Are ‘portable possessions’ that are taken on the road covered by car insurance? Here’s what clients need to know

It has been reported that up to 70% of South African motorists do not have car insurance, which is an alarming statistic in and of itself

It has been reported that up to 70% of South African motorists do not have car insurance, which is an alarming statistic in and of itself. There is, however, another dimension of risk that needs to be considered, which concerns the 30% of motorists who are insured against accidents and damage. This risk involves insured individuals who do not have a full and clear understanding of what their policies cover.

When taking out car insurance, clients may be solely focused on the obvious risk of being involved in a car accident. However, SA is also plagued by a high incidence of theft from cars, including 120 000 smash-and-grab incidents per year and the staggering rise of remote jamming. This means car owners should also consider how to protect themselves if they suffer a financial loss as the result of a theft from their car.

The value of items that can be transported (and even left in a car) can quickly add up. Examples include mobile phones, laptops, cameras, jewelry, wallets, sunglasses and items of clothing. In the event that you are the victim of a smash and grab, or if these items are stolen from a vehicle, the damage to the vehicle will be covered under a comprehensive insurance policy. However, the items will not. For these types of ‘portable’ assets, the best risk protection option to consider is all risk cover. This kind of cover is typically offered as an add-on to your homeowners and contents insurance policy.

Some homeowners and home contents policies include a basic level of all risk cover. Unspecified all risk provides broad cover for general items such as those in a handbag or a gym bag. Depending on the insurer, a maximum limit may apply to what is covered in each case. It is important that you are clear on what these thresholds are, since it may not be enough to cover the full extent of damages. Increasing the insured value under the all risk section on your household policy may be a partial solution, but high-value assets like wedding rings, laptops, cell phones, tablets and professional cameras need to be specified under the all risk section. Conditions for which items should be specified under an all risk policy will differ from insurer to insurer, so special attention should be paid to this when comparing policies.

The premiums for all risk insurance are calculated based on a number of factors that relate to each client’s unique perceived risk. Ensuring all items in the vehicle are kept out of sight in either the boot or cubby-hole (when parked or stopping at a traffic light), is one way to reduce the risk of smash-and-grab incidents. Making sure that the car is properly locked, and double-checking this by trying the doorhandle before walking away, is also a good way to prevent remote/car jamming.

Other precautions that can be taken to protect valuables include installing a safety film on your car windows to increase the strength of the glass and lessen interior visibility, and ensuring your car alarm is in good working order.

However, being vigilant is arguably the best protection. Where possible, avoid parking in badly lit or remote areas and ensure no one is following you when returning to the parked car. Observing these small but crucial habits can help to not only ensure the safety of your vehicle, but also the items inside it.