Car robbed on holiday? Here’s what your insurance doesn’t cover

Herald Travel compared four travel insurance policies to see what they covered if a vehicle is broke into during a trip. Photo / 123rf
THREE KEY FACTS
We had been in the US for two hours when my rental car was broken into. We had been in the cafe, 200m down the street, for an hour.
It was 1pm but that didn’t seem to bother the people who smashed the SUV’s tinted windows and stole camera gear and handbags along with my wallet and passport.
The silver lining was our uber-everything comprehensive travel insurance covered many of the costs. If the break-in had happened during dinner, however, we wouldn’t have got a cent.
“Belongings in a locked vehicle at night” is an exclusion you’ll find in many New Zealand travel insurance policies.
It’s arguably fair but something I wouldn’t have considered if I flew into a city at night and needed to stop by a restaurant or supermarket en route to a hotel.
The theft happened years ago but a recent case I investigated got me thinking: what other exclusions would surprise Kiwi travellers who leave items in a locked vehicle?
Herald Travel spoke to four major travel insurers and combed through their international comprehensive policies for the answer.
Before digging into the specifics, it’s worth noting none of the insurers covered watches and jewellery left unattended in a vehicle. Three of the policies have additional rules for camera gear and electronics.
Policies often referred to a “lockable/concealed storage compartment” and items being “out of sight”. Some policies included definitions for these phrases but others didn’t, so we asked insurers to provide definitions.
Southern Cross won’t cover personal belongings if they are left unattended in an “unlocked vehicle” (very reasonable) and “locked vehicles at night”. If you park somewhere at night, you must take belongings from the car or have someone wait in the vehicle.
“During the day, if you need to leave your car, and your stuff, make sure that everything is locked away out of sight,” Southern Cross Travel Insurance’s chief customer officer Jess Strange told Herald Travel.
What exactly does “locked away” or “out of sight” mean? We’re glad you asked because we did too. Locked away means the car must be locked, which typically means the boot is also locked.
“Out of sight” depends on the options you have in your car, a spokesperson said.
“Not all vehicles have concealed boots, and not all items would fit in a glovebox or compartment, so we do need to assess whether the customer has attempted to place the item out of sight,” they explained. If a car didn’t have a concealed boot, under the seat of a locked car could be sufficient, they added.
It’s also especially important for camera equipment or electronic devices, which the policy explicitly states must be hidden in a boot or compartment during the day. Watches and jewellery are never covered when left unattended in a car.
If items are stolen, you must immediately report it to the relevant authority, such as local police or hotel security and get a written report or else your claim won’t be approved.
Travellers who opt for Tower’s International Comprehensive Travel Insurance must follow similar rules.
Tower’s policy states: “We will not pay for loss or damage to… Personal baggage left in a motor vehicle unless stored in a locked luggage compartment of the motor vehicle and forced entry is gained.”
If the car doesn’t have lockable compartments, like a storage box in the boot or locked glove box, “items must be unable to be seen from outside the locked vehicle”.
Tower’s head of product, David Meaclem told the Herald “unable to be seen” meant concealing belongings or covering them with something.
Like Southern Cross, Tower essentially asks travellers to keep items in the most secure space available.
“If your vehicle has a lockable compartment or boot with a boot cover, use these to store your items,” Meaclem said. “Otherwise take reasonable care to cover the items in some way and always lock the vehicle”.
Tower defines personal baggage as: “your suitcases, trunks and similar containers including their contents and articles worn or carried by you”. This includes electronics and devices but not cash, hired items and other specific items detailed in the policy.
Like Southern Cross, jewellery is never covered when stolen from a vehicle.
Like Tower and Southern Cross, Allianz’s policy only covers luggage and personal belongings left in a locked vehicle during the day.
However, travellers can’t just cover their belongings with a jacket or push them under a seat; items must be placed in a “concealed storage compartment”, the policy states. This is defined as “a boot, trunk, glove box, enclosed centre console, or concealed cargo area of a motor vehicle”.
Allianz Partners’ managing director for New Zealand, Kevi Blyth said luggage was an “attractive prospect for an opportunistic thief”, so travellers are asked to conceal their belongings.
“All claims are assessed on the individual circumstances, on a case-by-case basis, as there are always many variables,” he added.
‘Valuables’ left in a vehicle are never covered and this category includes phones, laptops, cameras, camera gear and tablets plus watches and jewellery.
Snow sports equipment left in a car or on ski racks must be in a concealed storage compartment, or “securely locked to the luggage/ski racks fitted to the roof of a locked vehicle” and there must be proof of forced entry.
Cover-More is possibly the most detailed policy regarding items left in a vehicle.
Items are not covered if left in a vehicle between the hours of 10pm to 6am. During the day, items are only covered if stored in a “concealed storage compartment” and forced entry is gained.
Like Allianz, “a concealed storage compartment” is defined as “a boot, glove box, enclosed centre console, or concealed cargo area”.
The Herald has contacted Cover-More and asked what travellers should do if their rental vehicle does not have a boot cover and they cannot fit belongings in other concealed storage compartments.
Cover-More does not cover valuables left in a vehicle and, like Allianz, this category includes mobile phones, photography gear, laptops, tablets and electrical equipment of any kind.