Does Auto Insurance Cover Flood Damage?

If you’re located in Michigan, then your car is at high risk of getting damaged due to flooding. Flood is mainly an issue in Michigan right after Spring, when the winter ice melts followed up by heavy rainfalls.

On average the water level rises from 21 to 25 feet or more, so as a result the water can easily submerge your vehicle, damage the electric components of your car, and corrode the metallic parts including the car’s engine.

Floods can last for a few days to several weeks, and within this time frame your car can get damaged to the point that it's beyond repair. Depending on the severity of the damage it can even cost you a hefty amount to get it fixed.

But there’s a high possibility that you may need to entirely replace your car, and that’s a huge financial loss. So, to safeguard yourself financially from the substantial risk of flood, you may be wondering whether auto insurance covers flood damage. The good news is, yes it does, however flood damages are only covered by comprehensive auto insurance.

Does Basic Auto Insurance Cover Flood Damage?

If you’re under the assumption that minimum coverage insurance, particularly liability auto insurance commonly known as PLPD insurance in Michigan covers flood damage then you’re under the wrong assumption here.

Only comprehensive auto insurance covers your vehicle from flood damage, or from any other natural disaster.

What Auto Insurance Coverage Do I Need for Flood Damage?

You need to add comprehensive auto insurance coverage to get financial protection from flood damage. Comprehensive auto insurance is an optional auto insurance policy that’s specifically designed to cover damages that are beyond your control. These incidents typically include theft, fire hazards, and natural disasters such as severe storms, and flooding.

If you’re looking for an affordable insurance agency in Michigan within budget to protect your car from flood damages, consider checking our comprehensive auto insurance coverage, along with gap insurance, rental reimbursement coverage among others. To better serve every prominent location in every Michigan, we have regional offices in Flint MI, Saginaw MI, and Mt. Pleasant MI.

Comprehensive Auto Insurance to Safeguard Your Car Against Flood Damage

As comprehensive auto insurance is an optional policy there is no minimum requirement to its coverage limit. So, it’s typically your discretion how much comprehensive auto insurance you’re willing to purchase.

But as flooding poses a severely high risk to the pointing of damaging your car to the point of total loss, it is highly recommended that you consider insuring it to the amount that’s equivalent to replacing your car. Comprehensive auto insurance will pay you the amount of your car’s current market value minus depreciation, and deductibles.

Well, you may have to spend a significantly higher amount on auto insurance premiums, but ultimately it can protect you from a far greater financial risk. Isn’t it better to spend a few hundred additional amounts on your auto insurance rather than compromising your car which is worth $20,000 to $30,000 or more?

Floods are inevitable, and the worst part is you don’t know when you will be facing one, so that’s why it’s always best to be well prepared. Also, if you’re planning to acquire comprehensive auto insurance right before the flood, you most likely can’t.

Most auto insurance companies are reluctant to sell comprehensive auto insurance right before the natural disaster is about to take place. Insurance companies that are up for selling the commercial auto insurance right before the flood are likely to charge a significantly much higher rate.

So, it’s recommended that you purchase comprehensive auto insurance as soon as possible to stay financially protected against sudden floods.

Additional Auto Insurance Coverages to Consider for Flood Damage

If you want enhanced financial protection, then you can consider purchasing two additional auto insurance coverages along with comprehensive auto insurance which includes gap insurance, and rental car imbursement coverage.

Here’s a detailed breakdown below to understand how these two types of auto insurance coverages can provide enhanced financial protection.

Gap Insurance

Although gap insurance does not directly protect you against flood unlike comprehensive auto insurance, and that’s why it’s suggested as an additional coverage, particularly if you have purchased your car on loan.

Unlike comprehensive auto insurance, if your car gets damaged, or even totaled the gap insurance will compensate the market value along with the additional amount that you need to repay your debt.

For example, if your car is beyond repair due to flood damage and now if your car’s current market value is $20,000, and if you owe $25,000 in total purchasing the car on loan. The gap insurance will compensate the additional $5,000. So, it will cover $25,000 in total.

Rental Car Reimbursement Coverage

If you need your car for your daily commute, and if it’s stuck in the auto repair shop, it is crucial for you to get another car. With the rental car reimbursement coverage, you can rent a car and use it while your one gets fixed at the auto repair shop.

Even though it does not provide any direct financial protection due to the flood damage, it does pay for the car rental expense on a daily basis. However, you can only use the rental car reimbursement coverage for a maximum of 2 weeks, up to your maximum coverage limit.

If you think about it, 2 weeks should be enough time to get your car repaired from flood damage or replaced if it’s beyond repair. It’s a great additional coverage to finance your daily car rentals which can cost $30 to $75 per day. So, by getting the rental car reimbursement coverage you can save a significant amount on the rental expense.

Is it Difficult and Costly to Repair a Car from Flood Damage?

Whether it’s difficult and costly to repair a car from flood damage mainly depends on the severity of the damage. If it’s minor damage then it should be quite easy to repair, and you wouldn’t have to replace any expensive parts. But if your car gets submerged in flood, and stays there for a few days or more, it can cause severe damage that is difficult, or even impossible to repair.

Even if it is possible to repair it, you may have to replace significant parts of the car, including its engine. So, the cost of repairing the car could cost as much as buying a new one. Repairing the car can get even more difficult if its parts are no longer available in your area, or if it’s very rare that’s difficult to acquire, and very expensive to purchase.

