Here’s a thing we didn’t know; sometimes it can be the case that parking your car inside a cosy garage overnight increases your insurance premium, rather than reduces it. Here’s the word from Go.Compare;
New research has found that using your garage as your main parking space at home can have a negative impact on car insurance premiums. According to the data, the average cost of policies for cars which are stored in a garage overnight is £54 more expensive than the average for cars stored at other places around the home.
The research, conducted by Go.Compare car insurance, reviewed the cost of policies bought through its site between May and July of this year. It then split the figures by those who keep their car in a garage overnight and those who leave it somewhere else around the home. Surprisingly, the average cost for those who park their cars in a locked garage was £710, compared to just £656 for other home parkways.
The difference was even more apparent for fire and theft policies. Data analyst Bronson Trebbi explains that the average third-party fire and theft policy costs £1,053 for those who park their car in a locked garage, while those who park elsewhere around the home pay only £875 on average – a substantial £178 reduction.
RESIDENTS CAR PARK PENALTY
Keeping a car on the drive seems to be better for premiums than in a garage, costing £627 on average – £85 less than in the garage. Parking on the road outside your home or in a residential car park is slightly more expensive than in a garage, bringing average premiums of £729 and £741 respectively. (Interestingly, IE has yet to discover an insurance brand that notes the difference between a secure, electric gate residents car park, and one that is open to any random delivery driver or passing e-scooter jockey – Ed)
The findings also suggest that drivers’ preferred parking place is already changing. Go.Compare’s figures showed a 28% decline in vehicles being parked in a locked garage between 2018 and 2022. This was by far the most significant drop compared to the other locations Brits used for car storage.
In contrast, the number of policies for those keeping their car in a work car park overnight doubled between 2018 and 2022. There was also a 36% increase in drivers keeping their vehicles in a secure car park, suggesting that motorists are now looking for alternative secure car parking options for their vehicles.
Overall, the most common parking spot was on the driveway at home, with 60% of policies being for those who keep their car here overnight. Just over a fifth (22%) said they leave their vehicle on the road outside their home, while only 12% said they use a locked garage.
However, the comparison site suggests that drivers assess their circumstances before making the switch to save cash.
Tom Banks, car insurance expert at Go.Compare, says: “There are various reasons why keeping your car in a garage may result in a more expensive premium. Some insurers may feel garages can pose their own security risks. If the garage is connected to your property, your car could get taken in the event of a home break-in, while if the garage is unconnected, you may be unable to hear the thief entering your car.
“Insurers may also feel the car is more likely to be damaged if you keep it in a garage. For instance, there could be a greater chance of bumps and scrapes when trying to fit today’s larger cars into small garages. Items being stored in the garage, like a toolbox, could also fall onto the vehicle and damage it.
“However, it’s key that you consider your circumstances carefully before changing where you park. If the alternative to your garage is somewhere more exposed, like on the road outside your home, then your policy could go up rather than down, and you’d be making your vehicle more vulnerable in the process. Ultimately, security is the most important factor, so if your garage is the safest place for your car, then keep it there.
“Plus, every provider assesses the risk of where you park differently, so it’s important to remember this before switching your parking place. Many insurers may still feel that your garage is a safer place to park, so consider the security of all your options and how they may impact your own individual policy before making a move.”
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