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Car flood insurance: Does car insurance cover flood damage?

Team AckoNov 11, 2021

Each year we witness flash floods and heavy rainfall in several parts of India. But while the news usually centres around the damage it causes to houses; flooding can also cause severe damage to cars. If a flood damages your car, you will need to contact your insurer (in this case ACKO) to see if they can cover the cost to repair the vehicle. Here’s all you need to know about car flood insurance and how to claim against car insurance for flood damage.

Insurance Claims for Flood Damaged Cars

Car flood insurance: Does car insurance cover flood damage?

Whether or not your car insurance covers flood damage depends upon the insurance plan you have purchased. Flood damage is only covered if you have comprehensive coverage, which is optional and not mandatory like Third-party insurance. The Comprehensive Car Insurance Policy covers damages to your car caused by natural calamities such as floods, earthquakes, cyclones, etc. It also covers damages due to accidents, fire, man-made calamities, and theft. 

It is always a good idea to consider the extent of insurance coverage you require before you are subjected to something like flood damage. Flood damage can cause severe damages and result in the reduction of the car value. It can lead to expensive repairs and, in some cases, even a total loss (damaged beyond repair). While the Comprehensive Car Insurance Policy may cost you more, it could end up saving you a lot of money during such unexpected losses.  

Types of flood damage

Here are the main types of damages caused by a flood to your vehicle. 

  • Engine damage: Water seeping into the car engine caused by a flood can cause partial or total damage to the engine’s internal parts.

  • Gearbox damage: Water ingression in the gearbox can cause the unit to malfunction or could be completely unusable.

  • Electric and electronic damage: Water can cause damages to electrical and electronic functions. It can cause a short circuit to the electronic or electrical components, or the warning lights on the dashboard could malfunction.

  • Upholstery damage: The interiors could be damaged due to the dampness caused by the water ingression. This includes the carpet, seats and other soft furnishings.

Which car insurance covers flood damage?

Flooding can occur unexpectedly, and it is vital that you have the right insurance coverage for your car in case of flood damage. Fortunately, car insurance does cover flood damage. But, for that, you need to buy a Comprehensive Insurance plan. This is the only option to ensure that you are compensated for damage or total loss caused by floodwater.  

You must also select Comprehensive Insurance if you live in an area that is prone to flooding. Since Comprehensive Car Insurance Plan is optional, it is not an automatic part of your car insurance policy. Instead, you should opt for the plan. Since it is not mandatory, it is recommended that you opt for this plan for broader insurance coverage. 

Comprehensive Insurance not only protects you financially against floods but also other natural calamities, along with coverage against man-made disasters, accidental damages, fire or explosion, theft and third-party liabilities. 

You also have the option to include add-on covers such as the Engine Protection cover, Zero Depreciation cover, etc., to extend the base plan’s coverage even further. You can avail of these benefits through our online portal along with an online car insurance renewal option.

Best car insurance add-ons to protect against flood damage

The Comprehensive Insurance Policy is the perfect insurance coverage for your vehicle, especially if it is damaged due to a flood. However, this is a base plan, and it does not provide coverage for certain damages or losses. 

To extend the base plan, you can include various add-on covers along with Comprehensive Insurance. Car insurance add-ons are additional covers that provide financial support against specific damages or losses incurred by your vehicle.

While the Comprehensive Insurance does cover you against flood damage, it also does not cover damages to your engine or gearbox. For that, you can consider including some of the below add-ons to strengthen your policy further.

  • Engine Protection Cover: The car engine is susceptible to damages due to non-usage or due to flood water ingression. Comprehensive Insurance does not cover damages to your car engine; however, you get financial coverage for repairs or replacement of damaged engine parts with this add-on.

  • No Claim Bonus (NCB) Protection Cover: When you file a claim during the policy period, you lose out on the NCB. However, the NCB Protection Cover keeps the discount intact even if you file a claim. You get to enjoy a discount of up to 50% (if you don’t claim for five consecutive years) even if you raise a claim.

