Storage & Layup Insurance Glossary of Terms

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Understanding seasonal coverage without the stress

We get it!. Insurance terms can feel overwhelming, especially when your vehicle is off the road and stored for the season. That’s why we created this plain-language glossary of common storage and layup insurance terms, with clear definitions and real-world examples. Our goal is to help you feel confident, not confused.

Whether you're storing an RV, boat, classic car, or motorcycle, this guide will help you understand your options and make smarter coverage decisions so your vehicle is protected, even when it’s not moving.

Coverage and terms may vary. Always review your individual policy or speak with a licensed insurance agent.

Layup Insurance

Definition: A special type of insurance that provides limited coverage for vehicles (like boats, RVs, or classic cars) that are stored and not being used for a period of time.
In Plain English: A cheaper insurance plan you use when your vehicle is off the road and just sitting in storage.

Storage Insurance

Definition: Coverage that protects your stored vehicle against non-driving risks such as fire, theft, or vandalism while it’s not being driven.
In Plain English: Insurance that covers your vehicle when it’s parked for the season, not being driven.

Comprehensive Coverage

Definition: Insurance that protects against damages not caused by a collision, like theft, fire, natural disasters, or animals.
In Plain English: Covers things like storms, break-ins, or rodent damage, not crashes.

Collision Coverage

Definition: Insurance that pays for damage to your vehicle if you hit another car or object.
In Plain English: Pays for repairs if you crash into something, usually turned off in layup mode.

Policy Suspension

Definition: Temporarily pausing parts of your insurance (like liability and collision) while keeping basic protections active.
In Plain English: Turning off parts of your insurance while your vehicle is parked to save money.

Agreed Value

Definition: A value you and the insurance company agree on for the vehicle’s worth before a loss occurs.
In Plain English: A pre-set dollar amount you’ll be paid if your vehicle is totaled.

Actual Cash Value (ACV)

Definition: The amount your vehicle is worth today, after subtracting depreciation.
In Plain English: What your car or boat would sell for right now, not what you paid for it.

Deductible

Definition: The amount you pay out of pocket before your insurance covers the rest of a claim.
In Plain English: Your share of the cost before your insurance kicks in.

Exclusions

Definition: Situations or damage types that your insurance policy does not cover.
In Plain English: What your policy won’t pay for, make sure you read the fine print.

Endorsement

Definition: A written add-on to your insurance policy that changes or adds specific coverage.
In Plain English: A tweak or upgrade to your policy, like adding rodent damage protection.

Rodent Damage

Definition: Damage caused by rats, mice, or other pests chewing wires or upholstery—common in stored vehicles.
In Plain English: When mice chew your wires or seats while your vehicle is in storage.

Vandalism

Definition: Intentional damage caused by someone else, like broken windows or spray paint.
In Plain English: Someone messing with your stored vehicle on purpose.

Fire Protection

Definition: Coverage that pays for damage caused by accidental fires while your vehicle is stored.
In Plain English: Helps you recover if your vehicle burns while in storage.

Off-Road Coverage

Definition: Insurance for vehicles not currently registered or driven on public roads.
In Plain English: Covers your RV, classic car, or boat while it’s parked, not moving.

Seasonal Use Vehicle

Definition: A vehicle only used during part of the year, like summer or vacation months.
In Plain English: Something you only drive part-time, like a boat or motorhome.

Claim

Definition: A formal request you file with your insurer after damage or loss, asking them to pay.
In Plain English: Telling your insurance company something happened and asking for money.

Claim Process

Definition: The steps you follow after damage: report the issue, submit evidence, and receive payment.
In Plain English: What you do after something bad happens to get your claim paid.

Theft Coverage

Definition: Insurance that pays for your vehicle or belongings if they’re stolen.
In Plain English: Pays you back if your stored vehicle or stuff inside gets stolen.

Liability Coverage

Definition: Insurance that pays if you’re legally responsible for injury or damage to someone else.
In Plain English: Covers you if you hurt someone or damage property—but not always included in layup policies.

Ready to Protect Your Parked Vehicle?

Compare layup and storage insurance options so you can keep your vehicle safe—without paying for coverage you don’t need.

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