Table of Contents
Car insurance covers flood damage to your vehicle if you have the right type of policy in place. You’ll need comprehensive coverage in order to have your car insurance company cover your vehicle repair or replacements costs, minus your deductible, if any.
Here’s what to know about flood damage and auto insurance, plus what exclusions may apply.
Key Points
• Comprehensive car insurance covers flood damage, including natural disasters and incidents from driving through water.
• Lenders often require comprehensive coverage for financed or leased vehicles.
• Restarting a flooded car can cause severe engine damage and should be avoided.
• Detailed maintenance records and damage documentation are essential for insurance claims.
• Claim processing time can vary, typically up to 30 days, depending on the state.
Understanding Car Insurance Coverage for Flood Damage
How does car insurance cover flood damage? Through a comprehensive policy — here’s how it works.
Overview of Comprehensive Car Insurance
Comprehensive coverage is an optional add-on to a standard car insurance policy, though lenders may require it if you’re financing or leasing your car.
This type of coverage gives you financial protection when your car is damaged outside a collision, including weather events such as flooding, heavy rains, and hail storms. Of course, flooding may be just one reason why your vehicle was damaged. You could also be covered if, say, strong winds cause a tree branch to fall on your car.
Difference Between Comprehensive and Liability Insurance
Your state may not require you to purchase a comprehensive insurance policy. In fact, most states have liability insurance requirements instead. But they’re two very different types of policies.
• Comprehensive: Covers damage to your vehicle that’s caused by something other than a collision.
• Liability: Covers the cost of other people’s property damage and bodily injury costs when you’re at fault.
What Is Typically Covered Under Comprehensive Policies?
Here are more details on what a comprehensive policy usually covers, up to a limit:
• Theft or and vandalism
• Fire
• Flooding
• Hail
• Collision with an animal
Recommended: A Comprehensive Guide to Car Insurance
Find the Right Auto Coverage at the Right Price.
Competitive quotes from different car insurance providers could help you save $1,007 a year on average.*
Types of Flood Damage Covered by Car Insurance
Not all water damage is treated equally by insurers. Let’s look at a few flooding scenarios when comprehensive coverage may kick in.
Water Damage From Natural Flooding Events
Typically, comprehensive coverage pays for vehicle damage caused by rising water levels. You can file a claim to cover the costs. Depending on the extent of the damage, your insurer may consider it a total loss, meaning it will cost more to repair than the car is worth.
Damage Caused by Driving Through Floodwaters
Does full coverage car insurance cover flood damage from driving through high water? Generally, yes. Whether your engine or electrical systems are harmed or you discover rust and mold, you can file a claim to help cover the costs of all these problems.
Deterioration Due to Prolonged Exposure to Water
In some instances, damage caused by prolonged water exposure is also covered by your comprehensive insurance policy. However, it typically needs to be from something like heavy rain that got into your car or parking your car in an area that flooded.
Keep in mind that you may not be covered if the damage happened because your car wasn’t sealed properly. More on that below.
Recommended: What Does Flood Insurance Cover?
What Flood Damage Is Not Covered by Auto Insurance?
There are a number of instances when an insurer can deny your flood-related claim, even with comprehensive coverage in place.
Damage From Negligence
As the car owner, you’re responsible for both maintenance and preventative measures that can help protect your car from flood damage. For example, if your windows are left open or the seals around the door have deteriorated, your claim could be denied due to negligence.
Consequential Damage Not Directly Related to Flooding
Consequential damage refers to damage that’s not directly caused by the claim event — in this case, flooding — but by a related action. Let’s say your car stalls out in high water and you attempt to restart it, which you shouldn’t do as there’s a risk of engine damage called hydrostatic lock.
In the insurance company’s eyes, since you as the driver tried to restart the car, you caused the engine problem — not the flood waters. Therefore, you would likely not get your claim paid out.
Specific Exclusions in Standard Auto Insurance Policies
Check your policy for exclusions related to comprehensive coverage. Anything you installed on your own probably won’t be covered in your policy. Electronics are a common example, including stereos, scanners, GPS devices, phones, televisions, and other devices.
Filing a Claim for Flood Damage: Step-by-Step Guide
If your car insurance does cover flooding, you’ll need to file a claim in order to get reimbursed for the damage. Remember to ensure your surroundings are safe before trying to check on your car. Don’t enter standing water, since there could be dangerous powerlines submerged beneath the surface.
How to Document Flood Damage to Your Vehicle
When it is safe to get close to your car, take pictures and/or video of both the inside and the outside. You can also manually note issues you notice that may not come across clearly in pictures.
Next, submit all of the details to your insurance company through their claims process, either online, over the phone, or in their app if they have one.
Essential Information Needed for Your Claim
In addition to photos and video of the damage, you’ll also need the following information for a claim:
• Insurance policy
• Vehicle title
• Maintenance records
Timeline for Processing Claims and Receiving Compensation
Once the claim is submitted, you’ll work with an insurance adjuster to see how your coverage applies. While you may be tempted to immediately get your car worked on, wait for an approval from your insurance company. They may pay out for a total loss rather than repairs, depending on the extent of the damage. Also, keep receipts for extra expenses you incur, like rental car fees.
Your insurance company will likely take up to 30 days to process the claim, but the limit can vary by state.
How to Protect Your Car from Flood Damage
Help minimize the damage to your vehicle by following these steps.
Tips for Safeguarding Your Vehicle in Flood-Prone Areas
If you know a storm is coming, and your car is in a flood-prone area, you’ll want to take some precautionary steps. First, keep tabs on the storm so you know when it’s expected to come your way. Before the bad weather starts, move your car to higher ground to reduce the risk of flooding. You may also consider parking in a covered area to prevent further damage.
Once the storm arrives, avoid driving through high water. Even if a detour means a longer drive, it’s worth it to protect yourself and your car.
Importance of Maintaining Comprehensive Coverage
If you live in a flood- or storm-prone area, adding comprehensive coverage can give you major peace of mind.
But you need to purchase a policy proactively instead of waiting for a storm to land in the forecast. Insurance companies usually enact binding restrictions once a large storm is predicted. You’re unable to make changes or add coverage to your policy during this timeframe.
The Takeaway
Does car insurance cover flooding? Most car damages caused by flooding are often covered by your policy as long as you have comprehensive insurance. Make sure you have enough coverage for all types of surprise weather events by comparing multiple insurance quotes.
When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.
FAQ
Can I add comprehensive coverage right before a storm?
Insurance companies usually enforce binding restrictions when a large storm is in the forecast. That means policy holders aren’t allowed to make changes or add new policies until the binding period is over, which is typically after the storm has passed.
Is it worth getting flood insurance for my car?
Flood insurance falls under comprehensive coverage, which can be a wise choice because it covers damage caused by things other than collisions.
What should I do if my car is submerged or severely damaged by a flood?
First, don’t try to start your car if it has been submerged. Rather, reach out to your insurance company right away. They can give you guidance on the best next steps based on your situation.
Will a flood damage claim make my car insurance rates go up?
Your car insurance rate could go up after flood damage. This is especially true if you live in an area where severe storms are occurring more frequently.
How does an insurer decide if a flooded car is a total loss?
It depends on the repair estimate. If it costs more to fix the car than to pay out its current value, the insurer may declare it a total loss.
Photo credit: iStock/Ajax9
Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SOPRO-Q325-027