Does Your Car Insurance Cover Flood Damage? Key Insights and Add-ons
With many areas experiencing intense rainfall, leading to waterlogged roads and potential vehicle damage, it is essential to understand how your car insurance policy protects you. Having appropriate insurance coverage is vital to manage expenses related to vehicle damage.
“It’s important to have comprehensive insurance because third-party cover alone doesn’t offer protection. However, while a comprehensive policy offers broad protection to your vehicle, it only protects up to a certain extent,” noted Nitin Kumar, Head – Motor Insurance, Policybazaar.com.
Subhasish Mazumder, Head—Motor Distribution, Bajaj Allianz General Insurance, added, “Comprehensive car insurance covers third-party liability and own damage offering protection from natural calamities such as floods, storms, cyclones, and earthquakes. Individuals should consider additional add-on covers to enhance the protection of their cars.”
This is where insurance add-ons enhance your policy.
Key Add-On Covers for Enhanced Protection
Here are some add-ons to consider:
- Engine Protection Cover: Water entering your engine through flooded roads can cause severe damage, possibly leading to hydrostatic lock. Standard policies typically do not include coverage for this damage. This cover offers essential protection against those expensive repair costs.
- Consumables Cover: Monsoon-related damage can be harsh on your car’s engine oil, lubricants, and gearbox. Kumar explained, “Regular comprehensive policies do not provide protection for these damages, hence a consumables cover is recommended. This add-on covers the cost of items like engine oil, lubricants, nuts, bolts, and other small parts that are generally excluded from standard policies.”
- Nil Depreciation Cover: Car part depreciation is normally deducted when settling claims, leaving the policyholder to cover the difference. You get the full claim amount without depreciation deductions with this cover.
- Tyre Protection Cover: Your car’s tires are highly susceptible to damage when driving through waterlogged areas. This add-on helps cover tire repair or replacement costs. With debris and unseen potholes, this cover avoids significant out-of-pocket expenses.
- Roadside Assistance Cover: The likelihood of a breakdown during the monsoon due to flooded roads and potholes is higher. This add-on helps you get assistance within about 30 minutes.
Important Considerations and Safety Tips
Keep these in mind:
- If your vehicle is damaged by water ingress, avoid starting it immediately.
- Ensure the water has receded before attempting to start the vehicle.
- Park your vehicle in a safe, covered area to prevent further damage if it breaks down.
- Inform your insurer immediately if your vehicle is affected by a flood.
Mazumder advised, “Be mindful of actions affecting your claim, such as not starting a submerged vehicle; instead, call your insurer or RSA (Road Side Assistance) provider immediately. Choose a reputable insurer with a strong claim settlement record and avoid selecting based solely on low premiums. These steps will help you secure comprehensive coverage and a smooth claims process.”
Filing a Claim for Flood Damage
Filing a claim is straightforward: inform your insurance company, gather evidence (photos or videos), and submit necessary documents, including your vehicle’s RC, driving license, and policy details.
Once the damage assessment is complete, the claim will be processed.
EV-Specific Flood Protection
Electric vehicles (EVs) have their own vulnerabilities, especially during monsoons. Kumar said, “Unlike petrol and diesel vehicles, EVs have numerous electric components and a high-capacity battery, which are highly sensitive to water damage. Comprehensive insurance for EVs is crucial, and specific add-ons can provide additional protection.”
- Battery Protection Add-on: EV batteries cost between 40 to 60% of the total vehicle price. This add-on covers damages from water ingress, power surges, or accidents. Given the high replacement costs, this is important coverage.
- Charging Equipment Cover: This covers damage to charging equipment (cables, home charging stations) and protects against theft. Useful during monsoons since water-logged basements can damage this equipment.
- Enhanced Roadside Assistance: Includes towing services to the nearest charging station essential because of the limited EV charging infrastructure.
Comprehensive car insurance with appropriate add-ons is critical for those in flood-prone locations, offering crucial coverage to protect against the financial burden of flood damage. It protects your vehicle’s value and functionality against significant impacts.
