Does Car Insurance Cover Flood Damage?
Flooding is the most common natural disaster in the US, and more and more people are exposed to its hazards every year. If your car is damaged in a flood, you can rely on comprehensive insurance to cover the repair costs.
When does auto insurance cover flooding?
To be covered for flood damage, you need to have comprehensive auto insurance. In most cases, the coverage is not mandatory, but if your car is less than 10 years old and/or worth more than $3,000, it is recommended that you carry it and its counterpart, collision insurance. Although the coverage can be pricey, it will shield your car from many of life's uncontrollable events — like heavy rains, flooding, vandalism and broken windshields.
After paying the deductible, your comprehensive policy would cover the repair costs or reimburse you for the actual cash value of the car, if the insurance adjusters say it's a total loss. A total loss determination depends on how deep the water surrounding your car is and what the water affected.
Flood level doesn't reach the car's floor
If rains cause water levels to rise, but not higher than the floor of your car, you might avoid most damages or just have minor repairs that are covered after your deductible.
Partial submersion
If the floodwater line goes up to the tires or the dashboard, your engine, braking and other electrical systems might be compromised. Progressive recommends checking your oil level reading, and State Farm advises drivers to look for water droplets on the oil dipstick. If the reading is too high, or you see droplets, chances are there's water in the engine, and your engine cylinders may be broken.
The damage here will be more extensive. You will still be covered after your deductible, but you run the risk of a total loss, where the cost of repairs is higher than the actual cash value the insurer would reimburse you for your car. In this case, they'll pay you the actual cash value, and you'll give them your car.
An exception to keep in mind from Allstate and the National Association of Insurance Commissioners (NAIC): Comprehensive does not pay for things (such as removable radios and GPS units) that aren't permanently installed in your car. There's also a difference between flooding from a natural disaster — such as 2017's Hurricane Harvey in Texas and Louisiana or 2012's Superstorm Sandy in New York and New Jersey – and neglecting your car by failing to close the sunroof during normal rain. Comprehensive insurance is meant to cover damage from heavy flooding in your area but would most likely not cover the second.
Lastly, floods from salt water are a lot more damaging to the car and introduce the risk of corrosion on top of the flood damage described above.
What to do if you don't have comprehensive coverage
Unfortunately, there is not much you can do if you don't have comprehensive insurance in a flood event. The liability portion of your auto insurance policy is only meant to cover damages you cause to other drivers, not your own car.
If you have a homeowners or renters insurance policy, those never cover damage from flooding — even damage to the home. