Car Electronics

Are Car Electronics Covered by Auto Insurance?

Anthea Auto

How many times have you been sitting at an intersection waiting for the light to change when a car pulls up next to you with a stereo on so loud you can FEEL it? Look closely and you might even find “Brand Name” decals on the windows advertising the manufacturer of the powerful stereo. From an insurance perspective, these decals literally shout, “Steal Me!”.

However, not all after market electronics are purchased by younger owners. It seems very few vehicles can be found these days without a cell phone or upgraded electronics package of some description.

Are My Electronics Covered?

In the past, as long as these items were permanently attached to the car, truck or van they were considered to be part of the vehicle when calculating its value in the event of a loss. Even though they could add significantly to the value of the vehicle, no additional premium was charged.

Now, with the scope, complexity and variety of electronic add-ons available, the Ontario Automobile Policy has been amended to limit the amount payable for after market Non-Factory Installed Electronic Equipment to $1,500. Such equipment includes, but is not limited to, radios, tape players, compact disc players, speakers, telephones, two-way radios, televisions, fax machines, and navigation/positioning/ location-finding equipment, computers and items of a similar nature.

“Factory Installed Equipment” means electronic accessories and equipment that was included in the original new purchase price of the vehicle. Factory optional upgrades to sound systems are included in this definition.

If you have non-factory installed electronic equipment that is worth more than $1,500 and wish to insure it, contact us and we’ll tailor your policy to meet your needs. For an additional premium, policy endorsement OPCF #38 – Agreed Limit for Automobile Electronic Accessories and Equipment, may be added to provide the appropriate coverage.