked car insurance aims to provide vehicle owners with the peace of mind that their vehicles are protected against various damages other than collision when it is parked. It also seeks to minimize the financial uncertainty of parking a car.
Is Parked Car Insurance Required by Law in Texas?
No, Texas does not require people to purchase parked car insurance. However, if you take out a loan for a car, your lender may require you to carry parked car insurance coverage on the vehicle to protect their interest in the event of a covered loss. Notwithstanding, this is not a state requirement that can lead to a violation of any Texas law. If you are unsure about the insurance requirements for your vehicle, speak to a licensed insurance agent.
How Does Parked Car Insurance Work in Texas?
A parked car insurance policy provides financial protection for a parked car after being damaged due to accidents outside the policyholder's control, like hail, flood, and fire. It also covers the replacement of the vehicle if it is stolen.
What Does Parked Car Insurance Cover?
Parked insurance provides coverage to your car in the following circumstances:
Theft
Fire
Vandalism
Acts of nature
Falling debris
Note that parked insurance will only cover your car if it has been parked in a particular place, off the street, or in a locked garage over a period specified by your insurer. This mainly applies to rarely driven vehicles, vehicles needing repair, and vehicles belonging to deployed military members.
Does Parked Car Insurance Cover - FAQ
To discuss your specific needs, speak with a knowledgeable property insurance professional. Below are some of the most commonly asked questions about parked car insurance in Texas:
Does Parked Car Insurance Cover Theft?
Yes, if someone steals your parked vehicle and you cannot recover it, your parked car insurance will cover the loss. Your insurer will pay you the actual cash value of your car. However, before filing a claim with your insurance provider, ensure you rule out possibilities like:
The vehicle being towed away for parking illegally or
Repossessed for being behind on payments
Once you have confirmed this is not the case, you should file a police report and contact your insurance provider to file a car theft claim.
Does Parked Car Insurance Cover Theft of Personal Items?
No. Your parked car insurance will not cover personal items stolen in your covered vehicle. Even if your car were stolen, your insurer would only pay a claim covering the theft of the vehicle, not the personal items in it. You will need a renters or homeowners policy to cover your personal belongings stolen from your parked car. Also, you can purchase electronic device insurance to cover personal belongings like cell phones, laptops, and other devices you choose to cover.
Does Parked Car Insurance Cover Repairs?
Yes, your parked car insurance will cover repairs caused by covered events like vandalism, animal attack, and natural disasters like heavy winds, tree falling, and fires. However, where a collision with another vehicle caused the damage, parked car insurance will not cover it. The auto liability insurance policy of the at-fault driver will cover the repairs of your parked car.
Does Parked Car Insurance Cover Flood Damage?
Yes. Parked car insurance is also considered comprehensive coverage; this means your parked car will be covered if there is a flood. Parked car insurance will pay for the repair costs. Otherwise, the insurer will reimburse you the car's actual cash value minus the vehicle's depreciated value if it is declared a total loss after the flooding event. Since the coverage is optional and not all drivers have flooding as a covered event, it is best to confirm your policy covers flooding events before filing a claim with your insurer.
Does Parked Car Insurance Cover Hail Damage?
Yes, your parked car insurance policy will cover damages caused by hail. Hail can be pretty destructive and can cause damages like a cracked windshield, broken rearview mirror, or dent in the vehicle's body. Parked car insurance will cover the damages by paying for the repairs minus your deductible.
Does Parked Car Insurance Cover Being Hit While Parked?
No, parked car insurance will not cover repairs or replacement of your damages caused to your vehicle by another vehicle's collision. When another car hits your parked car, the liability of paying for repair costs will fall on the at-fault driver. Their auto liability insurance policy will help pay for the repairs of the damages caused to your vehicle.
In case of a hit-and-run accident, where your parked car is damaged, the basic Parked Car insurance will not be enough. If you want protection from such an accident, make sure to add Collision or Uninsured Driver coverage to your policy.
Does Parked Car Insurance Cover Vandalism?
