Updated: June 25, 2025
Advertising & Editorial Disclosure
Your vehicle's location doesn't matter. Cars are always excluded from homeowners insurance whether in your garage, driveway or on the street.
Homeowners liability insurance protects your assets, including your car, against lawsuits but doesn't cover any physical damage to the vehicle.
When a covered peril damages both your home and car, you'll need to file separate claims with your homeowners and auto insurance providers.
Homeowners insurance doesn't cover vehicles parked in your driveway, regardless of the cause of damage or loss. Your home policy only protects your dwelling and personal belongings inside the house, not any vehicles on your property.
Vehicles need their own dedicated auto insurance policy because they face different risks than homes do. Auto policies protect against vehicle-related perils like collisions, theft and weather damage that home policies exclude.
Only auto insurance protects vehicles parked in your driveway. This policy is specifically designed to safeguard against vehicle-related risks that homeowners insurance excludes. Auto insurance protects against these common risks to vehicles:
Auto insurance covers your vehicle if it's stolen from your driveway, including potential recovery or replacement costs.
If your parked car is hit by another vehicle while in your driveway, auto insurance covers the resulting damage.
When storms, floods, falling trees or other natural events damage your car while parked at home, auto insurance provides protection.
Auto insurance covers repair costs if someone damages your vehicle through keying, breaking windows or other malicious acts.
If your vehicle causes injury or property damage to others, auto insurance pays for medical expenses, repairs and potential legal costs.
State minimum auto insurance typically covers only liability, leaving your vehicle unprotected against theft, vandalism and weather damage. You need comprehensive and collision coverage (often called "full coverage") to completely protect vehicles in your driveway.
Homeowners insurance doesn't pay for vehicle damage, but its liability coverage protects your assets (including your car) from being seized in costly lawsuits. If someone gets injured on your property and sues you, your homeowners liability insurance covers legal settlements up to your policy limits.
All your assets could be at risk without adequate liability coverage if you're found liable for an incident on your property. Your car, home and even retirement savings could all be seized to pay damages.
Standard homeowners policies offer liability protection up to $500,000. Consider umbrella insurance if your total assets exceed this amount to extend your coverage beyond standard policy limits.
When a covered peril like a storm or fire damages both your home and car, you must file two separate insurance claims. Homeowners insurance excludes vehicles, while auto insurance only covers your car.
Follow these steps to navigate this dual claims process:
Take detailed photos and notes of all damage to both your home and vehicle before any cleanup or repairs begin. Document the date, time and circumstances of the incident.
File claims with both your homeowners and auto insurance companies as soon as possible. If you bundle policies with the same company, the process will be more streamlined, but you'll still need to file separate claims.
Each insurance company will guide you through their claims process, including estimates, inspections and repair options. Be prepared to work with different adjusters for your home and auto claims.
Maintain organized files of all communications, estimates and expenses related to both claims. Keep both insurance companies updated about repairs and retain receipts for any out-of-pocket expenses.
Bundling home and auto insurance is a great way to manage claims in the event of a covered peril. The best home and auto insurance bundles grant you discounts and streamlines how you manage all your policies.
Homeowners insurance never covers vehicles, even when they're parked in your driveway or garage. Your car requires a separate auto insurance policy with comprehensive and collision coverage to protect against theft, accidents, vandalism and natural disasters.
If you're concerned about vehicle protection, review your auto policy to ensure you have more than just the state-required liability coverage. Consider bundling your home and auto policies with the same insurer to simplify claims if a single event damages both assets.
Insurance coverage for vehicles and related incidents can be confusing. Here are answers to common questions about how homeowners and auto insurance policies handle various vehicle-related situations that might occur on your property.
If your neighbor's car gets damaged, homeowners insurance doesn't cover it. Your auto insurance policy handles liability for damage to another person's vehicle, even if the incident occurs on your property.
If car accidents occur involving your vehicle, homeowners insurance doesn't cover them. Auto insurance provides the appropriate coverage for vehicle accidents, whether they happen on your property or elsewhere, including liability, collision and comprehensive protection.
If personal items get stolen from your vehicle, homeowners insurance may offer limited coverage for those belongings. Homeowners insurance doesn't cover theft of the car itself or car parts, which requires comprehensive coverage under your auto insurance policy.
If a tree damages your car, homeowners insurance doesn't provide coverage. The comprehensive portion of your auto insurance policy covers this type of damage along with other non-collision incidents.
If your car damages your garage, homeowners insurance doesn't cover the repairs. The property damage liability section of your auto insurance policy covers damage your vehicle causes to structures.
MoneyGeek analyzes homeowners and auto insurance coverage details using comprehensive data from official sources. Our research on vehicle coverage in relation to homeowners insurance relies on official rate filings from state Departments of Insurance across all 50 states and pricing data from Quadrant Information Services.
For this page, we examined how standard homeowners insurance policies address vehicle-related incidents and damage on residential property. We evaluated coverage limitations and exclusions for vehicles under typical homeowners policies, along with the necessary auto insurance coverages required for complete vehicle protection.
Our analysis includes comparing bundled versus separate policies for homeowners with vehicles, calculating the average additional costs for comprehensive and collision coverage needed to protect parked vehicles, and identifying common coverage gaps that leave homeowners financially vulnerable when incidents affect both home and vehicle simultaneously.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
