Does Car Insurance Cover Flood Damage? Unveiling the Hidden Protections in Your Policy

Does Car Insurance Cover Flood Damage?

If you possess comprehensive car insurance, it includes coverage for flood damage to your vehicle.

In the event of a flood, this type of insurance either covers the cost of repairs or provides compensation equivalent to the car’s actual cash value at the time of the flood, should the vehicle be deemed a total loss.

Given the frequency of flooding incidents, it is advisable to be aware of the necessary steps to take if your car is ever affected by a flood and to understand the crucial role that insurance plays in addressing the aftermath.

Does Car Insurance Cover Flood Damage?
Unravel the mystery of auto insurance and flooding incidents. Explore how comprehensive coverage safeguards your vehicle, the role of deductibles, and the bundled benefits of collision coverage. Get insights into costs and considerations for optimal protection. PHOTO: Freepik


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Does Auto Insurance Cover Flooding?

Auto insurance does protect against flood damage, given that you have comprehensive coverage.

This holds regardless of the auto insurance company you select, whether it’s GEICO, Allstate, Progressive, or others.

The key requirement is that you must possess comprehensive coverage before your vehicle experiences water damage.

Comprehensive Insurance Claims Have A Deductible

Comprehensive insurance provides coverage for various issues affecting your car, including flood damage, car fires, vandalism, hail damage, and theft.

When filing a claim under comprehensive insurance, you will encounter a deductible, which is the amount subtracted from your insurance claim payout.

For instance, with a $500 deductible, your insurance company will issue a check for flood-related repairs minus the $500 deductible.

If you’re uncertain about the deductible specified in your comprehensive insurance, refer to the declarations page of your insurance policy.

According to the National Association of Insurance Commissioners, the average annual cost of comprehensive car insurance is approximately $168.

Collision Coverage Packaged With Comprehensive Coverage

If you possess comprehensive coverage, there’s a high likelihood that you also hold collision coverage.

Auto insurance providers often bundle these two types of coverage, working in tandem to address repairs to your vehicle.

They serve as supplements to your mandatory liability coverage, which is a legal requirement in almost all states and only covers injuries you may cause to others and damage to their property.

Collision insurance steps in to cover the expenses associated with damage to your car in case of collisions with objects or other vehicles, irrespective of who is at fault in the accident.

The National Association of Insurance Commissioners reports an average annual cost of approximately $378 for collision insurance.

If you’re financing or leasing your vehicle, your auto lender or leasing company probably mandates both comprehensive and collision insurance.

Upon settling the auto loan, you have the option to determine whether to continue carrying these coverages or if it’s the right time to forego comprehensive and collision coverage.

What Does Comprehensive Auto Insurance Cover?

Comprehensive insurance, often combined with collision coverage, is an elective option crafted to safeguard your vehicle.

In contrast to liability coverage, which shields against the harm you may inflict on other drivers and their vehicles, comprehensive coverage ensures protection for your vehicle from:

  • Theft.
  • Vandalism.
  • Damage caused by animals.
  • Hail
  • Lightning.
  • Water and flood damage.

When Can You Add Comprehensive Coverage Before A Flood?

Several auto insurance companies implement “binding restrictions” when a significant weather event is imminent.

As a storm approaches, these insurers impose limitations on initiating new insurance policies or making changes to existing ones in the affected geographic area.

The aim is to mitigate their exposure to the potential high costs associated with claims resulting from severe weather conditions.

While binding restrictions may hinder the addition of comprehensive auto coverage before a storm hits, having comprehensive coverage in place before the restrictions take effect should provide coverage.

It’s important to note that the timing of when a car insurance company lifts its binding restrictions varies.

To determine the availability of coverage after a flood, it is advisable to contact your insurance company directly and inquire about the specific status of the binding restrictions and when or if they have been lifted.

How Much Does Comprehensive Coverage Cost?

Determining the cost of collision and comprehensive coverage is a complex task as it is closely tied to the value of your vehicle.

The more valuable your vehicle, the higher the expense for your insurance company to replace it, leading to an increased premium.

Provided below are approximations of the average expenses associated with comprehensive coverage for commonly owned vehicles.

Outlined in the tables below are the average rates for comprehensive auto insurance, considering both a $500 deductible and a $1,000 deductible.

  • Full Coverage With A $1,000 Deductible

Company Avg. Annual Premium
USAA $1,189
Nationwide $1,343
GEICO $1,348
State Farm $1,457
Farmers $1,616
Progressive $1,668
Allstate $2,118
Updated: 12/26/23.


