Does having a garage lower your car insurance?

Yes, drivers who regularly park their car in a garage may see slightly lower car insurance rates than drivers who park in a driveway or on the street.

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Rachael Brennan

Rachael Brennan

Senior Editor & Licensed Auto Insurance Expert

Rachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.

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For drivers with full coverage, parking in a garage might mean slightly lower rates than if you parked in an exposed driveway or on the street, because keeping your car in a garage helps protect it from risks like theft, vandalism, and damage from weather or falling objects.

Key takeaways

  • Many insurance companies offer lower rates on your full-coverage policy if you park your car in a garage because it reduces the chances of damage to your vehicle.

  • A garage helps protect your car from fire, hail, falling objects, and theft, which is one reason why your insurance company may offer lower rates for parking in a garage.

  • If you park your car on the street and it gets hit by someone who just drives away, your collision coverage has to pay for the damage, which is another reason why your insurance company may offer lower rates for parking in a garage.

Does parking in a garage lower your car insurance?

It might, depending on what type of car insurance you have. Many insurance companies offer lower rates if you park your car in a garage, but only on full-coverage policies. 

And remember, you’ll only get the lower rates if you indicate that you actually park your car in your garage — simply having a garage on your property won’t earn you any savings if you keep your car in the driveway. 

Liability insurance

Liability insurance pays for damage you cause to other people or their property in an at-fault accident. It includes both bodily injury liability coverage (which covers the other driver’s injuries) and property damage liability coverage (which pays for damage to their car).

Parking in a garage won’t prevent liability claims, so drivers won’t save on their liability insurance for parking indoors. This means drivers with liability only coverage won’t see a change in their insurance rates for parking in a garage.

→ Learn more about liability coverage

Comprehensive and collision insurance

Comprehensive insurance pays for non-collision related damage to your vehicle, like damage from weather, falling objects, fire, vandalism, animals, and theft. Parking your car in a garage helps protect it from all of these dangers, reducing the likelihood that you’ll need to file a comprehensive claim.

Collision insurance pays for damage to your car that is caused by a collision, no matter who is at fault. This applies to collisions with another car, like if you’re in an accident on the highway, and collisions with stationary objects, like a tree or a fence post. If you park your car on the street and it gets hit by someone who just drives away, your collision coverage would pay for the damage.

Many car insurance companies will charge you lower rates on your full-coverage policy if you park your car in a garage because it reduces the chances of comprehensive or collision damage to your vehicle, making the company less likely to need to spend money to fix your car.

→ Learn more about comprehensive vs. collision coverage

Does parking on the street raise your insurance rates?

It might. Drivers who park their car on the street are more likely to file a claim, because parking on the street means more risk than leaving your car in a garage. For example, a chipmunk could crawl under the hood and chew up the wiring in your car or an inattentive driver could sideswipe your vehicle in the middle of the night. 

Parking your car in a garage protects you from this kind of damage, which is why your insurance company may charge you a lower rate if your car is parked safely in a garage.

Is it better to keep a car in a garage?

Yes, keeping your car in a garage is usually better than parking it on the street or in your driveway. Parking your car in a garage protects it from weather damage, theft, and the potential for other drivers to hit your car while it is parked.

But there are some potential downsides to parking your car in a garage. For example, a garage can become very damp, especially in humid weather, which isn’t good for the metal parts of your car. That said, when it comes to parking your car in a garage, there are far more benefits than drawbacks.

What does “garaged” mean for car insurance?

The term “garaged” is used by insurance companies to mean where your car is usually parked. This typically means your address or the address of the location where your car is normally parked overnight. Even if you are parked on the street or in an open driveway, insurance considers the address where that space is located the place where your car is garaged.

This is different from actually parking your car in a garage. Drivers who park their car in their garage or in a covered parking space that is separate from the street (like a parking garage) are often charged a lower rate for full coverage insurance than people who park their car in an open driveway or on the street.

Pros and cons of parking in a garage

Generally, keeping your car in a garage is a good idea. There are many benefits (and just a few drawbacks) to parking in a garage, including:

ProsCons
Protects your car from weather, animals, falling objects, and other comprehensive damageDamp conditions indoors can contribute to a higher likelihood of rust and corrosion
Protects your car from other drivers while parkedIncreases the possibility of hitting a wall or scraping your car along the sides of the garage
Could earn you lower car insurance ratesA fire caused by an appliance or flooding from a burst pipe could potentially damage your car as well as your home

Because you are less likely to file specific types of claims if you park in a garage, some insurance companies offer a lower rate to drivers who park their car inside. 

And if both your car and your garage are damaged in the same event, like a fire or a flood, having both your homeowners and auto insurance with the same company (called bundling your insurance) can make the claims process easier.

Frequently asked questions

Does a car rust faster in a garage?

It can, but it isn’t a guarantee. Driving in snowy winter weather means your tires kick up a fair amount of ice and road salt. When the ice melts, the salt can cause rust and corrosion, and parking your car in the garage means the ice is more likely to melt than if it were parked outside in the cold.

Can my insurance company require me to park in a garage?

Most car insurance policies don’t require it, but some may require you to keep a car in a garage. For example, some classic car insurance policies can require you to keep your car stored in a garage as part of the terms of your contract.

Do cars last longer in garages?

Yes, cars that are kept in a garage are protected from weather, animal-related damage, and other issues that can cause wear and tear on a vehicle.

Is it better to keep your car in the garage in winter?

Keeping your car in the garage during the winter can protect it from ice, snow, and freezing temperatures, so parking in a garage can be beneficial in the wintertime. However, some experts say that parking inside in the winter can contribute to rust and corrosion from road salt.