Do you need car insurance on a car you do not drive?

Answer 1

No. Except if you want to think about the possibility of that car being stolen. If it is not on a home owners policy, then you should have some sort of theft insurance on it. But if the car is not being driven on the road you do not need insurance on it.

Clarification:

A homeowners insurance policy will not cover your vehicle; you have to have a separate auto policy for it. But if you have a car that you are not using and don't plan to use, you can turn the license plates in to the DMV and then cancel the insurance on the car.

Another take: actually, this depends on the state. I lived in Oregon for many years, and according to state law, all Oregonians are required to have car insurance on ALL CARS THEY OWN, even if the car is not used. Granted the majority of people who have cars they never drive don't bother to insure them (I wouldn't), but if a car does not have insurance, even if not driven, it can be towed.

Check your state laws on this. The answer varies by state.

ONE MORE THOUGHT: If the vehicle is financed, the contract you signed with the bank or finance company probably requires you to have physical damage coverage on the vehicle as well. I agree with the "Clarification" and "Another Take" in that laws vary from state to state so check your state laws. Homeowners policies specifically exclude coverage for any self-propelled vehicles other certain types such as lawn mowers. In most states you cannot have tags without proof of insurance. In Georgia one day with an active tag but no insurance will get you a fine. Continuous disregard will result in increased fines, registration revocation, impoundment of the vehicle, and cancellation of your drivers license.

If your particular state requires it and the vehicle is registered, then you probably need to insure it.

If you are storing the car in a garage, you may want to insure it with a personal property insurance plan. Those are pretty cheap and only insure something to it's full value. Many car collectors have invested literally thousand upon thousands of dollars in their cars so they unsure them for their value in case of fire or other unforeseen damages. Home owner's insurance may cover a vehicle if it is garaged if the car is listed as an asset on the homeowners policy as a personal property investment but that is a very gray area.