Yes, parked car insurance will cover damages caused by an act of vandalism. Vandalism damages like scratches, smashes, broken glass, graffiti, tire slashes, and window smashes will be covered. Your insurance provider will pay for the cost of repairs or replacement of any damaged car part. Note: Make sure to document the damage, file a police report, and inform the insurer right away, so that there is no confusion that it was not caused by an accident. If the accident is indeed caused by an accident - parked car insurance will not cover it.
Does Parked Car Insurance Cover Windshield Replacement?
Yes, your parked car insurance will cover windshield repair or replacement. Where your car windshield cracks or breaks while parked, you can rest assured that your parked insurance will cover it.
Per Texas transportation code, it is illegal to drive with windshield damage if it will obstruct the driver's view or change the shape of the glass. Even though parked car insurance covers the windshield replacement, you should always confirm that your policy covers your windscreen.
What is Parked Car Insurance Good for?
Parked insurance is a type of coverage normally added on top of the basic liability insurance that protects a vehicle parked after it gets damaged due to an event other than a collision.
For instance, if a car gets damaged due to a hail storm or flooding, the insured's parked car insurance policy will cover the cost of repairing the damage. It also covers the cost of replacing the vehicle if it gets stolen.
This type of insurance coverage is also ideal for people with high-value cars, especially collectors, who may rarely drive the cars and keep them stored in a garage (away from where they can be damaged by passers-by). Parked car insurance will pay the actual cash value of an insured’s vehicle in the event of theft or other covered peril.
Speak to a licensed insurance agent in Texas to learn more about the various advantages of parked car insurance.
What is not Covered by Parked Car Insurance?
Parked insurance will not cover the following:
Mechanical or electrical failure - unless it is caused by a covered event,
Hit-and-run damage - which is covered by Collision or Uninsured Driver,
Wear and tear - covered by the vehicle’s warranty
The intentional act of the insured - possibly covered by Liability insurance
If you have further questions regarding parked insurance coverage, speak with an insurance agent licensed in Texas to clarify the exclusions of parked car insurance.
Who Can Get Parked Car Insurance in Texas?
A parked car insurance policy is a type of insurance that provides coverage for damages done to a parked vehicle. It can be purchased by individuals who do not want to bear the financial cost of repairing or replacing their damaged parked vehicle, and/or who want to save on the cost of full coverage, while they are not driving a parked car all the time. It can also be obtained by people who purchased a car with a loan, if their loan contract mandates this requirement.
Who Qualifies for Parked Car Auto Insurance?
Driver's license holders who are 18 years or older, who have a current state-required auto liability insurance policy, are eligible for parked car insurance.
Who Needs Parked Car Insurance in Texas?
Generally, you need Parked Car insurance if your vehicle has an active state registration and is not being driven. Switching from full coverage to liability and parked car coverage only can save you over 50 percent of costs. You may need parked car insurance coverage if your vehicle is:
A collectible that is stored for most of the year, to be driven only during special events.
Being worked on as a project and is not being driven on the road.
Parked for an extended period of time due to the owner being away (military members, overseas contractors, or anyone who leaves the vehicle parked for over a month a time)
Make sure to discuss your auto insurance needs with a knowledgeable Texas state-licensed property insurance professional, who can assess your needs and suggest the possible coverage solutions.
Who Should Get Parked Car Insurance?
You should get parked car insurance if:
Your vehicle will be parked in a storage facility, garage, or under a secure cover, for more than 30 days
The locality is prone to have severe weather conditions
The crime rate in the area where your car is parked is on the high side
The value of the car is worth more than something you can pay out of pocket
Parked car insurance allows you to suspend your other auto insurance policies like liability, collision, and uninsured motorists when the policy is active. While in a protective storage, this can save you up to 80% of your regular premiums.
Note: Parked insurance is not a state requirement; it is an optional add-on (supplemental policy) to protect a parked car.
When Do you not Need Parked Car Insurance?
Generally, you do not need parked car insurance if you will not be parking your car for a period of 30 days or more. Speak to a state-licensed insurance agent before purchasing or dropping your parked car insurance coverage.
