Do You Still Need Car Insurance For Broken Down Vehicle?

Insure Broken Down Vehicle in Your Yard?

Car insurance is usually associated with vehicles that are actively driven. But what about a vehicle that’s broken down, sitting in your yard, and clearly not going anywhere? Depending on where you live, you might still be legally required to carry insurance — even if the car hasn’t moved in months.

In the United States, car insurance laws are set at the state level. Most states require insurance coverage for any vehicle that is currently registered, whether or not it’s operational. If you’re keeping a car off the road temporarily or permanently, it’s important to understand what your state requires — or you could face penalties for letting your insurance lapse.

Understanding Vehicle Insurance for Non-Operational Cars

If a vehicle is registered with your state’s DMV, it is typically expected to carry at least minimum liability insurance. This applies even if the vehicle is not being driven due to mechanical issues or disuse. That’s because states often link vehicle registration to continuous financial responsibility (CFR) laws — meaning as long as the vehicle is registered, insurance is mandatory.

However, some states allow owners to remove a vehicle from insurance obligations by formally designating it as non-operational or surrendering its license plates. For example, California lets you file for “Planned Non-Operation” (PNO) status, while Florida requires you to turn in your plate to avoid insurance penalties.

To help you understand what your state expects, we’ve created a 30-state comparison table below that shows whether insurance is required for a non-operational vehicle, and what you can do to avoid unnecessary coverage.

State-by-State Insurance Rules for Non-Operational Vehicles

Note: Always verify your state’s current insurance and registration rules via the official DMV website or a licensed agent, especially if your vehicle is inoperable or stored long-term.

Note: These rules apply only to vehicles that remain registered with the state. If your vehicle is not registered, some states do not require insurance — but others may still have storage or liability requirements. Always confirm with your state DMV.

Why Insurance May Still Be a Smart Idea

Even if your state doesn’t require insurance on a parked or broken-down vehicle, dropping coverage completely can leave you exposed. Theft, vandalism, falling tree limbs, or garage fires could damage the car — and without comprehensive coverage, you’re stuck with the bill.

There’s also the risk of accidental damage. If someone injures themselves on or near your parked vehicle, you could face liability. Maintaining a “storage insurance” policy (also called comprehensive-only or parked-car coverage) can provide peace of mind at a reduced cost.

Cost-Effective Coverage Options

If your vehicle won’t be driven for an extended time, consider switching to:

• Comprehensive-only insurance: Protects against theft, fire, weather, and vandalism.
• Storage insurance: Specialized for vehicles parked long-term, often seasonal or collector cars.
• Policy suspension or downgrade: Some insurers allow you to pause liability and collision, keeping only basic protection.

Make sure to notify your insurer about the car’s status to avoid issues with claims or lapses. Also, consult your DMV to see what documentation is required to pause insurance legally.

Final Thoughts

Just because a car is broken down doesn’t mean the rules disappear. In many states, if it’s registered, it needs insurance. Skipping this step can lead to fines, registration suspension, and even reinstatement fees.

Use the chart above to check your state, and when in doubt, call your insurance provider or DMV. A quick conversation could save you money — or keep you out of legal trouble.

Need more help? See our state-by-state car insurance requirements for full coverage laws near you.