  • Return to Invoice Cover: In case your car is damaged beyond repair caused by flooding or in case it is stolen, with the Return to Invoice Cover, you can claim the purchase price or the car’s invoice value that includes registration cost and road tax as well as per policy terms.

  • Zero Depreciation Cover: Over a period of time, car parts depreciate due to wear and tear, and the car value decreases accordingly. When you raise a claim, the insurer pays the depreciated value of the parts and not the entire value. However, with this add-on, the depreciation is not considered while settling the claim, resulting in receiving the total value of car repairs.

  • Key Replacement Cover: Modern car keys are sophisticated and can cost a lot of money in case of repairs or replacement. In case your car key or the lockset is damaged due to flooding, the add-on will cover the cost of replacement or repairs of the lockset.

  • Consumables Cover: The cost of replacing consumable items such as lubricants, gearbox and engine oil, nuts and bolts, grease, etc., are not covered under the base plan. With this add-on, you are protected against expenses incurred on consumables during an accident or natural calamities such as floods.

  • Roadside Assistance Cover: With this add-on, you get 24x7 emergency roadside assistance, including towing services, if your car is stranded due to floods. You also enjoy other benefits such as fuel fill, minor repairs, flat tyre service, etc.

Steps to register an insurance claim for flood-damaged cars 

Follow the below steps to raise an insurance claim for flood-damaged cars.

  • Step 1: Inform ACKO immediately. You can call or write to us, or you can visit our website or mobile app to inform us about the damages to your car and understand the claim process.

  • Step 2: Try to gather as much evidence as possible. Click pictures or shoot videos of the damaged car.

  • Step 3: Gather all the required information such as the Registration Certificate (RC) of the car, Driving License (DL) of the owner-driver, Policy Document (soft copy), and documents pertaining to the evidence. 

  • Step 4: Access your ACKO account through our website or mobile app and raise the claim for the damages by answering a few questions and uploading the soft copy of the required documents to register your flooded car insurance claim.  

Our support team will get in touch with you and help you with the procedure to settle the claim.

Tips to follow when your car is submerged in a flood or water

  • If your car is submerged in water, don’t switch on the ignition or attempt to start the car by push-starting it.

  • Disconnect the battery and tow the car to the garage.

  • Do not attempt to start the car even if the water has receded.

  • Check your car brakes for their functionality as they tend to be affected when water enters the brake discs, lines, or pads.

Steps to overcome flood damage to cars

Flash floods can occur unannounced, and you may be caught unaware of them during such situations. Damages to your car are sometimes inevitable during floods. However, you can take some precautions to reduce the impact or avoid damage to your vehicle. Here are some vital tips to overcome flood damage to cars.

  • Park your car on a higher ground: By parking your vehicle on higher ground, you reduce the risk of water entering your car which can cause damages to the interiors, engine, electrical and mechanical parts.

  • Roll up the windows: Ensure you pull up all the windows of the car. Any gap in the window would allow water to enter the inside of your car. Water can damage the upholstery and electronic components of your car.

  • Disconnect your battery: If possible, disconnect the battery to avoid accidental short circuits if the water enters the engine bay and may damage the electrical components.

Frequently asked questions

Here are some of the common questions about car flood insurance.

Does car insurance pay for a flooded car?

Car insurance covers damages or losses incurred by the insured car due to floods only if you have purchased the Comprehensive Car Insurance Policy. The Third-party Car Insurance Policy does not cover damages or losses incurred by your vehicle.

Does car insurance premium increase after a flood damage claim?

When you raise a claim during the policy period, you lose out on the NCB discount. Hence, the premium is higher than it would have been if you did not raise a claim. However, you can purchase the NCB Protection Cover to protect your discount even if you file a claim.

Does car insurance cover water damage to the engine?

In most cases, your insurer will cover the cost of minor damages to the engine and does not cover damages in case of mechanical failure or due to normal wear and tear. However, you can choose the Engine Protection Cover Add-on which will compensate you for the replacement or repair of your engine and its parts.

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