Do You Get an Insurance Discount for Parking in a Garage?

Last Updated on March 6, 2021

With vehicle insurance premiums at an all-time high, consumers are looking for every discount available. Car insurance discounts vary depending on the insurance company. Some insurance companies, like Liberty Mutual and National General, offer over a dozen different discounts for various reasons. Other companies like Nationwide provide less than a dozen different discounts.

One deal that policyholders are looking for is a discount for parking in the garage. It used to be an extremely popular discount granted by several insurance companies; however, that’s simply not the case anymore.

Garage Discount

Several insurance companies offer a discount for parking in the garage; however, it all depends on the policies you hold. If you keep a liability policy, don’t expect a garage discount. If you have a comprehensive or collision policy, you may qualify for a garage discount. You will need to check with your insurance company to see if they offer a garage discount.

Why a Discount?

If your insurance company does offer a discount for parking in the garage, it will only be about 5%. Vehicles that get parked in a garage qualify for the discount because they receive protection from weather, vandalism, theft, and other elements.

When you park in a garage instead of on the street, you are less likely to get hit by another car. No one can side-swipe your vehicle when it is in your garage. When your vehicle is in the garage, it is out of the weather elements, including hail or damage from objects blown by the wind, like a tree branch breaking.

Along with the weather, parking your car in a garage will help protect against winter weather. Winter brings icy roads and a frozen vehicle. Parking in the garage will prevent other cars from sliding into it on the street or in your driveway when the roads are icy. It will also prevent ice from forming on your vehicle.

Theft and vandalism of your vehicle are less likely to occur when you park in the garage. Insurance companies often charge higher rates for people who live in high crime areas because cars can be broken into, stolen, or vandalized. Parking in a locked garage increases your vehicle’s protection against such crime.

Parking in a garage will help protect your car, and some insurance companies offer a discount for this reason. However, other companies may charge you a higher premium if you park in the garage.

Why a Higher Premium?

One reason insurance companies charge a higher premium when parking in the garage is because of self-inflicted damage. Drivers often hit the sides of their garage while pulling in or forget to raise the garage door when they are backing out. These silly mistakes can cost policyholders an increase in their auto insurance premium.

Although bundling insurance policies offer a discount with most companies, you may receive a high premium from your home insurance company if you bundle your homeowner’s insurance and your auto insurance and park your vehicle in the garage. Homes are more likely to be broken into if you park your car in the garage because thieves think no one is home. Installing a security system may help you get lower rates from your insurance company.

Required Garage Parking

It is not very often that insurance companies require policyholders to park in a garage. The most common instance of this requirement happens when insuring a vintage vehicle. Insurance companies usually cover a classic car’s entire value with no deductible, so there are tighter requirements.

Hagerty is a top insurance company for insuring classic cars. In order to qualify for their insurance policies, you must park your vehicle in a locked garage or storage unit. If you park the car under a cover or carport, you will not be insured.

Your classic car can not be your day to day vehicle, and most insurance companies require a picture of the garage before they will insure. Since your vehicle is not driven every day, it is less expensive to insure. People with classic cars tend to take care of them better, and they are considered low-risk policyholders.

Low Risk

When auto insurance companies insure vehicles, their rates are often determined by risk. How likely are you to file a claim and make the insurance agency payout? You will be classified as low risk, medium risk, or high risk based on your driving history. All new drivers are high risk, and as you get older, your level of risk decreases. Vintage car owners are generally older drivers who take care of their vehicles, so they are a low-risk, which means lower rates.

Who Gets the Discount?

Each insurance company is different, and who gets the garage discount varies by company. Remember, some companies don’t offer a garage discount. Some companies provide the garage discount only to classic car owners, military personnel, and those who plan to store their vehicles for an extended amount of time due to traveling abroad or other situations.

New York State Garage Discount

Unfortunately, New York doesn’t have any special garage discount, and they are like every other state. Receiving a garage discount is based on your car insurance company, not on your state of residence. If you want the discount, ask your insurance company to see what discounts they offer. Specifically, ask for a garage discount to see if your insurance company provides it.

Final Word on the Garage Discount

Parking in the garage can help protect your car; however, it may not offer you a discount depending on your insurance company. If your garage is full of Christmas decorations, unfinished projects, and last year’s moving boxes, it may not be worth cleaning it out to get the family minivan parked inside its four walls. Talk to your insurance company today to see if they offer a garage discount. If you are looking for a new company, let us help you! Scroll to the top of the page and enter your zip code to get started.