If you get into an accident, you probably think first about making a claim, repairing your vehicle, or potential medical bills. But there’s something else that often gets overlooked: the fate of your personal belongings inside your vehicle. Items like your phone, laptop, or sports equipment can get damaged or destroyed in an accident. So, does your auto insurance cover these items, or will you have to pay for them yourself? Understanding what your policy covers can help you avoid unexpected expenses and make more informed decisions about your insurance needs.

Auto insurance coverage basics
Auto insurance in Canada offers a range of protection, but most policies focus on the vehicle itself and liability for damage or injuries caused to others.
 

• Liability insurance covers costs if you’re found responsible for damaging someone else’s property or causing injuries in an accident.
• Collision insurance covers repairs to your own vehicle if it’s damaged in a collision with another vehicle or object.
• Comprehensive insurance protects you against non-collision incidents such as theft, fire, vandalism, or damage from natural disasters.

While these coverages protect your vehicle and address your liability as a driver, many people are surprised by the differences between what they assume is covered and what their policy actually includes, often only discovering these gaps after something happens.

Does auto insurance cover personal belongings?
The short answer is no. Most auto insurance policies don’t cover personal belongings that are damaged or destroyed in an accident. Items such as electronics (e.g., your laptop), valuable jewellery, or sporting equipment (e.g., your golf clubs) are generally excluded from auto insurance coverage.

Why don’t auto insurance policies cover personal belongings? Auto insurance is designed to protect the vehicle, not its contents. Personal property inside your vehicle isn’t considered part of the vehicle, so it falls outside the scope of standard auto insurance coverage.

The solution: Homeowners, condo, and tenant insurance
Fortunately, personal belongings are typically covered by a different type of insurance policy. Homeowners, condo, and tenant insurance policies generally cover your personal belongings even if they’re damaged or stolen while away from home. This protection, sometimes called "off-premises coverage," serves as a safety net for your valuables wherever you go.

However, it’s important to be aware of certain limitations and conditions that can affect your claim. Some policies have lower coverage limits for personal property when it’s away from home. High-value items such as jewellery or collectibles usually require additional coverage to be fully protected. It’s best to avoid leaving valuables in your vehicle unattended whenever possible. If you frequently transport expensive or important items, ask your insurance provider about scheduled personal property coverage to ensure you have adequate protection.

If your insurance policies are bundled, you may only need to pay one deductible for both auto and property losses from the same event. Keep in mind that you’ll need to pay your deductible before receiving compensation, and the claims process for off-premises incidents can differ from home-based incidents. Understanding these nuances can help you plan your insurance strategy wisely.

Ensure you’re protected
Insurance offers peace of mind, especially when you have the right coverage for your needs. Unfortunately, many Canadians only discover gaps in their protection after an incident takes place. To avoid unwelcome surprises, make it a habit to review your insurance policies regularly and thoroughly.

It’s recommended to meet with your insurance broker annually to clearly understand what your auto insurance policy covers, and what it doesn’t. Your broker can help you spot and address potential gaps before an incident occurs, ensuring you’re prepared for the unexpected.

If you're a current OTIP policyholder, contact us at 1-833-494-0090 to review your existing auto and home insurance policies and discuss enhancing your protection with additional coverage. If you're not insured with OTIP and are shopping for auto and home insurance, call us at 1-888-892-4935 to get a quote and receive a $20 gift card of your choice!