If your car is broken into or damaged, it can be natural to assume the items inside – your laptop, tools or kids’ gear – are covered too. But that’s not always the case. Whether your personal belongings are insured will depend on the type of car insurance you have, the items themselves, and how your policy defines “car contents”.
Understanding the connection between contents and car insurance can matter more than drivers may realise. Around 220,000 Australian households had personal items stolen from their cars in 2022-23, according to the Australian Bureau of Statistics, with money, purses, wallets, jewellery, keys and clothing stolen most often.1
To help you understand how car and contents insurance typically works in Australia, we’ll explain what usually counts as car contents – and what doesn’t; and how different policies treat personal items if they’re stolen or damaged, say in a bushfire or flood. We’ll also share some tips that may help deter thieves from targeting your belongings in the first place.
What do insurers mean by ‘car contents’?
“In the insurance world, ‘car contents’ generally refers to personal belongings or portable equipment that’s inside your vehicle at the time of a covered event such as an accident, flood or forced-entry theft. This might include phones, handbags, sunglasses or sports gear,” explains Marni Jackson, Youi’s Head of Product – Vehicle and Lifestyle.
“On the other hand, items that are permanently fitted to your car – your upgraded audio system, for instance – are usually treated as accessories or modifications. At Youi, these can be covered under your car insurance policy as long as you tell us about them.”
Are your contents covered by car insurance?
Generally speaking, car insurance is designed to cover your vehicle, not the personal belongings inside it. However, some car insurance policies do offer limited cover for car contents, usually capped at a specific amount, so choosing the right policy is key if you want to safeguard some of your most important personal belongings.
“Car contents insurance typically covers items inside your car that are lost or damaged due to theft, a collision or another insured event,” says Jackson. “At Youi, we’ll cover you for contents inside your car if you have a Comprehensive or Third Party Fire & Theft policy with us.
“However, it’s important to note that limits and exclusions do apply when it comes to claiming for contents inside your car, so if you’re regularly ferrying around expensive tools or high-value items for work, you might wish to explore some other cover options.” We’ll go into those later on.
What’s not covered by car insurance?
It can come as an unwelcome surprise to car owners who regularly use their vehicle to cart around high-ticket items, such as work laptops, trade tools or professional photography equipment, to learn that their car insurance typically doesn’t cover business items.2
“At Youi, for these types of items to be covered under your car insurance policy, you’ll need to add the Optional Cover for Business items,” explains Jackson. “It’s also worth noting that cash or items which can be exchanged for cash – such as vouchers, money orders, tickets, smartcards or phone cards aren’t typically covered as contents.”
How does Youi cover the contents inside your car?
As we’ve highlighted, there are generally limits as to what you can claim when it comes to lost or damaged contents inside your car, as well as some caps on the value of each item. The same applies at Youi.2
“If items inside your car are lost or damaged due to theft, or another insured event, and you have a Comprehensive or Third Party Fire & Theft policy with us, we’ll cover you up to $150 per item and up to a total of $750 per claim,” says Jackson.
“If you’ve added our Optional Cover for Business items to your policy, then Youi will cover damage to or loss of business items up to $400 per item and up to a total of $2,000 per claim, provided they were stored securely in your car,” Jackson says.2
Are items covered if your car is unlocked?
Common sense applies when it comes to contents and car insurance. Failing to lock your car or secure your keys could put you at risk of voiding your policy, as you won’t be meeting your basic responsibilities to your insurer to take reasonable precautions against damage or loss.3
“At Youi, if you leave your car unlocked, the windows down or the keys still in the ignition, your car insurance policy is unlikely to cover any personal items that are stolen from inside your car,” says Jackson. “And if you’ve taken out Optional Business Items cover, you won’t be covered for theft of business items from your car unless those items were stored in a locked boot or a lockable compartment permanently secured to the car, and there are visible signs of forced entry.”
Are my keys covered by car insurance?
Losing your car keys, especially right before a school run or important office meeting, is the worst. Unfortunately, while car insurance might cover you if your keys are stolen, it probably won’t if you’ve merely lost or misplaced them.2
“While some broader policies, such as Comprehensive or Third Party Fire & Theft, usually cover stolen keys,2 lost keys are generally not covered,” says Jackson.
“However, if you have Youi Roadside Assist – included with our Comprehensive cover – you may be able to get help to have a spare key delivered.”4
Coverage varies between insurers and policies, so it’s important to regularly review your policy details to make sure you’re getting the coverage you need for your most important personal items.
Are baby seats and child restraints covered by car insurance?
Baby seats are legal essentials for keeping little passengers safe and secure, but how are they covered by contents and car insurance?
“While baby seats aren’t treated as general car contents under your car insurance, they are automatically covered at Youi by our Extra Cover – Additions to Car, providing you have a Comprehensive or Third Party Fire & Theft car insurance policy with us,” explains Jackson.
“This means your baby seat might be replaced as part of your claim if loss or damage to it has occurred due to an insured event, such as accidental damage, theft or flood.”