  • Full Coverage With A $500 Deductible

Company Avg. Annual Premium
USAA $1,365
Nationwide $1,476
GEICO $1,542
State Farm $1,569
Farmers $1,786
Progressive $1,886
Allstate $2,413
Updated: 12/26/23.


We incorporated collision and comprehensive coverage together due to their common association.

Opting for both collision and comprehensive insurance for a 2012 Honda Accord would result in a twofold increase in the yearly premium.

Considering the cost associated with this combined coverage, it is advisable to evaluate whether such a level of coverage is essential.

Other Types Of Car Insurance

Here are three additional crucial vehicle coverage options.

  • Liability Insurance

Most states mandate the inclusion of liability insurance in auto insurance policies, and it usually constitutes the highest cost component.

This coverage comes into play when you are deemed responsible for an auto accident, covering expenses related to injuries or property damage sustained by others.

Additionally, liability insurance addresses legal expenses in the event of a lawsuit arising from an auto accident for which you are held accountable.

  • Rental Reimbursement

Transportation expense coverage, commonly referred to as rental reimbursement, provides compensation for rental cars and public transportation costs incurred while your vehicle is undergoing repairs for a covered insurance claim.

Unlike other coverages, rental reimbursement does not have a deductible.

It is an optional feature that can be added to a policy for an extra cost.

  • Gap Insurance

Gap insurance provides coverage for the disparity between the outstanding balance on your loan and the assessed value of your vehicle in the event of a total loss or theft.

For example, if your car is declared a total loss due to a flood, gap insurance bridges the gap between the actual cash value of the car and the remaining loan or lease amount.

Let’s consider a scenario where you have a $25,000 loan, but your car’s value is $22,000.

In the event of a total loss, where you still owe $3,000 to your lender, gap insurance steps in to cover that outstanding amount.

Additionally, gap insurance is applicable if your vehicle is stolen and not recovered.

To be eligible for gap insurance, it is a prerequisite to have both comprehensive and collision insurance for your car.

Do You Need Comprehensive Coverage?

Collision and comprehensive insurance are typically mandatory when leasing or financing a vehicle.

This ensures that the leasing company or lien holder can safeguard their investment.

In the case of outright vehicle ownership, it is advisable to have collision and comprehensive coverage, especially if the car’s value exceeds $4,000.

Without these coverages, you forfeit the ability to receive a claim payout in the event of damage or total loss to your car.

When comprehensive coverage is a good idea:

  • If you have a loan on the vehicle.
  • If you are leasing a vehicle.
  • If you own a vehicle worth more than $4,000.

The necessity for extensive coverage is also influenced by your geographical location.

If you reside in a coastal area or an area prone to flooding, it’s advisable to contemplate selecting comprehensive auto insurance.

Does Car Insurance Cover Driving Through A Large Puddle or Flooded Streets?

Submerged roads can lead to diverse vehicular damages, ranging from aesthetic concerns such as rust and fog lights to the development of mold within your vehicle’s interior.

Should your car become immobile in floodwater or sustain harm while traversing a flooded street or sizable puddle, comprehensive coverage could cover the repair costs, with your deductible being the only exception.

Furthermore, even if your parked vehicle is affected by flooding on a street, the resulting damage may still qualify for coverage.

Does Car Insurance Cover Water Damage To An Engine?

Excessive water exposure can result in harm to critical components such as your car’s engine, electrical system, and transmission.

Submersion of your vehicle’s engine in floodwaters increases the risk of it being deemed a total loss.

In such cases, your comprehensive auto insurance coverage might cover the costs of repairing or replacing the vehicle, with the deductible being subtracted from the overall coverage.

What Doesn’t Comprehensive Insurance Cover?

Comprehensive insurance excludes coverage for replacing or repairing non-permanently installed components like GPS systems or removable radios in the vehicle.

While it provides compensation for damages resulting from severe floods, it does not extend coverage to damages caused by neglect.

Negligent actions such as leaving car windows or the sunroof open during adverse weather conditions, like a rainstorm or blizzard, are not covered.

Additionally, the policy does not cover incidents where you collide with another vehicle, damage your car, or cause property damage to personal belongings.

What Damage Can A Flood Do To My Car?

Apart from the risk of your car being swept away, the extent of damage inflicted by a flood on a vehicle is contingent upon the entry points and the volume of water infiltrating the car.

Even a minimal amount of water can lead to significant problems if left unaddressed.

These issues encompass:

  • Moldy interior.
  • Foggy lights.
  • Air bag failure.
  • Transmission failure.
  • Corrosion from saltwater.
  • Warped brakes.
  • Computer malfunction.
  • Faulty electrical components.
  • Rusty body.

