What Auto Insurance Does Not Cover Inside Your Car

Many people are unaware that auto insurance is generally not the policy that answers for personal belongings taken from a vehicle.  Adding more auto coverage does not change that, whatever the package is called, because the auto policy is written around the vehicle rather than its contents.  While your car might be covered for damage or theft, only your auto itself is covered. Therefore, the personal property inside the vehicle are not considered part of the vehicle and are not included in its valuation when it comes to an auto insurance policy. Drivers and passengers carry many valuable items with them when on the road, from cell phones and laptop computers, to leather jackets and other valuable items. 

As auto insurance policies do not insure these items, you will need to turn to your homeowners insurance and renters insurance policies in the event of damage or theft of personal items in your car. If you must leave valuable items in your vehicle, it is advised that you do not leave them in plain sight. The chances of your vehicle being broken into are greatly increased if your valuables are visible to others. Some of the most frequently stolen items are GPS units, MP3 players, cell phones, credit cards, money and other similar items. Where the value routinely carried in a vehicle is significant, the home or renters policy is the one to review with your local insurance agent for a thorough review of your insurance policies.

Which policy actually responds?

Personal property taken from a vehicle is generally handled by a homeowners, renters, or condo policy rather than the auto policy, and it is subject to that policy’s deductible. A laptop stolen from a car is a homeowners claim, not an auto claim, which surprises most people the first time it happens.

Sublimits are where this gets expensive

Home and renters policies cap certain categories regardless of the overall contents limit. Jewelry, firearms, cameras, and business property each commonly carry a sublimit well below what people assume. Scheduling an item removes it from that cap and usually removes the deductible as well, which matters for anything carried in and out of a car regularly.

Tools and work equipment are a separate question

If the items in the vehicle are used for work, a personal policy may exclude them entirely. Contractors’ tools and equipment coverage, or an inland marine floater, is the usual answer. This is the single most common gap we see with tradespeople driving a personal truck.

Before a loss

An inventory with photographs and receipts is worth more at claim time than a memory of what was in the back seat. We walk through what a policy covers, what it caps, and what would need scheduling, and you decide what to carry. See scheduled property insurance and contractors tools and equipment insurance.

Disclaimer

This article is provided by Schneiderman Insurance Agency for general informational purposes only. It is not legal, tax, financial, claims, or coverage advice. We are licensed insurance professionals, not attorneys, accountants, or financial advisors, and nothing here should be relied on as a substitute for advice from a qualified professional in those fields. This content is general in nature and is not a review of, or a recommendation for, any individual reader’s specific insurance needs, policies, or circumstances. Insurance coverage depends entirely on the specific terms, conditions, endorsements, exclusions, limits, underwriting eligibility, carrier, and facts of each situation, and the actual policy language always controls. We do not guarantee any coverage, pricing, eligibility, underwriting approval, or claim outcome. Reading this article does not create an agent-client relationship. To understand how these issues apply to your situation, please review your own policy and speak with a licensed insurance professional, and consult legal, tax, or financial advisors where appropriate.