Motorists across the UK are being warned they could face significant financial losses this festive season by using their cars as hiding places for Christmas gifts. A little-known insurance stipulation means that concealing presents in a vehicle could be deemed a failure to take 'reasonable care', potentially invalidating claims or drastically reducing payouts in the event of a theft.
The 'Reasonable Care' Clause Explained
According to insurance experts, policies are contingent on policyholders taking proper precautions to secure their vehicle and its contents. Jake Lambert, a temporary car insurance specialist at Tempcover, highlighted the often-overlooked risk. "What might seem like a clever way to avoid family members sneaking a peek at their gifts can actually lead to disaster," he stated.
Lambert explained that insurers will investigate whether a vehicle was locked, if items were stored in a closed compartment, and if the owner exercised reasonable precautions following a theft. "Hiding presents anywhere that could be construed as 'on display', even if you have attempted to hide an item by covering it with a coat or blanket, could be deemed as not taking the correct steps," he cautioned.
Widespread Unawareness and Real Financial Impact
Despite the serious potential consequences, a large majority of British drivers are in the dark about this rule. Research indicates that 66% of Brits are unaware that leaving a gift hidden in their car could violate their insurance policy's 'reasonable care' clause.
The warning comes with stark financial realities. One in ten Brits (11%) have already had a gift stolen from their vehicle. The average value of these stolen Christmas presents is £200.80. For 10% of these victims, the stolen items were worth more than £500.
This sum frequently exceeds the standard personal belongings cover provided by many car insurance policies, which often starts at a much lower level of between £100 and £200. This gap can leave drivers substantially out of pocket, even if a claim is partially accepted.
Protecting Your Payout This Christmas
The expert advice is clear: never treat your car as a secure storage unit for gifts. "This doesn't necessarily mean a full loss," said Lambert, "but it could drastically reduce the amount your insurer will cover if the vehicle is stolen, and in extreme cases, invalidate the claim entirely."
To ensure your safety net remains intact, drivers are urged to:
- Avoid leaving gifts in your car, especially in visible areas like footwells or seats.
- Check their policy's personal belongings cover limit to understand what is protected.
- Remember that locking the vehicle is a basic requirement, but may not be sufficient if items are left in plain sight.
The key takeaway for the festive period is to remove valuable items from your vehicle entirely. By understanding and adhering to the 'reasonable care' rule, drivers can avoid an unwelcome financial shock and ensure their Christmas remains merry.