What car contents insurance covers – and what it doesn’t
The below table is a simplified summary of how contents are covered by car insurance at Youi.*
| Typically Covered | Item or event | Conditions |
| Stolen personal items | If your locked car was broken into, to the value specified under your policy | |
| Accidental damage** | Personal items damaged during a collision or insured event** | |
| Baby capsules/Child seats | Automatically included by our Extra Cover – Additions to Car | |
| Car accessories and modifications | Modified or fitted items such as roof racks, dash cams, or special wheels – must be disclosed to your insurer | |
| Typically Not Covered | Business items | These must be covered separately under Optional Cover: Business Items |
Cash, vouchers, money orders or tickets Smartcards or phone cards | Difficult for insurers to track, value and prove ownership of after a loss | |
| Valuable personal items above policy limits (e.g. jewellery or expensive tech) | These can be covered under a separate home and contents policy, not car insurance | |
| Unsecured items stolen while vehicle was unlocked, keys left in ignition or windows were down | Your cover may be voided for failing to properly secure your car and belongings |
*Offered with Comprehensive, Third Party Fire & Theft policies
**Only offered with Comprehensive policies
Are items inside my campervan or motorhome covered?
If your insured vehicle is a campervan or motorhome, and you’ve got Youi Comprehensive or Third Party Fire and Theft cover, you can choose to add optional cover for the contents inside your campervan or motorhome. This means if your belongings are damaged or lost due to an insured event – such as a fire or theft – we can help cover the cost for up to $1,000 per item, with a total per claim of the amount noted on your policy.2
“Do bear in mind though that mobile phones, jewellery, cash and negotiables like phone cards, aren’t covered by this option and that any business items will need their own optional cover,” says Jackson.
If you’re towing a caravan or trailer, on the other hand, Youi’s caravan, camper and trailer insurance may provide you with limited cover for portable personal belongings, such as clothing or camping gear, if they’re lost, stolen or damaged in an insured incident.5
Do I have to pay the full excess for damaged or stolen car contents?
In most cases, if your car contents have been damaged or stolen due to an insured event, you’ll still be required to pay the agreed excess in your policy schedule.
“In certain circumstances, however, say if you have Comprehensive cover and your car’s contents were damaged in a proven no-fault accident and you’re able to provide the details of the other driver, then your excess might be waived,” explains Jackson. “But more often than not, in the event of theft, flood or fire, an excess will generally apply.”
Should I insure personal items through home insurance instead?
Do you often transport high-value items – such as your personal tech, kids’ musical instruments or work tools – in your car between your home, workplace, kids’ school or beyond? It might be worth considering adding cover for those important belongings that would be costly to replace as an optional extra to your Home and contents insurance or Small Business policy.
If you have Home contents insurance with Youi, you can request to add Optional Cover: Contents Accidental Loss or Damage to cover all your contents and jewellery items – or specified portable valuables – both at and away from your residence.5 You can also add Optional Cover: Business Items to cover your business items for accidental loss or damage up to $5,000 after excess.
“It’s worth remembering that for this cover to apply to business items stolen from your car, the items must have been in a locked boot or compartment attached to the vehicle with visible signs of forced entry,” says Jackson.6
Or perhaps you run a small business that relies on transport, such as trades, gardening or cleaning? It might make more sense to cover your essential business tools or tech through your business insurance.
Youi’s Small Business Insurance – Optional Business Items cover, for example, can cover you for loss or damage to your portable business items anywhere in the world up to $2,500 per item, and up to the total Business Items amount listed on your policy per claim, helping keep your trade running smoothly.7 To cover any work essentials with a replacement value exceeding $2,500, you could also consider adding specified High Value Business items to your policy.8
“All of these options can help provide broader cover for those valuable items you regularly carry outside the home,” explains Jackson. “Think of it as a way to complement your existing car insurance.”
Safety tips to help keep your car contents safe
To help avoid car break-ins and theft, Crime Stoppers offers this practical advice:9
- Take your valuables, such as your phone, laptop, sunglasses, sports gear, handbag or wallet, with you when you leave the car.
- Don’t leave any loose change or cash lying around your car.
- Don’t stash items in the glove box or centre console as these are prime targets for thieves.
- Keep items you can’t take with you locked in the boot.
- Close your windows and lock your car doors when you leave.
- Install an alarm or immobiliser and activate it when you’re leaving your car.
- Don’t hide a spare set of keys anywhere in your vehicle.
- Park your car off-road and in a locked garage if available.
- Park in well-lit areas at night and always try to park in secure car parking stations.9
If you’re looking to insure a new car or reviewing your current policy to make sure it includes enough cover for your most important contents, consider starting a quote online with Youi or giving us a call on 13 9684.
1 Source: Australian Bureau of Statistics – Majority of car thefts happen at home, March 2024
2 Exclusions, limits and additional fees may apply. For full details, see the Car PDS.
3 Source: Finder – Car Insurance Exclusions, August 2024
4 Limits, exclusions and conditions apply. For full details see the Roadside Assist T&C.
5 Exclusions, limits and additional fees may apply. For full details, see the Caravan and Trailer PDS.
6 Exclusions, limits and additional fees may apply. For full details, see the Home Insurance PDS.
7 Exclusions, limits and additional fees may apply. For full details, see the Business PDS.
8 Conditions, exclusions, limits and additional fees apply. For full details, see the Business PDS.
9 Source: Crime Stoppers – Protecting your vehicle
