NoClaimsDiscount.co.uk: Car Insurance Companies Do Not Cover Petrol Theft

UK (SANEPR.com) March 24, 2009 -- Additionally, most car insurance companies also do not cover damage to cars that take place during incidences of petrol theft.

Although petrol theft is a common occurrence, insurance companies do not replace the cost of petrol, because they state that their coverage is based on the exact terms of the policy. In other words, the policies cover actual theft of the car and/or items inside the vehicle or major damage caused by collisions. As the petrol is currently not classed as being “inside” the vehicle, it is not covered and neither is the petrol tank break-in damage as it was not an accident, it was vandalism.

The BBC recently reported on petrol theft in the UK. In this report, the AA called the petrol theft situation a "nuisance, not an epidemic." The implication is that insurance companies do not plan to cover petrol charges in the case of theft because the issue is not a major one.

In response to the escalating incidences of petrol theft, many people have begun using anti-theft equipment, which protects unauthorized entry to the petrol tank cap through a lock or other device. However, petrol thieves are able to circumvent anti-theft equipment by tearing off petrol tank caps with lock breaking equipment or drilling a hole in the tank to siphon off the petrol. When thieves take these measures to steal, the result is often severe damage to cars. Often victims of the theft are left without cars that are significantly damaged, and that they can no longer drive.

http://www.noclaimsdiscount.co.uk/insurancepointed out to insurance customers concerned about petrol theft that a better solution “might be to simply leave your petrol tank unsecured. In the first place, again, it's unlikely any protection you buy will really protect you from petrol theft; so buying such equipment may be a waste of money.” The cost of replacing a tank of petrol is less than the cost to potentially repair a car’s petrol tank.

ABOUT NoClaimsDiscount.co.uk- NCD News covers insurance related news aimed at both the industry and consumers, providing a balanced look at developments that could affect its readership. You can find more information on the insurers covered in this article at http://www.noclaimsdiscount.co.uk/car