Car Insurance Gap Leaves Motorists Vulnerable to Theft Losses

Motorists Face Financial Risk from Car Insurance Policy Gaps

A new investigation by consumer champion Which? has issued a stark warning to motorists: they could face significant financial losses if valuable possessions are stolen from their vehicles. The analysis highlights a critical gap in car insurance policies, where coverage for personal belongings is often unclear or insufficient, despite theft being a common claim.

Policy Analysis Reveals Widespread Exclusions

In November 2025, Which? reviewed 66 car insurance policies and discovered that while most included some level of personal belongings cover, the protection was frequently limited. Of the 55 policies offering such coverage, all covered items like handbags, shopping, and pushchairs. However, many excluded other high-value items frequently targeted by thieves.

Key findings from the analysis include:

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• None of the 55 policies provided coverage for cash.
• 15% of policies did not cover tablets, with the same proportion excluding laptops.
• 16% of policies failed to include mobile phones in their coverage.
• The vast majority did not cover credit cards (93%) or important documents (98%).

In contrast, 95% of these policies did include sports equipment such as golf clubs, indicating a selective approach to what is deemed insurable.

Low Payout Limits Compound the Problem

Which? further cautioned that even when belongings are covered, modest payout limits can leave customers out of pocket. The most common claim limit among the policies reviewed was £300 or less, with some paying under £100. This is often inadequate to replace stolen valuables like electronics, which can cost significantly more.

A handful of insurers, including Axa, Moja, Saga, and Swiftcover, were noted for offering more than £1,000 in personal belongings cover, but these exceptions are rare.

Alternative Coverage Options Available

The investigation pointed to home insurance as a potential solution. When Which? reviewed 78 contents policies in July 2025, virtually all (97%) offered cover for personal possessions stolen from a car, typically as an optional add-on. This coverage is often broader, with limits in the thousands of pounds rather than hundreds, and includes gadgets, cash, and other items commonly excluded from car policies.

Reena Sewraz, a Which? Money expert, advised: "In the event of vehicle theft, many motorists may assume their car insurance will cover any losses – but for items left inside, that's not always true. Our analysis found common high-value items are often excluded, and payout limits can be so low that drivers still face a significant shortfall."

Practical Tips for Protecting Belongings

Which? provided several recommendations for motorists to safeguard their possessions:

1. Check policy terms carefully: Do not assume cover is provided, as insurers may exclude belongings from cheaper policies.
2. Understand cover limitations: "Personal belongings" may only cover specific items at a fraction of their value.
3. Explore other forms of cover: Consider adding personal possessions cover to home insurance, or look into gadget or mobile phone insurance.
4. Take reasonable safety steps: Insurers may challenge claims if belongings are left in view, not secured in the boot or glove compartment, or if the car is left unlocked.

This investigation underscores the importance of thorough policy review to avoid unexpected financial gaps, especially as one in ten car insurance claims involves burglary or theft.