Auto Insurance: Is Flooding Included in Your Policy?

By: Mike Silverstone, Car Insurance Analyst
CheaperCarInsurance.com

The next time there’s a flood in your area, you’ll wish you had flood auto insurance coverage. Unfortunately, most drivers don’t have this coverage, since floods are a relatively rare occurrence in most of the country.

Joel Ario, state Insurance Commissioner for Pennsylvania, is on a quest to make sure people realize that homeowner’s flood insurance is a good idea. Dozens of homes are damaged by rising waters each year and most homeowners don’t have insurance. For that matter, many don’t have flood insurance for their vehicles, either.

Cars and water don’t go well together. Many people have no idea whether or not their auto insurance covers flooding until water damage occurs. Prevention is the best medicine, as they say, and in the case of auto insurance, that’s particularly true. There’s nothing worse than discovering after the fact that your car wasn’t covered.

What You Need to Know About Floods

Flooding can be caused by any number of factors, usually a combination of inadequate drainage and excessive rainfall. However, in some cases, a river may overflow because of heavier than usual snow melts further upstream, something that is a frequent issue as the weather warms up in areas with snow or ice.

Chances are you worry first about your basement and carpet when you think of flooding, but vehicles are very much at risk, too. Consider the following damage that can occur when your vehicle is submerged in water.

• Mold from prolonged moisture
• Electrical issues
• Rust, particularly in the engine compartment
• Discoloration and staining of upholstery and carpet
• Brittle wiring
• Silt and mud inside the vehicle

Hundreds of thousands of cars are destroyed each year in floods, many of these caused by hurricanes or other types of storms. When those floods occur due to a storm, further damage can be wreaked upon your car. It may be tossed around or debris can slam into it, causing everything from superficial dents to serious destruction. Auto insurance is necessary in these cases, or you’ll be stuck with the full cost of repairs yourself, usually while paying for your house repairs, as well!

Should Flood Insurance Be Made Mandatory?

It might seem like common sense, but there are many people who don’t check to see exactly what their auto insurance covers, much less see if they can add flood insurance coverage to their regular payments. There are many people who feel that mandatory flood insurance for homeowners would be the best way to protect people and their houses. This could easily go for cars, as well.

With mandatory auto insurance, there would be no need to check what your policy covers, something that most drivers forget to do anyway! Since flood insurance is not usually a big cost, this wouldn’t be a big strain on the budget for the majority of car owners and could mean huge savings in the long run, particularly in high risk areas where flooding and storms are a big issue.

The benefits of mandatory flood auto insurance are many:

• Severe damages are covered
• Your vehicle is covered in storms, as well, where flooding occurs
• You can replace a severely damaged car

Floods can be devastating, but they are far worse if you lose all mobility. While auto insurance can help, you’ll be better off avoiding the damages in the first place. Experts recommend getting to higher ground, if possible, or evacuating the area before water destroys your car.

Common sense can help keep your vehicle intact, but having auto insurance with flood coverage is definitely the way to go. You can’t prevent everything, so make sure you’re covered.

Posted: March 16, 2010