AutoZone experts advise against attempting to start the vehicle if there are suspicions that the engine was submerged.

Additionally, it is suggested to document the maximum level of water exposure the vehicle endured before allowing it to dry thoroughly.

This proactive measure can enhance the likelihood of securing a just settlement when filing a car flood insurance claim.

How To File Flood Claims With An Insurance Carrier?

An infographic on how to file flood claims with an Insurance Carrier
An infographic on how to file flood claims with an Insurance Carrier.


Insurance providers do not compensate for flood-related damages until a formal claim is submitted.

Initiate the claims procedure promptly, particularly following a natural disaster, to expedite the resolution.

Comprehensive coverage is essential to receive compensation for a vehicle damaged by a flood.

To initiate a car insurance claim, adhere to the following steps:

  • Gather Information

Collect the necessary information that the insurance company requires before submitting your claim.

Your agent will likely seek information regarding the extent of the damage, the circumstances surrounding it, and pertinent details about your deductible and coverage within your insurance policy.

  • Take Photos

Capture comprehensive photos and videos depicting the damage, and promptly share them with both the claims adjuster and your insurance provider.

Consider presenting these visuals to the mechanic responsible for repairing your vehicle as well.

  • Call Your Insurance Agent

Report the damage to your insurance agent promptly upon evaluating your vehicle.

The faster you initiate the claim, the sooner you can proceed with the repairs or replacement of your vehicle.

  • Wait For The Adjuster

Upon filing the claim, an adjuster assesses whether the current market value of the vehicle is lower than the expenses required for its repair.

If this is the case, your insurance will compensate you for the actual cash value of the car, deducting your deductible.

The actual cash value is determined by considering factors such as the car’s age, condition, and mileage.

The insurance company is obligated to reimburse you for the assessed value of your vehicle at the moment of the damage, rather than the value of a brand-new or upgraded model.


The claims adjuster might require some time to evaluate your vehicle.

During this waiting period, you can use towels, shop vacs, fans, or dehumidifiers to dry the vehicle and minimize additional damage.

If feasible, keep the windows open to facilitate ventilation and prevent odors.

How Long Do Flood Claims Take Compared To Other Auto Claims?

Flood claims present distinct challenges compared to other types of claims, often resulting in a complete loss of the affected vehicle.

Moreover, floods can simultaneously impact a large number of clients for an insurance provider, leading to prolonged processing times in comparison to claims for accidents or property damage.

Various factors, including the specific nature of the claim, state regulations, and the insurance company’s policies, contribute to the extended duration of flood claims.

To expedite the claims procedure, it is advisable to maintain comprehensive records of all communication with the insurance company, actively submit requested documents, and meticulously review all paperwork, particularly when signing documents.

It is important to note that while comprehensive claims may have a lesser impact on insurance rates, filing a claim typically increases premiums.

It is a common misconception to assume that residing outside a flood zone or away from bodies of water eliminates the risk of flooding.

According to the National Flood Insurance Program, over 20% of claims originate from individuals residing in areas deemed not at high risk for floods.

Floods, being the nation’s most prevalent and destructive natural disaster, can affect residents in all 50 states.

Ensuring adequate protection is essential to avoid bearing the financial burden of repair costs personally.

Beware Of Flooded Cars For Sale

Cars affected by floodwaters often find their way into the market.

In 2020, Carfax reported that 446,836 cars damaged by floods were present on U.S. roads.

When an insurance company deems a vehicle irreparable due to flood damage and settles a claim, it issues a salvage title.

This designation prohibits the car from being operational until it undergoes repairs, passes an inspection, and receives a new title reflecting its significant damage and subsequent reconstruction.

Typically, salvage-title cars are auctioned off to junkyards for spare parts or to dealers who specialize in rebuilding them.

However, these vehicles can also be sold to private buyers, provided the title discloses the flood damage.

Differences in state regulations and laws regarding salvage titles mean that some states are more lenient than others in their classification of such cars.

Consequently, flood-damaged vehicles may change hands multiple times, crossing state lines and ending up with titles that omit the damage history.

Unscrupulous owners may clean up flooded cars and sell them on the private market without disclosing the damage to unsuspecting buyers.

Vehicles subjected to flooding can experience internal deterioration over time, leading to potential failures in mechanical, electrical, and safety systems.

To avoid purchasing such cars, it is advisable to steer clear of vehicles with salvage or rebuilt titles.

Detecting flood damage involves paying attention to signs such as a musty odor, damp or mismatched carpets, rust around doors and pedals, rust inside the hood, and mud under the seats.

