Does Car Insurance Cover Flood Damage?

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If you’ve got comprehensive insurance for your car the flood damage to your car is protected. Comprehensive insurance covers repairs or covers the price of the vehicle at the time of the flood if the car is damaged to the point of total loss.

Flooding is more prevalent than you’d consider, so it’s important to be aware of what you should do if your vehicle is impacted by the middle of a flood and what role insurance is after the event.

Comprehensive Insurance Claims Have a Deductible

Complete insurance protects you from flood damage to your vehicle as well as other issues like car fire hail damage, vandalism, and theft of your car.

A comprehensive insurance claim has a deduction. The deductible will be that you subtract from your claim. If, for instance, your deductible is $500 the insurance company will issue an amount for flood repair for your vehicle less the $500 deductible.

Are you unsure of the deductible you pay in your insurance policy? Look up the declarations page on the insurance policy.

The cost of comprehensive car insurance is around $168 annually According to the National Association of Insurance Commissioners.

Collision Protection Package that includes Comprehensive Protection

If you have comprehensive coverage, likely, you’ve also got collision insurance well. Both types of insurance are usually packaged by insurance companies for autos and can be used together to cover the repairs you make to your vehicle. They complement your liability coverage that is required in most states to be legally able to drive and cover only injuries that you cause to other motorists and damages you cause in their personal property.

Collision insurance is a way to cover the damage to your vehicle if your vehicle collides with an object or another vehicle regardless of the person the cause of the accident. The cost of collision insurance is approximately $378 annually as per the National Association of Insurance Commissioners.

If you lease or finance your vehicle, your lender of the lease or auto will likely require that you carry collision and comprehensive insurance. After you’ve paid off the automobile loan, the owner can decide if you’d like to carry these policies or decide if it’s the right time to eliminate collision and comprehensive coverage.

Other Types of Car Insurance

There are three additional types of essential coverage for cars.

Liability insurance must be purchased in the majority of states and is usually the highest-priced component of an insurance policy for autos. Liability insurance covers you if you’re at fault in an auto accident that causes injuries to other people or damage to the property of another. Liability insurance will also cover legal expenses if you are accused of causing an auto crash.

Rent reimbursement is often referred to in the form of transportation expense insurance. It covers reimbursement for the cost of rental vehicles as well as public transportation costs when your vehicle is in repair for an insurance claim that is covered. Rental reimbursement insurance does not come with cost-sharing. It’s an option and can be included in a policy at an additional fee.

GAP insurance is insurance that pays the gap between what you have to pay on the loan as well as the actual value of your stolen or totaled vehicle. If your car is damaged during flooding, gap insurance will pay the difference between the car’s cash value and the amount you owe on the vehicle or lease. Let’s say you’ve got an outstanding loan of $25,000 and your car’s value is $22,000. If your car was to be totaled you’d still owe the lender $3000. Gap insurance covers the $3,000 and you don’t need to.

Gap insurance is also used if your vehicle is taken away and it is not found.

To be eligible for the insurance gap, you’ll require collision insurance as well as comprehensive insurance on your vehicle.

Beware of Flooded Cars for Sale

Damaged cars from floods frequently end up on the market. According to Carfax, 446,836 damaged cars due to flooding were on U.S. roads in 2020.

If an insurance firm totals the vehicle following an incident of flood the company will issue a salvage title. The car won’t be driven until it is repaired, has passed an inspection, and then is renewed. A new title would show that the car sustained significant damage and was rebuilt.

The salvage title vehicles are generally auctioned off to junkyards to purchase parts or parts to dealerships that repair them. However, they can be offered to private buyers, if the title proves the flood damage.

The laws and regulations of states regarding titles vary in some states, with certain states being more accommodating than others concerning their definitions of salvage-titled vehicles. This means that flood-damaged vehicles get retitled as a result of several sales, typically across state lines, and end with a title that does not disclose the extent of the damage.

Cars that are flooded are also cleaned up and offered through the market for sale by unscrupulous sellers who fail to inform potential buyers of the extent of the damage.

Cars that have been damaged by flooding could rot interior, often slowly as well as having mechanical, electrical, and security systems that may fail at any moment Therefore, it is logical to stay clear of buying one. This means avoiding vehicles that have salvage or restored titles.

But how do you know when a car is submerged? The smell of musty carpet that is damp or unmatched and doors, rust on the door and pedals, and even inside the hood, and dirt beneath the seating are indications that you’re in an unwaterlogged vehicle.

It is recommended to verify the report on the car’s history by contacting a business like Carfax or using VINCheck, a service offered by the National Insurance Crime Bureau. VINCheck report, which provides the car’s history once you input its VIN.