Is Your Car Insurance Cheaper When You Park in a Garage?

Last Updated on December 19, 2019

When it comes to car insurance, we’re always looking for an easy way to save money on premiums. One way that you can potentially save money on car insurance is by parking in a garage. Car insurance companies like to offer lower rates to people who are less likely to file claims, and when you park your car in a garage, your car will be more secure and less likely to sustain damage than if you park on the street. Here’s what you need to know about parking in a garage and how it can affect your insurance rates.

Is Your Car Insurance Cheaper When You Park in a Garage?

How Much Can I Save by Parking in a Garage?

While you can save money by parking your car in a garage, it isn’t a huge amount. While discounts vary by company, don’t expect to save more than 5 percent with a garage discount. If you only have liability insurance, you likely won’t get a discount for parking in a garage. This is because liability insurance only covers the other party’s expenses if you get into a crash, and parking in a garage won’t significantly affect your chances of colliding with another car. However, if you have comprehensive insurance, you can expect your insurance to be slightly lower when you park your car in a garage.

There are some unique situations where your car insurance might be slightly higher because you park your car in the garage. This is because statistically, you might be slightly more likely to collide with the walls of the garage when backing in or out. However, most companies won’t increase your insurance because of this, and even if they do, the increase would be very marginal.

Why Do Insurance Companies Offer This Discount?

Insurance companies offer lower rates to those who are less likely to file claims and charge more to those who statistically are most likely to file claims. Paying out insurance claims is expensive, so insurance companies will charge higher rates to compensate for those who present a financial risk. Since parking in a garage means you’re statistically less likely to be the target of a collision or vandalism, insurers will adjust your rates accordingly. In some rare cases, your insurance company may even require you to park in a garage instead of parking your car on the street. This usually happens if you are trying to insure a very valuable car or a classic car.

Why Should You Park Your Car in a Garage?

There are many benefits to parking your car in a garage. Having a private garage on your property is ideal because it is very secure. However, parking in a large multi-car garage will still provide more protection for your car than being out on the street. If you live in a very dense, urban area or an area that is known for crime, your insurance rates will likely be much lower if you park in a garage, because you will be much less likely to be a target for street vandalism, or even worse, having your car broken into or stolen.

Parking your car in a garage also means you won’t experience damage from the weather. If you live in an area with intense winter weather, the snow and ice can be very harsh on your car. You won’t have to worry about snow and ice piling up on your windshield and leading to visibility issues. A garage can also protect your car from falling tree branches and other flying objects on windy days, or damaging hail during a storm. You also won’t have to worry about water damage from flooding on the streets. Finally, you won’t have to worry about damage to your paint as a result of prolonged sun exposure.

Most importantly, parking your car in a garage means you’re less likely to be the target of a collision. When you park on the street, there’s always a chance another car could hit you when they are parking or driving by. Parking your car in a garage will prevent you from being the target of a costly hit-and-run, which is another reason why insurance companies reward it.

Is Parking in a Garage Worth It?

Of course, there are many things to take into consideration when deciding where to park your car. If you already have a garage on your property, or your landlord provides free parking in a multi-car garage, then parking there is a no-brainer. However, if you don’t have free access to a garage, the consideration is a little more complicated. You’ll need to weigh the cost of paying for garage parking with the discount you would get on your insurance. You should also consider the general safety of your area and how likely you are to be a victim of vandalism or a hit-and-run should you park on the street. For example, if you live in a relatively quiet residential neighborhood, the risk of parking on the street is likely very low, whereas if you live in a more crime-ridden area, it will likely make more sense to invest in a space in a protected parking garage.

While parking your car in a garage won’t earn you a huge insurance discount, it is one of the many factors that can help you lower the cost of your premiums slightly. If you already park your car in a garage, be sure to ask about a discount when you sign up for insurance.

James Shaffer
James Shaffer James Shaffer is a writer for and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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