Your car was just stolen. You had important personal items. Is my auto insurance going to cover my personal items?
The simple answer is that auto insurance does not typically cover personal property. This would be true for almost all insurance companies. Auto insurance is not meant to protect personal property, but damage to the vehicle.
Your company will consider many factors when determining how much premium you should pay for car insurance. However, the most important factor is the vehicle type. This includes any extra equipment or packages. The carrier can use this information to determine the approximate cost of replacing your vehicle. You could have valuable personal items such as a phone or laptop . An insurance company wouldn’t be able determine the rate they should charge you because they would know what you had in your vehicle at any given time. Imagine if an insurance company covered personal items without disclosing what they were. How much would that affect your premium? Ouch!
Consider these things when considering personal items in your car and whether you would be eligible for coverage in the event of a covered loss.
- Did the item remain permanently attached to your vehicle?
- Did you add coverage for aftermarket or non-manufacturer items to the vehicle?
Permanently attached is usually a reference to items such as an aftermarket stereo system or a radar detector that you can install into your car. It is considered permanent if it cannot be removed or moved easily from the vehicle. These claims often raise issues about things such as schoolbooks, tablets, smartphones, and laptops. These items are not covered by your policy and will not be attached to your vehicle.
If you have made any modifications to your vehicle, such as a new stereo or other electronic items, it is worth considering a CPE (or Custom Parts & Equipment endorsement). This is because if your car was insured with the factory stereo, but you later added a $2,000 custom system, but you didn’t endorse the system, your insurance company may not be liable for the cost of the new system. Why? This is because the equipment was not present in your car at the time of policy inception/start date. Your carrier didn’t take this into account when determining your premium.
You may be asking, “What would my personal property cover?” Your homeowner’s policy may be able to cover your personal items that are stolen from your vehicle. This is because your homeowners policy is designed to protect your personal property. If the items in your car are often in your home, it is possible that your homeowners insurance will cover them. However, I strongly recommend that you go through your policy and contact your company to find out how they would handle this kind of loss.
Let’s take a look at what personal items you have in your car and how insurance companies will likely handle them.
- It is strongly recommended that you not leave any valuable personal items in your car.
- Call your agent or insurance company to discuss a CPE endorsement if you plan on adding items to your vehicle. Remember that even in this instance, your insurance company or agent will likely ask for receipts to verify the equipment. Keep them all!
- A basic policy may be extended by some companies to cover personal items up to a specific limit. Call your agent to verify your policy.
- You might contact the company that insures your home and ask them how they handle claims for personal property stolen from your vehicle.
As with many things in life, it is important to be prepared and have good information so you can avoid unpleasant things such as theft of personal items. The prepared mind is more likely to be successful than the unprepared. It’s hard to remember who owned it, but it’s a great one!
Marc Berry has over 8 years experience in auto insurance, having worked at 2 of the most respected and reputable insurance companies in the country.
Marc’s site allows you to obtain free auto insurance quotes from one of the nation’s top providers.
