If you own a car and a home, then you’ll need to insure these two very valuable, potentially irreplaceable assets against a whole raft of different disasters and dilemmas.
One of the slightly confusing aspects of this arrangement is that your homeowners policy may include cover that applies to aspects of your automobile. To understand what this means, and what policies you’ll need, read on.
The importance of having car insurance
Every driver has to be insured, and that means getting a policy that’s specific to you and your vehicle. You can get a great deal on a separate auto insurance policy from comparison sites like cheapinsurance.com, and no matter which package or provider you pick, there’s no getting around the legal obligation you have to purchase protection of this type.
The idea behind auto insurance is that it will cover the costs of any accident you get into on the road, shielding yourself from the liability you’ll face if a collision involves another driver, for example.
The role of homeowners insurance
Insurance that covers the contents of your home as well as the physical structure of the building itself will almost always exist as an entirely separate policy to the one that deals with your car.
However, it is possible to buy bundle packages that include home and car cover both provided by the same insurer. Even in this case, claims on one policy won’t impact the premium you pay for the other, because they’ll still be dealt with individually.
The exception comes when you have a home insurance deal which includes protection for your personal belongings when you are out and about. In this case, you might be able to make a claim if you leave a valuable item in your vehicle when it’s parked in a public place, and which is then stolen from within the car by a crook.
Home insurance could reimburse you for the value of the stolen property, while your car insurance would cover the cost of any repairs you need to make following the break-in, such as to the door locks or the windows.
The variables and considerations
Not all homeowners insurance policies are created equal, and the cover of your personal belongings might not extend to them being left in your car.
Whatever the case, it’s unwise to leave your valuables on display inside your vehicle, whether it’s parked on your driveway or in a parking lot.
Minimizing risks of theft is a must because if you do need to make a claim, your insurance premiums will increase in price the next time you come to renew. The same goes for driving safely, because dealing with the aftermath of a crash is both costly from an insurance perspective, and also problematic for many other reasons.
In short, it’s not worth taking any chances, and you should certainly invest in policies for home insurance and car insurance to get comprehensive cover in all areas of your life.