Are the Contents of My Car Covered?

Music in Cars

If I have Full coverage on my car, is the stuff inside my car covered on my car insurance?

I mean my radio, my wheels, DVD player and all? What about my Laptop?

The answer is Yes and No.

Insurance companies make a distinction between “Standard equipment” and “Custom equipment,” Equipment that was factory installed is considered “Part of the auto” and is covered, “Custom equipment” is a different matter. Do not assume that custom equipment is covered!

One of the common questions we get concerning “Special” and or custom equipment is whether tires and rims are covered under the physical damage portion of an insurance policy? Since no insurance company assumes that anyone will be driving a car without tires and wheels, of course they will be covered, but only that equipment that came as standard or a standard premium option from the manufacture. As stated earlier in this book, the price companies charge for insurance is based on the potential cost of a claim and the likelihood of the company having to pay that claim. When one replaces the wheels and tires on their car with a $4,000 upgrade, not only does that move increase the size of a possible loss, but also the likelihood that they will be stolen. Custom extras often CAN be covered for an additional premium.
Always check with your agent and be specific.

Also remember to keep receipts and pictures to support a future possible claim.

Contents not permanently installed in your car ARE NOT COVERED. This includes thing like CDs, clothing and yes a laptop. These items should be covered on your homeowner’s policy.

It is important to remember that there is not one policy that will cover all of your insurance needs. Different risks will require different separate insurance policies. The most common policies that individuals will need are Auto, Homeowners/Renters, Health and life insurance. Each of these products protect an individual from separate and also critical exposures.

Auto insurance has two basic parts; LIABILITY which covers the damages you do to others, and PHYSICAL DAMAGE (sometimes called Comp. and collision), which covers your own car for damage.

Homeowner’s insurance covers damage done to your home, but also will cover the contents inside, as well as provide liability coverage against people slipping or in any other way, being hurt on your property.

Homeowner policies are where miscellaneous property such as a bicycle, a guitar and your clothes are covered. Keep in mind there are definite limits spelled out in each policy.

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