To ensure the history of a vehicle is transparent, potential buyers are encouraged to check the vehicle history report through reputable companies like Carfax, use the National Insurance Crime Bureau’s free VINCheck, or consult the National Motor Vehicle Title Information System website.

Does Car Insurance Cover Water Damage From Rain?

Comprehensive coverage encompasses a wide range of scenarios involving rain damage, except when the harm is attributable to your behavior or neglect.

For instance, in the case of car insurance, it would not extend coverage for rain damage if you left your windows down before a storm, leading to water damage to your vehicle’s interior.

Similarly, your car insurance would not provide coverage for water damage occurring gradually due to inadequate maintenance of your vehicle.

Does Car Insurance Cover Flood Damage In Florida?

Recently, Hurricane Ian wreaked havoc in Florida, submerging numerous vehicles and homes in water, and causing significant damage to both lives and the economy.

Residing in flood-prone areas makes it crucial to ensure the protection of not only your home but also your car.

A basic car insurance policy that includes liability insurance offers minimal coverage and does not protect against flood damage.

On the contrary, opting for a comprehensive coverage plan becomes essential, as it protects against floods, hail, and heavy rains, and even safeguards against damage caused by storm-related incidents such as falling tree branches.

Additionally, it compensates for damages resulting from other natural calamities and man-made disasters.

The comprehensive insurance coverage also includes protection for the actual cash value in the event of theft or vandalism.

However, it does not cover accidents, necessitating the addition of collision coverage.

It’s important to note that the Comprehensive Car Insurance Plan is not mandatory but optional.

It is not automatically included in standard car insurance policies in Florida, allowing individuals to choose different coverage options for broader protection.

Another consideration is that insurers may restrict policy changes when a major storm is imminent, preventing the addition of comprehensive coverage just before the storm hits.

Frequently Asked Questions (FAQs)

  • Why Don’t Many Drivers Have Comprehensive Coverage?

Only around 77% of drivers possess comprehensive insurance coverage, according to Statista.

The first quarter of 2019 saw a total of 276 million registered vehicles, meaning that approximately 63.5 million vehicles lack comprehensive coverage.

Because comprehensive coverage is not mandated by states as part of the minimum required coverage and is not automatically included in insurance policies, many individuals are unaware of its absence.

Even if they are aware, some choose not to obtain it due to the additional cost it adds to their monthly premiums, deeming it unworthy.

Nevertheless, comprehensive insurance protects your vehicle not only in the case of a flood but also in instances such as theft or damage caused by a fallen tree.

For those financing or leasing their vehicles, comprehensive coverage serves as collateral for loans and is a requirement imposed by lenders.

Some individuals opt to forego this coverage after repaying their loans to save on costs.

  • What Are the Restrictions for Getting Comprehensive Coverage?

There are certain limitations associated with obtaining comprehensive coverage for your vehicle.

Many individuals are unaware that insurance companies impose restrictions on modifications to existing policies and the issuance of new ones, whether for car insurance or homeowner’s insurance, in a specific geographical area just before a significant weather event.

This measure is taken to prevent fraudulent claims and to mitigate exposure and risk in the face of substantial payouts resulting from violent and severe storms leading to flooding.

When the National Hurricane Center issues reports of tropical-force winds, either from a tropical storm or an ensuing hurricane, insurers limit the ability to purchase comprehensive insurance coverage for those residing in the path of the natural disaster.

The decision to lift these imposed restrictions is at the discretion of the insurer.

If you already possess comprehensive coverage before the restrictions take effect, your coverage should remain in effect.

  • What Happens If a Car with Comprehensive Coverage Is Totaled?

Should your insurance company determine that the expense of repairing your vehicle exceeds its value, they will declare it as totaled.

In such cases, rather than covering the repair costs, they will provide you with a check equivalent to the actual cash value of the car, minus your deductible.

If you opt to proceed with repairs, the vehicle’s title must be salvaged to enable continued driving.

Consumer Reports notes that numerous flood-damaged cars sustain significant harm, leading to their classification as totaled due to safety concerns.

However, you can utilize the compensation from your insurance provider to acquire a replacement vehicle.

  • What is the purpose of a reducing deductible?

A diminishing deductible is a type of auto insurance coverage that lowers your deductible when you demonstrate safe driving habits.

As you steer clear of accidents and uphold a spotless driving record, the deductible on your policy gradually decreases by a specified amount.

  • How do you know if you have water in your engine?

Recognizing the symptoms of a flooded engine is relatively straightforward.

The initial indication is often a distinct odor of gasoline.

Additionally, you might notice unusual whirring sounds during attempts to start the engine.

Another potential sign is the engine starting but subsequently stalling shortly thereafter.


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