The impact of overnight parking on car insurance

Why parking securely matters

When you buy car insurance, you’ll be asked where you park your car overnight. That’s because the cost of your policy is affected by where you keep the car and how safe it’ll be there.

Don’t worry, your insurer’s only interested in where you normally park your car – so you’ll still be covered if you occasionally park elsewhere.

If you have a telematics policy, your black box roughly tracks your car’s location, so your insurer could easily find out if you’re not honest about where you regularly park.

The Office for National Statistics (ONS) reported a 25% increase in motor vehicle theft between March 2016 and March 2021, so it’s no wonder insurers are wary about security.

The epidemic has been fuelled by convenient keyless car technology that allows criminals to hack into and open vehicle doors remotely without a toolbox in sight.

But even if your car is keyless, it stands to reason that if your car is kept out of sight in a secure garage, the thieves may prefer to look elsewhere. And your motor insurance quote will usually benefit.

The best place to park

“It’s all about risk-based pricing,” says Graeme Trudgill of the British Insurance Brokers Association. “If the car is parked in a garage overnight and locked away, your risk of theft in a central city area is much reduced.

“If it’s a car that’s attractive to thieves, having it off-street in a garage will be seen as something worthy of a good discount. You can also get a discount for a vehicle kept on a driveway as it’s less likely to be hit by a passing car – when it’s left on the road it’s most at risk and most on view.”

Less sophisticated thieves will still walk down city streets at dead of night trying all the car door handles. “If you live in the countryside being on street probably doesn’t matter much at all but in the high-risk postcodes it does,” Trudgill says.

If you live in an area with a higher crime rate, parking on the street will be a red flag for the insurer, especially if that area also sees high rates of actual claims.

Parking definitions

"Insurers will usually give you the following options to describe where you normally park your car overnight:"

• Driveway: So long as you park your car on your driveway most nights, it should be okay to park on the road now and again.
• On-road: Insurers class parking on the road as risky, so if you’ve got a garage or driveway, it’s best to use it if you can. Although parking further away from your home is inconvenient, don’t be tempted to park closer on double yellow lines - you must follow the laws of the road for your car insurance to cover you.
• Locked garage: It sounds obvious, but if you say your car is kept in a locked garage, then it must actually be closed and locked overnight. There might even be a certain time the car must be in the garage – say, after 10pm.
• Locked compound: This generally refers to a (usually commercial) secure site, fenced all the way around with a gate accessed by a key or code. A secure commercial car park, would be an example.
• Residential car park: Car parking that’s been designated for the use of residents by the local council.
• At work: If you normally leave your car in your workplace’s car park overnight. Just make sure this is something your employer is fine with - it should say in an employee handbook document or you can ask your HR department.
• Other: Like a car port, an unsecure car park or unlocked garage. A locked compound will fall under this section too, if it doesn’t have it’s own option.

Parking and quote calculations

Insurers consider many factors when calculating a quote, such as where you live and the type of vehicle you have. But bear in mind that different providers will calculate the risk of where you park differently.

Some insurers even regard garages themselves as a risk factor. Today’s smaller garages and larger cars mean increased risk of claims for bumps and scrapes in parking. In areas where burglaries are rife, the car may be considered more vulnerable if it’s hidden in a garage which has access from the house.

Honesty is the best policy

Don’t invent a garage or a driveway if you don’t have one – if you lie about where you park your car at night, it’s insurance fraud.

Be truthful, and ready to tell your provider if the car is not guaranteed to be parked in the same way every night.

Once the policy is running, tell them if you change where you park. It might not affect your premium, but it could affect a claim.

Does street lighting where you park impact your car insurance?

Street lighting where you park won’t get you a discount, but it can put thieves off from trying to steal your car so you won’t need to claim on your cover.

What if I park in a different location every night?

If you park in a different part of the same street every night, that shouldn’t be a problem. But if parking in a completely different area is a regular thing, you might need to chat to your insurer.

Does my black box show where I park?

Telematics boxes generally have location trackers on them, so insurers could verify you’re parking where you claim to be.

Will giving wrong information invalidate my insurance?

Yes, it could do. This is because, for example, if you declare that you park in your garage but you actually park in the street more often, then this changes the level of risk that your policy needs to cover and your insurer has the right to cancel it.