Car Insurance and Flood Damage

Flooding in your car can cause everything from mold issues to engine problems, so knowing whether or not auto insurance covers flood damage is paramount to properly protecting your ride. Read more about damage caused by floods and how your insurance policy could help.

How Water Can Damage Your Car

Depending on the severity of the flood, your vehicle can suffer some major damage — from electrical and computer system failure, to air bag and brake malfunction. Even minor flooding can lead to mold, rust, and other corrosion that affect your car’s performance and resale value.

Obviously, these issues can pose a big safety threat, so make sure to check your car’s claim and repair history if you aren’t the original owner. It can help prevent heartbreak (and an empty wallet) down the line.

How Auto Insurance Can Help With Water Damage to Your Car

Sometimes even the most vigilant storm preparation can fall through, leaving your car’s pedals under a puddle, or worse. Luckily, your car insurance policy can step in to help pay for the repair of your vehicle after it’s damaged or totaled by a flood — depending on the coverage you choose to carry.

Comprehensive coverage, which is generally optional unless required by a loan or leasing company, can help safeguard your wallet if your ride’s hit by disasters like floods, falling objects, and much more.

When you purchase comprehensive for your policy, you’ll choose a deductible, which is the out-of-pocket cost you agree to pay before your insurer pays for any damages. Many people opt for a low deductible (or none at all) so that mishaps like flood damage, broken glass, vandalism, and more, don’t cost them a penny.

If your car needs to be replaced after a flood, you’ll usually be reimbursed for your ride’s actual cash value (ACV) after you pay your comprehensive deductible.

It’s important to note that if you don’t carry comprehensive coverage on your car insurance, you’ll likely be responsible for paying for any repairs your car needs due to flood damage. And even if you do carry comprehensive coverage, it’s important to notify your insurance company as soon as possible if you think your ride may have suffered some damage from a flood — this can prevent further damage (and even denied claims) down the road.


Source: esurance