For car owners, regions prone to heavy rain or flood remain a significant concern due to the risk of car damage. This is due to the potential consequences of water-logged engines, flood-related damages, and electrical malfunctions that may prove financially burdensome. In such situations having the right insurance coverage becomes essential to ensure the utmost protection against the unexpected costs of replacing or repairing flood-damaged vehicles.
The article aims to offer comprehensive guidance on the style of car insurance policy to opt for and how insurance companies offer financial protection in the event of flood-related damages. Through a proper understanding of the nuances of insurance options, individuals can make informed decisions while choosing the most suitable coverage for their vehicles in flood-prone areas.
How Can Cars Be Damaged By Flood?
The flood can damage cars in various ways. With rising water levels, water can enter the engine through the air intake. This can damage crucial electronic components causing the engine to stall.
Water can also infiltrate the transmission, which may result in compromised shifting of gear and reduced performance. Moreover, the flood water may also corrode sensitive electronic systems such as the onboard computer leading to serious failures and malfunction.
Apart from this, moisture may also seep into the carpet, upholstery, and electrical connections may foster the growth of mould, which may short circuit electrical systems. The floodwater’s corrosive nature can also result in a deteriorated condition of the metal body of the vehicle and its undercarriage, thereby hampering the structural integrity. All these may incur substantial repair costs.
Can I Get Coverage For My Car’s Flood-Related Damages From All Car Insurance Policies?
Yes, a comprehensive policy for car insurance offers protection from vehicle damages due to floods, which is subject to depreciation based on the car’s age. A depreciation percentage of fifty is applicable for specific parts made of rubber and plastic.
This means that the policyholder will get only half of the entire cost of repair. The balance amount has to be paid by the policyholder out of his own pocket. At the same time, it is also essential to note that a standalone car insurance policy may not offer protection against all flood damages.
When Can An Insurance Company Deny Claim To Car’s Flood-Related Damage?
An insurance company may deny a claim related to flood damage if it is found that the damage results from the intentional action of the owner or the driver. For instance, if your car gets drowned while being parked in the basement, you can inform the insurance company directly and send it to a garage or service centre.
But suppose you tried to start your car after the incident; the vehicle engine may go to hydrostatic lock. In such a scenario, the insurance company will not cover the failure of the engine as it will be assumed as consequential damage as a result of some intentional action.
What Kind Of Car Insurance Coverage Must Car Owners Opt For?
While considering car insurance coverage, it is essential to select the types that will best suit the needs and offer adequate protection. Here are some important kinds of car insurance coverage that you can opt for:
Liability Coverage:
This is mandatory coverage in most places which helps cover all the costs if the owner is at fault in a mishap that results in injuries and property damages to others. It involves two components, property damage liability, and bodily injury liability.
Zero Depreciation:
Most people are concerned with what is zero depreciation in car insurance. Zero depreciation cover, also mentioned to add Bumper-to-Bumper depreciation or Nil drop, is an add-on or rider offered in the policies of car insurance to offer enhanced coverage for the vehicle that has been insured. Under this coverage, the insurance company waives off the factor concerning depreciation on certain parts of the car during a settlement claim. This insurance cover proves beneficial for new cars or cars that age young.
Collision Coverage:
This type of coverage helps pay for the damage repairs. To the owner’s vehicle in case of a collision with another vehicle. For high-valued or new vehicles, this type of coverage is helpful.
Comprehensive Coverage:
This is also referred to as other than collision coverage, and it protects against any damage to the car caused by non-collision events like theft, natural disaster, flood, and vandalism, among many more. If you reside in an area prone to any of the above-mentioned issues, comprehensive coverage may be useful.
Conclusion:
To sum up, the type of insurance you must opt for will depend on your individual circumstances, risk tolerance, and budget. Consider your car’s value, your driving habits, and the potential risks you face for determining the most appropriate coverage that would cater to your specific needs.
