Insurance for cars parked at home: Does it cover theft or fire?

Car insurance is essential; you cannot afford to forgo financial protection against damage from accidents, collisions, theft, fire, flood, and other risks. While all this makes sense for cars used for daily commutes, home chores, or long trips, what about vehicles that are mostly parked at home? Do they require insurance? If so, does the policy cover theft or fire?

Many Filipino car owners assume that if parked securely, their vehicle is protected, with minimal need for insurance coverage - but your provider thinks insurance works differently. Don’t worry, if your car or that of your parents rests in the garage for most of the day, this guide is a must-read. Here you’ll learn how home insurance for parked cars works, what is covered & what isn’t, and how you can ensure optimal protection.

So, without further ado, let’s begin learning about insurance for a parked car…

Car insurance coverage - Basics you should know

What does standard insurance usually cover? In the Philippines, insurance policies vary: while CTPL insurance is mandatory, most car owners opt for comprehensive coverage for its broader protection. A standard comprehensive insurance package includes coverage for theft, fire, accidental & collision damage, Acts of God, and third-party liability.

Also Read: How to claim CTPL Insurance? Here’s what you need to know

However, each insurance policy has its own set of inclusions, exclusions, and limits that affect the claim application conversion, even for the cars parked at home.

Also Read: Roadside assistance coverage: Meaning, benefits, services & more

Key insurance terminology

Here is a list of key terms every Filipino car owner should be familiar with -

• Comprehensive insurance: This optional insurance package covers theft, fire, and accidental damage
• Deductible: It is the amount paid by the policyholder from their pocket, before insurance settlement comes in
• Depreciation: It refers to the reduction in value every car faces over time, which impacts insurance costs
• Exclusions: It refers to the damages that the insurer doesn’t cover

Also Read: Car insurance participation fee: All you need to know

You must understand their terms and the basics of insurance, as this helps you understand how theft and fire claims work for home-based incidents.

Also Read: Why comprehensive insurance is vital for car owners in the Philippines

Car insurance & car parked at home: Protection offered

Theft coverage

Does theft coverage apply when the car is parked at home? Yes, most car insurance companies cover theft even when the vehicle is parked at home; if it is stolen by someone authorised to use it, there is forcible entry.

Situations that are generally covered -

• The car was stolen from the driveway
• An unknown person stole the car
• Car stolen from a secured garage via forced entry

Note, some providers do not cover theft when household help or relatives are involved. Make sure to read your policy thoroughly to understand all the terms clearly.

Fire coverage

Will fire coverage apply if the car is parked inside your home? Yes, most providers cover fire damage even if the vehicle is parked inside your garage or house.

Most insurance policies cover the following types of car fire -

• Electrical fire
• Accidental fire
• Fire spreading from the home to the car

Note that the provider will deny the claim if the fire was intentionally set. The insurer may require an official investigation report if malicious activity is suspected.

Situations when a fire claim may get denied -

• The garage was intentionally left unsecured or open
• The car was used beyond its declared purpose
• Fire was caused due to undisclosed modifications
• Fire was initiated by a family member or relative

It is advisable to check your policy and check exclusions to avoid unwanted surprises.

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Types of insurance plans covering theft & fire

• Comprehensive coverage: Some providers offer comprehensive coverage that protects against both fire and theft.
• Acts of God: When a natural event causes a fire, this coverage applies.
• Add-ons: While fire and theft are typically standard coverages in comprehensive insurance, providers offer enhanced coverage for exceptional cases.

Also Read: Difference between basic car insurance and add-ons: Insights for Filipino drivers

What about Personal Accident and Third-Party Liability?

Insurance providers also offer personal accident and third-party liability insurance for better coverage. However, the issue is that they protect people, not vehicles. In short, car theft, fire damage, and garage-related incidents are not covered.

Common fire & theft scenarios & car insurance

Scenario 1: Car stolen when parked inside the garage
Protection: Your insurance provider will cover you against such damage only if evidence of forced entry or break-in is found. However, the claim may be denied if the owner left the car unsecured.

Scenario 2: Fire at home
Protection: Your policy will cover the damage, provided the fire was accidental. Furthermore, providers typically review maintenance history to assess owner awareness, and claims will not be approved if owner ignorance is identified.

Scenario 3: Car damage due to deliberate fire or break-in attempt
Protection: Insurance providers will cover an incident only if it is not an intentional act by the owner.

Filing theft or fire claim: Process & requirements

Let us start with discussing the step-by-step guide to file a theft and fire claim in the Philippines.

Step 1: Check for everyone's safety
First, check your own and others' safety, especially in the event of a fire.

Step 2: Notify the local authorities
Contact or visit the nearest police station to obtain a police report. Here, you’ll be asked to provide details such as the time & place of the incident, the last person to use the car, and the car's details.

Step 3: Inform your insurance provider
Contact your insurance provider or agent as soon as possible, ideally within 24 hours. Note: the faster you report, the quicker and smoother the claim process will be. Provide all requested information from the provider.

Step 4: Prepare required documents
Usually, you’ll be asked to provide the vehicle’s OR/CR, insurance policy, police report, photos or video, and a repair estimate. Some providers also ask for a notarised affidavit.

Step 5: Wait for investigation and approval
The insurance provider usually sends an adjuster to investigate the situation and assess the damage. Make sure to cooperate and be truthful. Most insurers release the result within 7 to 15 days, depending on the severity of the damage.

Also Read: All you need to know about taking photos after a car accident in the Philippines

Tips to strengthen your car’s protection at home

We’d advise adopting practical home security measures like -

• Install a CCTV camera
• Always lock the garage door
• Use the monitor sensor lights
• Avoid leaving the car keys carelessly
• Add a steering wheel lock
• Timely maintenance & service

Recommended add-ons

• Acts of God
• Theft protection
• Fire coverage
• Personal Accident coverage

Also Read: Is vandalism covered? What to do if someone damages your parked car

Bottom line

If your car is parked for extended periods, such as days or weeks at a time, is insurance required? The answer is YES, as unfortunate events such as car theft or fire can occur at any time and affect anyone. Here, a car owner needs to add comprehensive coverage to their insurance plan.

You see, parking the car at home often creates a false sense of security for the owner, but the fact is, risks such as fire, break-in, and theft can still occur. Therefore, it is recommended to choose the right coverage and add-ons to ensure peace of mind, knowing the vehicle is protected, whether inside or outside the home.

Also Read: Should you renew early or wait? A Filipino driver’s guide to smart car insurance timing