Car Theft, Your Personal Belongings, And Your Car Insurance Policy

Auto theft continues to be a major problem in every province and territory. According to the Insurance Bureau of Canada (IBC), costs have spiraled to $1 billion per year for Canadians. To place this problem into context, an average of 420 vehicles are taken illegally each day. Regardless of the precautions you take - for example, installing an alarm system, parking in a well-lit section of the street, etc. - your car can be stolen. If (or when) it happens, will your personal items be covered?

Below, we'll demonstrate the importance of property insurance in the event your vehicle is stolen or the target of burglary. You'll learn how to seek compensation for your car as well as any items you left in it that are now gone.

Why Property Insurance Coverage Is Valuable

A lot of people leave belongings in their cars without recognizing the high risk of theft. They might do so while shopping, visiting friends, or even overnight. For example, students often leave their laptops, cameras, and iPods sitting in their cars, in plain view of passersby. Women may set their purses on the floorboard, thinking no one will notice. Executives might leave their golf clubs, suitcases, and laptops in the backseat.

Many consumers think these items will be covered by their auto insurance if their vehicles are stolen or burglarized. In reality, most insurers will refuse to cover them (though they'll cover damage and theft of the vehicles). This is important to realize since personal belongings are rarely recovered, even when stolen vehicles are found.

When you have property insurance, the items you leave inside your car are covered. If someone breaks into it, and steals your laptop or GPS unit, you'll be able to file a claim for compensation. The same is true in the event someone steals your car with these items inside.

Keep in mind, your home insurance policy will have a deductible. You'll need to contribute the amount of the deductible toward your losses before your insurer will cover the rest. There may also be exclusions on your policy that dictate the type of items that are covered. Without home insurance, however, you'll need to replace your stolen belongings on your own. This is the reason coverage is valuable.

Filing Two Claims When Your Vehicle Is Stolen

Suppose you have both types of insurance: property and auto. Further suppose your car is stolen along with several items you left inside. How do you seek compensation?

As noted earlier, your auto insurer will not cover your personal belongings. Your property insurer will not cover your vehicle. Hence, you'll need to file a claim with each company. The claim you file with your home insurer will address any item stolen with your car that was not an accessory of the car. Your auto claim will address costs related to repairing damage to your vehicle as well as replacing the vehicle, if necessary.

Assuming you have your home and auto insurance with different insurers, you'll need to pay the deductible on each policy. For this reason, make sure the value of the personal items stolen are high enough to warrant filing a claim.

Benefits Of Combining Coverages With A Single Insurer

A lot of consumers keep their property and car insurance coverages with different companies without having a specific reason for doing so. They may have purchased the policies in the past, and never revisited whether keeping them separate still makes fiscal sense. Combining them may save money.

Many insurers will offer policyholders a discount if they consolidate both types of insurance under a single company. Some will also waive one of your deductibles - usually, the lower one - when you file a double claim. The only way to determine whether this poses any type of savings is to shop around, and compare quotes from several insurance companies.

The most important thing to realize is that your car insurance will not cover personal belongings left in your vehicle. This is one of the reasons most people should have a home insurance policy regardless of whether they own a home.