Does Your Car Insurance Policy Cover Flood Damages?
Every monsoon season, millions of car owners across India wonder whether their car insurance covers flood damage.Read more
What is Flood Damage in Car Insurance?
Flood damage coverage in car insurance covers for loss or physical damage to your car caused by floods, heavy rainfall, waterlogging, overflowing drains, or similar natural calamities. With this cover, the insurer pays for the repair or replacement of your car parts (as per policy terms), including the engine, electrical components, braking system, gearbox, interiors, and electronic sensors.
This protection is not included in the basic third-party insurance and is only covered if you have comprehensive or a standalone own-damage policy.
Types of Flood Damages to a Car
Here is a list of damages caused to a car due to floods:
- Engine Damage: The engine is the most expensive component of a car and is most vulnerable during a flood. If water enters the air intake and reaches the combustion chamber, it can result in a hydrostatic lock, which means a seized engine. This is because, unlike the fuel-air mixture, water cannot be compressed. Consequently, it can lead to bent connecting rods, cracked cylinder heads, and complete engine failure.
- Electrical Damage: Modern cars have hundreds of sensors, fuse boxes, and control units. Even a little water can cause a short circuit, trigger warning lights, disable the infotainment system, or permanently damage the ECU (Engine Control Unit).
- Upholstery Damage: Floodwater has dirt, silt, and bacteria, and its prolonged exposure ruins the car seat fabric, carpets, dashboard padding, and door panels. In severe cases, the entire interior may need to be stripped and replaced.
- Gearbox & Transmission Damage: Water entering into the car gearbox washes away lubricating fluid, which causes metal components to grind against each other, resulting in expensive repairs.
- Brake System Damage: If you drive through deep water, it saturates brake pads & drums and significantly reduces braking efficiency. Even after the water dries, brake components can corrode and deteriorate faster than usual.
Does Car Insurance Cover Flood Damage?
Yes, your comprehensive car insurance policy covers flood damage. Therefore, it is essential to get adequate car insurance for flood damages. Since floods come under natural calamities, car insurance companies compensate policyholders for repair or replacement costs arising from flood-related damage, as per policy terms & conditions. However, the coverage depends on the type of policy:
| Type of Policy |
Flood Damages |
| Third-Party Insurance |
Not Covered |
| Standalone Own Damage Insurance |
Covered |
| Comprehensive Car Insurance |
Covered |
Hence, if you live in a city that often faces heavy rainfall or waterlogging, having a comprehensive car insurance policy can help protect you from flood-related financial losses. You can further enhance your comprehensive coverage by including add-on covers, which are available for an additional premium. Moreover, before you pick a car insurance plan, it is a good practice to compare premium prices from different insurers. It not only allows you to customise your policy as per your coverage requirements, but also helps save on your premium costs.
Best Car Insurance Add-ons for Flood Damage
To enhance the coverage for damages or losses to your car due to floods, you should consider including suitable car insurance add-ons in your comprehensive or own damage policy. Have a look:
- Engine Protection Add-on Cover: A standard comprehensive car insurance policy does not cover damages caused to the car engine. You will get financial coverage for damaged engine parts if you obtain the engine protection cover.
You may also read - Benefits of Engine Protection Cover in Car Insurance Policy
- Consumables Cover: You get compensation to replace consumables such as gearbox, engine oil, lubricants, nuts & bolts, grease, etc. Not all these items are covered in your basic car insurance policy. Therefore, you are protected against the expenses incurred on consumables during flood damage.
- Roadside Assistance Cover: In the monsoon season, the roadside assistance cover is essential to provide 24X7 emergency roadside assistance, including towing services or fuel assistance, if you are stuck due to rain or flood.
You may also read - How Can We Use Roadside Assistance Cover in Car Insurance?
- Zero Depreciation Cover: With time, the value of your car and its parts depreciate due to regular wear and tear. At the time of claim settlement, your insurer does not pay the entire vehicle value. However, depreciation is not considered if you have this add-on cover, and you will receive the total value.
How to File a Car Insurance Claim for Flood Damage?
Follow these simple steps to raise a car insurance claim for damages due to flooding:
- Do not start the engine if your car has been submerged in water, as it may cause further damage.
- Inform your insurer immediately after the incident and register the claim.
- If you cannot drive the car safely, arrange a towing service.
- Take clear photos and videos of the damage.
- Submit the claim form and required documents to your insurance company.
- Do not attempt repairs before the insurer appoints the surveyor and completes the damage inspection.
- Allow the surveyor to assess the extent of damage.
- After claim approval, get your car repaired at a network garage for cashless settlement or any garage authorised by your insurer.
- In case of a cashless claim, the insurer will settle the approved repair costs directly with the garage.
- In case of a reimbursement claim, pay for the repairs from your pocket, submit the invoices & bills to your insurer, and you will receive reimbursement as per policy terms.
Safety Measures to Follow if Your Car is Submerged in Water
If your car is submerged in water or you are driving through a flooded area, here are some safety tips you should follow:
- Avoid starting the car if it is submerged in water. You should disconnect the battery and tow the car to a workshop.
- If safe, drive the car in lower gears and try to maintain your speed.
- Test your brakes before leaving the house and after leaving the flooded area.
- Avoid attempting to start the car even if the water level has receded.
Key Takeaways
Flood damage to your car can occur unexpectedly, and repair costs can be significantly high. A comprehensive car insurance policy, along with the right add-on covers, can ensure that you are financially protected. Here are the key points to remember:
- Only comprehensive car insurance covers flood and water damage to your own car.
- Standard comprehensive policies do not include coverage for hydrostatic engine lock, so opt for the Engine Protection add-on.
- For complete protection against floods, include add-ons such as zero depreciation, engine protect, consumables, and return to invoice.
- Never start a flooded car, as the insurer can deny your engine damage claim.
- Inform the insurer and raise the claim request immediately after the incident.
- Record evidence with photos and videos of the damage.
