Will your Car Insurance cover your personal belongings in the car

Will your Car Insurance cover your personal belongings in the car?

So, you’ve left some valuables in your car and when you return you find it missing. Will your comprehensive car insurance policy cover for the stolen items in the car? Well, a lot of people have this false notion that having a comprehensive car insurance policy covers everything including personal belongings in a car. That is not the case. 

A Comprehensive Car Insurance only covers for the damage or theft of the car not for the personal belongings inside it. In the event your car is stolen and is untraceable, then the insurer will provide you the IDV agreed upon at the time of purchase. However, if someone breaks into your car and steals the valuables inside it, then the policy would cover only for the damages to your car and it does not cover the valuables stolen in it.

What needs to be done if valuables are stolen?

Having a Personal Belongings add-on would cover If someone breaks into your car and steals your valuable things. With this cover, the insurer will reimburse the market value of the personal items that have been stolen or burnt in fire or explosion. This provision is available as an add-on which means you have to buy it with an additional premium. The range of coverage varies from insurer to insurer and subject to the policy’s terms and conditions. Hence, it is important that you read the policy documents completely before  opting for a purchase.

Exclusions in a Personal Belongings Cover

It is important to know the exclusions in a personal belonging cover before you decide to buy it. Generally, the insurance companies do not provide coverage for the following cases,

  • Incidents due to negligence like leaving the car doors open
  • If you fail to report to police within 24 hours  of the incident
  • Borrowed Car
  • Personal items left overnight
  • Personal items not belonging to the insured
  • Personal items of the third party
  • Theft of important documents related to trade or business

Claim Procedure for Personal Belongings

Kindly note that the amount you will receive during claim settlement will take into account the depreciation cost of the damaged/stolen item. For example, if you lose a laptop inside the car, the insurer has a slab based on the year of the gadget and would provide you compensation only based on the depreciation. The slab varies from insurer to insurer,

  • Contact the insurer immediately after the incident
  • Follow the instruction by the insurer such as filing an FIR in the nearest police station
  • Comply with the team’s demands such as documentation
  • Share the required details for verification
  • Receive the claim amount as per the terms and conditions
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