Car Insurance and Flood Damages, Does it Cover it?
In the United States, floods are one of the most common natural disasters that happen quite often. Statistically, it has been proven in the past few decades, flooding has actually doubled, it’s quite a scary thought. Flooding happens when you have rain that lasts for quite a while, or in some situations hurricanes. During these situations, your first instinct is to make sure your place of stay is well protected to minimize any risk towards you. Alongside this, you should always be well prepared in advance and have all bases covered. This is why proper home insurance as well as adequate car insurance is a must. When you are shopping around for car insurance, find out if your policy covers you for flood damage. There should be a million and one question in your head by this point which is why we have a quick breakdown of answers for you with car flood insurance.
Here are the answers to the frequently most asked questions about flood damage coverage on car insurance.
Am I Covered In the Case of Flood Damage?
Yes, when it comes to auto insurance you are covered under the comprehensive insurance coverage. Although, if you are looking to cut corners and just take basic insurance such as only liability insurance coverage, then you most likely might not be covered. But remember that you are not required most of the time to have these coverages if you own your vehicle. Make sure you look over your insurance policy and have all bases covered.
Is Hurricane Damage Covered?
In most cases, you are covered. If you have comprehensive insurance coverage, double-check the insurance policy and you are good to go.
If you have recently purchased a new vehicle by either leasing or financing it you are required to have comprehensive insurance on that vehicle. Regardless, don’t let the premise of a brand new vehicle dictate the fact that you’ll be getting comprehensive insurance coverage. Suppose you recently bought a vehicle out cash, we highly recommend you get the coverage for that vehicle. The rule of thumb for this is, if your car is younger than 10 years old you should keep it or that the potential damage that could happen to your vehicle due to flood damage surpasses the actual cash value. So whichever of these two come first, it’s a great indication for which action you should take.
Just remember if you decide to be a bit of a rebel and not option comprehensive insurance coverage on your policy and you are placed in the unfortunate event of a flood you may be out of luck.
There are some considerations that come along with comprehensive car insurance. There are some situations even if you do have comprehensive insurance that covers flood damage, you may want to consider towing insurance as well. This is in case you are unable to get your vehicle out of the flood and would have to have it towed. That’s great especially since you can use it for many other services such as break downs, tire pops you name it. Did we mention that it is pretty inexpensive to add on to your policy as well?
If you are faced in a situation where you have to file an insurance claim for flooding on your vehicle its always best to be prepared to make sure you get a fair payout from your insurance company. One way to make sure your claim is accessed properly is by taking photos and videos of the situation. Make sure you capture all angles of the vehicle providing the insurance company ample information to work off of. Not only does this go on your record but it also gives them a good indication of how high the water has reached and what damages have or could have happened based on statically data and tests. It can help to determine if this is a total loss or something that could be repaired.
Once you’ve had the time to do this, make sure you submit your insurance claims as early as you can. Remember if you are in this position where you are submitting an insurance claim, you can bet that other people are out here doing the same thing. Regardless of technical advances in the insurance industry, the headcount of employees may not be sufficient to handle the capacity of the insurance claims coming in, essentially it is a first come first serve basis.
Well in this situation, you pretty much are unable to do anything. If your insurance company declares your vehicle a total loss you will be given a payout of the actual cash value just before the flooding. Now what you do with the money is up to you. How you determine what a total loss is on the vehicle is dependent on many factors and different states have different regulations for this. For example, some states may write the vehicle off at 75% where some could be 100%. This means the repair would cost x percent of the vehicle’s actual cash value.
No matter what the situation is, during a time of a flood or hurricane make sure you stay safe. If you have the chance to protect your assets or even minimizing the damages without going into harm’s way, definitely do it. If not, it’s best to deal with the aftermath of your vehicle and have an insurance claim made and take care of the rest. Remember that you can always get a new car!