It is unfortunate but all too common that people realize what is and is not covered on their auto insurance policy after a loss has occurred. Over the years I have had hundreds of my clients call me frantically just after their car was broke into. They assume whatever is in the car would be covered on the auto policy.
Let’s first test your auto insurance IQ by seeing if you know what is covered on your auto policy if stolen from your car. Here is a list of five items that are commonly stolen from vehicles, see if you can pick out which ones are covered on your auto policy.
- Cell Phone
- Car Stereo
If you thought all of these items were covered on your auto policy that is not the case. If you picked the car stereo you are partially correct. Why just partially; well most car insurance will cover the original stereo that came with the car but will require additional coverage if you install an after market stereo. Basically anything that does not come installed on the car will most likely not be covered on the standard auto policy.
Your insurance company rates your auto insurance based on the vehicle alone and nothing that is in it or added to it including fancy wheels. In order to make sure your iPod and other property is covered you will need to have a renter’s or homeowner’s policy in place. A homeowner’s policy will cover your personal property worldwide including the back seat of your car. In the event your car is stolen and you had other items in the car you would actually need to file two claims. One claim would handle the theft of the vehicle covered on the auto policy and the other would cover the personal property that was taken from the car covered by the renter’s insurance.
Don’t make a bad day worse by not understanding your auto insurance policy. Talk with an insurance agent to fully understand what is covered on your policy.