Will my car insurance cover my work ute?

September 1, 2018
The imar Difference

Many tradies use their ute for both personal and commercial purposes, but is your car insurance enough to cover you should the worst happen?

Many tradies use their ute for both personal and commercial purposes, but is your car insurance enough to cover you should the worst happen?

Rosemary Callaghan, Team Leader at imar, said that while many tradies will have adequate insurance for their ute, there is one area in particular that needs to be paid special attention.

“The times tradies might come into trouble is [with] their trailers or expensive attachments,” Rosemary said. “Tools or equipment have to be bolted to the vehicle to be under the vehicle policy. If not, a tools and equipment insurance policy is also necessary.”

The latest statistics from the National Motor Vehicle Theft Reduction Council (NMVTRC) show that, as at July 2018, thefts in New South Wales have risen by 0.8% while Queensland have seen vehicle thefts rise by 6.4%.

The NMVTRC doesn’t keep statistics on thefts from within a vehicle but we have seen the number of claims rise when it comes to tools and equipment over the last year.

“There have been so many thefts recently that claims have really increased,” Rosemary said. “We are seeing more employees seek tools only cover to protect themselves should theft occur.”

To stay safe, imar recommends simple methods of protection alongside an adequate tools policy.

“We want our tradies to take care of their tools and equipment and not be sloppy about it. For there to be a claim, it has to be forcible entry to a vehicle, trailer or building.

“The main piece of advice is that tools have got to be locked up. Tradies can’t leave tools on a job site in a site box, they have to be in a locked building, or shipping container or home or garage or a locked vehicle.”

If tools and equipment are to be stored in a vehicle, it is best to find off-street parking or equip a vehicle with an alarm.

“Otherwise, it is just an invitation to be stolen.”

When arranging tool insurance it is important to make sure that the sum insured outlined in your policy matches the replacement value of your tools. A sum insured is the total an insurer will pay out if your tools are damaged or stolen.

If the worst should happen, keeping receipts and having documentation of ownership is important to help speed claims along.

“Some tradies may have had tools for years and years and they don’t have any receipts, we always say if you haven’t got a receipt go and snap some photos of the tools, so you have got proof of ownership.”

Find out more

Discover the ease of dealing with imar for all your tradies insurance needs. Call us today on 1800 284 627, or pop your details into the form on our ‘Get a quote’ page.

This is a general overview of insurance issues. To the extent that any material in this document may be considered advice, it does not take into account your objectives, needs or financial situation. You should consider whether the advice is appropriate for you and review any relevant Product Disclosure Statement and policy wording before taking out an insurance policy.

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