Is My Personal Property Covered by Car Insurance for Theft or Damage?

Unfortunately most people do not really know if their car insurance covers personal property until they need to know. If an item such as a laptop or camera is stolen or damaged in a car accident some people just assume the car insurance will cover the loss. This can lead to disappointment and upset when the car insurance denies the claim.

Read Your Car Insurance Policy

Have you read your car insurance policy? Have you discussed what is covered and what is not with your agent? If you answered no to these questions, you are not alone. Car insurance and what exactly it covers can be very confusing. I once hit a deer and damaged the front of my van. Upon calling the insurance company, I discovered I only had liability, which means the damage to my car wasn't covered. That taught me to read and understand my auto insurance policy.

Insurance policies are written differently by different companies. If you only have liability insurance, you probably do not have a clause to cover personal property. Even if you have full coverage insurance, it will only cover things that are permanently attached to the car like an upgraded stereo system. Most of the time car insurance will not cover anything that can easily be removed from the vehicle.

You can discuss your options with your car insurance agent and place a clause on the policy to cover personal property, but it will increase your premium. This may be beneficial if you travel a lot or carry a work computer or equipment with you.

Check Your Homeowners Policy

Most people wouldn't even consider turning a claim into their homeowner's insurance policy if something was stolen from their car. Some homeowners or renters insurance policies do actually cover personal property even if it is not in the home at the time of loss. Again, you need to know exactly what your homeowner's policy states about personal property coverage.

Your agent may advise that you place a rider on your insurance policy, especially if you have specific items such as any expensive equipment that you may use in the home and that may travel with you for work related projects. I used to do wedding photography and I had my camera equipment listed on my homeowner's policy. They were also aware that the equipment traveled with me.

The point is, there is no simple answer as to if your personal property is covered while it is in your car. The only sure way you will know is to read your auto insurance policy thoroughly. If you do not understand the phrasing in the policy, contact your insurance agent. He or she will explain it so that you are clear on what is and isn't covered.

More by this contributor:

Comp, Collision, Liability: Understanding Insurance Terms

Riding in Cars: Are Your Pet's Injuries Covered in an Accident

How to Lower Rates on High Risk Insurance

Sources:

Cars Direct.com

Insurance Providers.com