Does Flood Damage Covered Under Car Insurance?

Flood damage is not something unheard of. Every year in India, heavy rainfall is noted in several parts of the country and some of them are unfortunate to witness floods as well. The worst affected areas are reported to have severe damage caused by the overflow of water everywhere, which includes loss of life and property both. A number of cars parked on the roads too get drifted away in the water or are completely damaged. Can this huge loss be covered by car insurance? Let’s find out in this post.

Does Car Insurance Cover Flood Damage?

Yes, car insurance does cover flood damage, provided you have purchased a comprehensive insurance policy. A comprehensive plan is one that covers costs incurred on the repair or replacement of a car, especially after the damage has been done during a natural or man-made disaster.

Natural disasters include calamities caused by nature such as floods, earthquakes, droughts, hurricanes, cyclones, and the like. Man-made disasters refer to damage caused by events that are driven by man. Examples include fire, road accident, theft, and the like.

A comprehensive car insurance policy is generally costlier but can cover huge losses caused during flood damage. The car may require repairs that cost a lot or may be completely damaged due to the flood effect. In both the cases, the owner is likely to incur a huge loss, which can be covered to a large extent with a comprehensive plan.

What is Third-Party Car Insurance?

A comprehensive car insurance plan is different from a third-party car insurance policy. The latter specifically provides coverage against damage caused to a third-party person or vehicle. This is a basic insurance plan that offers financial protection to a third-party in case of any damage caused by the policyholder to the former.

Third-party car insurance is therefore different from a comprehensive insurance plan which provides complete protection to the car and the car owner, including third-party liabilities. Also, comprehensive insurance is an optional plan as against third-party car insurance which is mandatory to purchase as per the law.

Type of Car Damage Caused by Floods

In case of flood, your car may suffer the following types of damages:

1. Damage to Electrical and Electronic Parts:

Floods often cause short circuits, causing damage to the normal functioning of the electrical and electronic components of the car, such as the warning lights on the dashboard.

2. Damage to the Engine:

During flood, water may enter the engine too, causing its internal components to damage either partially or completely.

3. Damage to the car Upholstery:

The interiors of the car, such as the seats, foot mat/carpet, and other furnishings can also get damp due to the water entering the car. It may also damage the upholstery.

4. Damage to the Gearbox:

The water can get inside the gearbox, causing it to stop functioning.

Add-on Riders for Car Insurance to Cover Flood Damage

You can buy comprehensive car insurance online to seek protection against damage to the car from floods. However, your comprehensive policy may not be able to provide complete coverage against certain losses caused to the car gearbox or engine due to flood water. Hence, to cover the repair or damage costs incurred for the internal parts of the car, you may need to buy certain riders in addition to your base plan for extra coverage.

Here are some car add-on riders that provide complete coverage against flood damage to your car:

1. Cover for consumables:

Generally, a comprehensive plan will not cover the cost of replacing consumable items in the car. These include nuts and bolts, engine oil, grease, washers, and the like. The add-on cover for consumables covers the cost involved in replacing or repairing some of these items due to damage to their functioning caused by the flood.

2. Cover for Engine Protection:

Engine repair involves the maximum cost and in the absence of an add-on cover, you may have to shell out the entire sum from your pocket. Hence, it would be wise to purchase this rider.

3. Cover for Roadside Assistance:

In case of waterlogging on the streets during floods, the car may break down in the middle of the road. This is where the roadside assistance rider can help. Your insurer would arrange for a mechanic nearby to reach you or get your car towed away to the closest repair shop.

How to Prevent Damage to Car During Floods?

Yes, your car insurance policy would cover the losses incurred due to damage by floods; however, it is possible to prevent such damage by following these measures:

1. Choose high-ground parking for the car:

In heavy rainfall areas, always take care to park your vehicle at an elevated ground surface. This majorly lowers the risk of water ingression causing damage to the internal parts and the furnishings of the car.

2. Keep the battery disconnected:

When there is heavy rain outside, disconnect the battery of your car for that duration. This would help avoid short circuits in case of water ingression into the engine and internal electrical parts.

3. Double check the windows:

Make sure they are always rolled up and that there is no gap to allow water to enter the car.