What Should You Do if Your Car Gets Destroyed Due to Flood Damage?

If your car gets destroyed due to flood damage, the first thing that you should do is immediately contact your car insurance company and claim comprehensive auto insurance.

If you haven’t taken your car to the auto repair shop yet, you should do that as soon as possible. Get the car checked and send a report of the damage to your insurer along with the quote from the repair shop for repairing or replacing your car.

Remember, it’s crucial to inform your insurer immediately or as soon as possible, this is mainly because your insurance company will verify how your car got damaged, and to what extent, and whether it got damaged due to flood.

If everything checks out accurately, your insurer will provide the compensation required to repair or replace the car.

How to Claim Auto Insurance for Flood Damage?

Claiming your auto insurance for flood damage is fairly a quick, easy and straightforward process, but it’s crucial to know the right steps to ensure a smooth auto insurance claim. Here are the steps that you should follow to claim auto insurance for flood damage.

• Contact Your Insurance Company: It can either be by a call, email, filling up online insurance claims form on their website/app or by visiting their office. All you need to do is inform them that your car has been damaged due to a flood, and you would like to claim your auto insurance.
• Gather Your Car’s Information and Documents: Make sure to keep your car’s VIN (vehicle identification number), vehicle registration paper, driver’s license and other essential information and documents ready. You may need to either provide these information while filling out the form or for claiming your auto insurance.
• Record Proof/Evidence of the Flood Damage: You should take pictures, and videos of your car getting affected by the flood, particularly to the extent till which it has been submerged, or how much water has visibly gotten inside the car. Once you take it to the auto repair shop record the damage to each part as well, and document what needs to be repaired/replace and how much it will cost.
• Wait for the Insurance Company to Verify Your Insurance Claim: It can take a few minutes, days or even several weeks for your insurance company to verify your auto insurance claim. Usually, it takes up to a week. An insurance adjuster will be appointed to verify the legitimacy of your claim, if everything checks out accurately, your insurer will compensate you up to the coverage limit shortly.
• Pay Your Deductible: The final step is you have to pay your deductibles, and then your insurer will compensate you as much as it’s required up to your coverage limit.

Tips to Protect Your Vehicle from Flood Damage

Getting comprehensive auto insurance will surely keep you on the safe side from hefty compensations but it’s always best to take effective measures to protect your car from flood damage.

Moreover, if you’re taking effective steps, it reduces the risk associated with flood damage, so that means your insurer may have to compensate you less or not at all. So, this can help you get comprehensive auto insurance coverage with lower rates or with some sort of discount and exclusive offer.

Here are some effective tips that you can follow to protect your vehicle from flood damage.

• Park Your Car on a Higher Ground: If it’s possible try to get your car parked on a higher ground. There are commercial high-rise buildings with parking lots, perhaps you can use one to park your car during flood season.
• Avoid Driving Through Flooded Areas: Depending on the depth of the water level, water can get inside your car and damage several components including the battery and the engine. So, to prevent that it’s highly recommended that you avoid driving through flooded roads.
• Floodproof Your Garage: Consider sealing off any areas from where water can flow through. You can use rubber sheets, or any special waterproofing compound to prevent water from penetrating into your garage. By properly floodproofing your garage, you can keep it as dry as it can be.
• Disconnect Your Car’s Batteries: If the flood water does get into your car, it can damage the electric parts, and compounds. So, an effective step to prevent that is to disconnect your car’s batteries.
• Get Your Car Checked for Damages: The longer the flood water stays in your car the more damaged it will get. So, if flood water does get inside your car, the most important step is to get it checked by an auto repair technician to prevent further damage, and of course to repair it as well.

Bottomline: Does Auto Insurance Cover Flood Damage?

Yes, auto insurance covers flood damage, but only comprehensive auto insurance does. And to get enhanced coverage, you can consider getting gap insurance, and rental car reimbursement coverage.

There are many cities and locations that are highly prone to flooding in Michigan all year round. Although seasonal floods occur during spring, sudden floods can occur too. So, it’s best to stay prepared, and financially protected with adequate comprehensive auto insurance coverage.

If you’re interested in purchasing auto insurance to keep your car secure from flood damage, you can contact us to get a free quote and consultation with one of our auto insurance experts.

FAQ

Which type of insurance would cover your car if it got caught in a flood?

Comprehensive auto insurance is the only type of auto insurance that’s specifically designed to cover damages to your car due to any sort of natural disaster including flood. So, if you’re caught in a flood, you will need to have comprehensive auto insurance to cover the damage, repair expenses and replacement costs.

What happens if your car is destroyed in a flood?

If your car gets destroyed in a flood to the point that it’s beyond repair, your insurer will pay you its current market value minus depreciation and deductibles against your comprehensive auto insurance coverage.

How do I know if my car insurance covers flooding?

If you have comprehensive auto insurance coverage, then your car insurance covers flooding as comprehensive auto insurance is designed to cover flooding and other natural disasters such as storms, earthquakes, tsunamis among others.

Is flood damage car repairable?

Yes, it is but it depends on the severity of the damage, and the availability of any necessary parts that need to be replaced.

Does full coverage auto insurance cover flood damage?

The full coverage auto insurance includes liability insurance, comprehensive insurance, and collision insurance along with few other coverages which generally varies based on insurance company, and location. But as full coverage auto insurance typically includes comprehensive auto insurance so yes it does cover flood damage.