What Type of Car Insurance Can Protect Against Flood Damages?

While the monsoon season has brought relief from the heat in northern India, it has also introduced significant challenges. On June 28, Delhi experienced its highest single-day rainfall in 88 years, leading to flooding in various parts of the city, especially in low-lying areas. This caused traffic jams, power outages, and waterlogged streets, which also affected car parks and submerged two-wheelers.

When water enters a car, it can damage the engine, electrical systems, and interiors, leading to costly repairs. Although there are many vehicle insurance plans and add-ons available, it’s crucial to choose the right car insurance that covers flood-related damages.

How Do Floods Damage Cars?

Floodwater can cause severe issues like engine failure, damage to electrical and electronic systems, rust, and unpleasant odors. It can also affect the gearbox. Water entering a parked car can ruin the interior, including seats and panels. Some problems are noticeable immediately, while others may appear over time.

Do All Car Insurance Policies Cover Flood Damages?

According to T A Ramalingam, Chief Technical Officer at Bajaj Allianz General Insurance, a comprehensive policy covers accidents due to fire, flood, and theft. However, these policies consider the car’s age for depreciation. For plastic and rubber parts, a 50% depreciation applies, meaning only half of the repair cost is reimbursed, and the policyholder must cover the rest.

A standalone comprehensive car insurance policy might not cover all flood-related damages.

Can Insurance Companies Deny Flood Damage Claims?

Basic comprehensive car insurance covers flood-related damages, but insurance companies can refuse claims if the damage results from the driver’s intentional actions. For example, if your car is parked in a basement and gets flooded, you should report it to the insurance company and have it towed to a service center. However, if you try to start the car after it has been submerged, causing a hydrostatic lock, the insurance company may not cover the engine failure because it is considered consequential damage due to intentional action.

A hydrostatic lock happens when water enters a running engine, causing damage. If the engine is not running, water ingress may not cause damage, but it’s best to seek professional help before starting the engine.

What Types of Car Insurance Should You Consider?

With changing weather patterns, unplanned development, and poor drainage systems, many cities are unprepared for heavy rainfall and floods. When buying car insurance, consider these increasing instances of heavy downpours. Along with a standard comprehensive car insurance plan, consider add-ons like zero depreciation and engine protection cover.

Ramalingam advises customers not to start their engines in waterlogged areas. Starting the engine can cause water to enter and damage it. A standalone car insurance plan does not cover engine damage due to water ingress, but an add-on cover for engine failure can help claim significant repair expenses.

You can also opt for consumables cover, which protects against the cost of replacing engine parts, including oils and lubricants. Other useful add-ons include roadside assistance, key and lock cover, and loss of personal belongings.