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Does my car insurance cover flood damage?
Whether or not you’re covered depends on the level of car insurance you have purchased for your vehicle. In general, only comprehensive car insurance policies cover flood damage. Third Party Property Damage and Fire and Theft policies do not. Comprehensive car insurance is the most comprehensive type of car insurance available, and it covers a wide range of events, which will typically include flood damage, theft, vandalism and fire.
There are factors which could impact what’s covered, so it’s important to carefully read your policy documents, such as the Product Disclosure Statement (PDS), before taking out the insurance. Those factors include:
- The insurer’s definition of ‘flood’: Insurers generally have a specific definition of a ‘flood’, which typically means water from a natural watercourse (like a river, for example) that covers land that’s not usually covered by water. However, definitions could vary. Also, a policyholder’s understanding of ‘flood’ may be different to what an insurer considers a flood to be. For example, it typically won’t be considered ‘flood damage’ if a car is filled with water from above, such as if someone leaves their car window down during a storm. This could be considered ‘water damage’, which is also a typical inclusion in comprehensive car insurance policies but may affect what, or how much, you can claim.
- Waiting or exclusion periods: Some insurers may have a waiting period for flood cover, typically 24 hours from the start of the policy. This means that you will not be covered for flood damage if it occurs within the first 24 hours of your policy starting.
- Limits of cover: There could be limits to things that are covered in your policy. For example, are your belongings inside the car also covered by your policy? Are there any limits applied to the amount that you can claim, such as you only being allowed to claim up to a certain value for certain items or damage? Are certain items not covered (such as jewellery, cash or business equipment)?
What am I eligible to claim for flood-damaged cars?
If you have comprehensive car insurance and your car is damaged by a flood, you are typically eligible to claim, depending on your specific policy inclusions:
- The cost of repairs: such as the cost of repairing any damage to your car’s body, engine, interior and electrical system.
- The cost of replacing your car: If your car is so badly damaged that it cannot be repaired, your insurer may replace it with a new or used car of similar value.
- Hire car: If your car is damaged by a flood and you are unable to use it while it’s being repaired, you may be eligible to claim for the use of a hire car, if that’s included in your policy. Some policies offer this as an optional extra, which generally costs more.
- Your possessions: If items in your flooded car, such as your personal phone, clothing, sports equipment, luggage or tools, are damaged, you may be able to lodge a claim. There are usually limits applied, such as the amount you’re able to cover, and the types of items you can claim (typically you won’t be able to claim business equipment, such as a work laptop).
Compare car insurance policies
If you’re comparing car insurance policies, the comparison table below displays some of the policies currently available on Canstar for a 30-39 year old male seeking comprehensive cover in NSW without cover for an extra driver under 25. Please note the table is sorted by Canstar Star Rating (highest to lowest) followed by provider name (alphabetical) and features links direct to the providers’ websites. Consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD), before making a purchase decision. Contact the product issuer directly for a copy of the PDS and TMD. Use Canstar's car insurance comparison selector to view a wider range of policies. Canstar may earn a fee for referrals
How to make a flood damage claim
If your car is damaged by a flood, you should contact your insurance provider as soon as possible. You will typically need to provide the following information:
- Your policy number
- The date and time of the flood
- The location of the flood
- A description of the damage to your car
- Any photos or videos of the damage.
Your insurer will then investigate your claim and assess the damage to your car. If your claim is approved, your insurer will pay out the cost of repairs or replacement, minus your policy’s excess amount—which is the amount you contribute when making a claim on your insurance.
How can I prevent damage to my car during a flood?
Insurance provider AAMI says that in order to prevent flood damage to your car, it pays to think about where your car would be safest in the event of a flood, either in your garage or on higher ground. That said, driving to higher ground is only advisable if it would be safe to do so, so they note that it’s important to check for flood updates and road closure information before setting out, pack spare fuel, a spare tyre and an emergency kit, and make sure your car’s front and rear lights are functioning. AAMI cautions that you should never drive through floodwaters, and says that the smartest and safest decision in this case is to turn around.
What should I do if my car is flooded?
It can be upsetting and stressful to find that your car has been damaged by a flood, and if you find yourself in this situation, it’s advisable to contact your insurance provider as soon as possible to inform them of the accident and establish your next steps. It’s generally not advisable to attempt to drive a car if floodwaters have reached the interior, even if the damage only appears to be superficial. Instead of attempting to drive your flood-damaged car, it’s generally advisable to arrange to have the vehicle towed to a mechanic, who can assess the condition of the vehicle and ascertain whether it’s salvageable.
Cover image source: Adam Marshal/Shutterstock.com
