23 May How much can you save on car insurance by using a garage?
Car insurance can be one of the most expensive aspects of owning a car, so understandably, many of us are always looking for ways to lower it. One trick you might have heard of is that keeping your car in a garage lowers insurance, but is this actually true and if so, how much can it save you? In this blog, we run down everything you should know.
The benefits of using a garage
Car insurance rates are calculated based on how likely you are to submit a claim, taken from the information you provide to the insurance company. So, if you tell them that you will be parking your car in a garage overnight rather than on a driveway or the street, this is taken into consideration and does have some benefits in terms of lowering how much you pay.
This is because a car that is securely kept in a garage is generally less likely to be damaged than one that is outside. This is down to a number of factors, including that it reduces the chance of collisions from other vehicles driving past, whether that is a quick swipe that dents the body or a full-on, serious collision that totals your car.
Also, vandalism from criminals is not a risk when the car is safely stored inside, nor is unexpected weather damage from hail, ice and wind, or falling tree branches.
Plus, a car that’s behind a locked door is much less likely to be stolen as there is an extra layer of protection to put thieves off. This is important for any car owner but especially if yours is an expensive model that is particularly attractive to criminals. If you live in a high-risk area where crime rates are high, you may even be required to park in a garage in order to take out a policy in the first place.
The drawbacks of parking in a garage
All of these factors seem to indicate that using a garage will result in discounted car insurance, but there are other things to consider that mean the benefits may not be as significant as you think. Although storing a car in a garage is generally a good idea to protect your vehicle from damage, there are risks that come with a garage that insurance companies consider. For example, you are more likely to accidentally scrape the car when trying to park in a tight garage.
What’s more, if your garage is attached to your house and you have a break-in, then your entire property is at risk, including the vehicle. Thieves may be encouraged by not being able to see a car outside the house and assume this means you are not home, increasing the likelihood of them trying to get in. If your house and garage are separate, then you may not hear your garage being broken into.
How much can you save?
Because of all of the above factors, there is no guaranteed fixed rate that having a garage will save you on car insurance. In general, a garage is less risky and insurance will be cheaper, with savings of up to 8.5% on yearly premiums to be had. However, this is highly variable.
The insurance firm takes into consideration many factors, such as your location. If you live in a place with high crime rates, on a busy road, or with high-risk weather, the benefits of having a garage are likely to be greater for you and reflected in bigger drops in insurance prices, but the insurance premium will start off higher. More significant savings can be had if you invest in a car security system or bundle your home and motor insurance together to better protect you from theft.
Don’t lie on your insurance application that you have a garage just to save a few dollars. This is considered fraud and will cost you a lot more in the long term. Also, make sure you lock your garage if you have one or your insurance claims could be invalidated.
Looking to build a garage in South East QLD?
There are undoubtedly benefits to parking your vehicle in a safe, secure garage. At Just Sheds, we can construct a custom garage to suit your needs that is guaranteed to be of the best quality. Contact us today to find out more.