Car Insurance Policy: Does insurance cover cars submerged in rain and floods? Heavy rains and floods are distressing vehicle owners, as many low-lying areas are completely flooded.
Vehicles parked in underground parking or on the streets are also submerged in flood water, while some cars are being washed away.
In such cases, owners wonder if their insurance will cover their flooded cars. Many questions arise, such as when the insurance will cover the vehicle and what steps to take to make a claim.
An insurance claim can be made for cars submerged in rainwater and floods. However, the coverage depends on the type of insurance taken. For instance, if you only have third-party insurance, the damage to your car may not be covered.
Even with comprehensive insurance, damage to critical parts like the engine and gearbox due to water submersion may only be covered if you have additional protections like engine protection and zero depreciation add-ons.
If you want coverage for items not included in your comprehensive insurance, you must purchase add-ons. Different types of add-ons are available in the insurance market and the premium cost increases with the number of add-ons chosen.
For instance, the engine protection add-on is essential for claiming an insurance settlement for the engine in the event of natural calamities like heavy rains and floods causing the car to be submerged in water.
Zero Depreciation Add-on: Zero depreciation means that in an unexpected accident or any other problem, the insurance claim is calculated based on the car’s depreciated value.
Regular insurance covers only 50 percent of the depreciated value, and the car owner must bear the remaining 50 percent. However, with the Zero Depreciation Add-on, insurance companies will cover up to 95 percent of the car repair cost, regardless of the car’s depreciation value.
The remaining 5 percent is charged to customers as salvage charges, which are costs for replacing spare parts. Zero depreciation only applies to plastic and fiber parts of the car. If you want to cover the entire vehicle, consider the Engine Protection Add-on.
Zero depreciation is provided for varying durations. Typically, this add-on is offered for five years from the date of car registration, but some insurance companies, due to competition in the market, offer it for up to ten years.
Additionally, after the initial five years, some companies may provide an option to add zero depreciation if there are no claims on the vehicle until the sixth year.
Another beneficial insurance cover is the Return to Invoice Cover, which provides up to 100 percent refund of the amount paid for the car, including the ex-showroom price and life tax, in case of a claim.
This cover applies for up to three years from the date of car registration and requires strict verification before accepting a claim. If the vehicle is involved in an accident within the first three years, the return-to-invoice cover will no longer be applicable.
Understanding the various types of car insurance and avoiding common mistakes when taking out a policy is crucial. This knowledge can help you make informed decisions, choose the right coverage, and avoid potential pitfalls.
Some types of insurance, such as comprehensive cover and “Return to Invoice Cover,” have higher premiums because they offer more benefits. Additional features included with comprehensive cover also increase the premium.
When taking out car insurance, it’s important to remember the car’s value in order to pay a lower premium, as this could lead to undervaluing your car. Remember that the car’s value is considered when making an insurance claim after an accident.
Certain risks, such as the condition of the car and the year it was purchased, can affect insurance costs. Discuss these risks in detail with agents before finalizing your car insurance policy to ensure you choose the right insurance for your needs and circumstances.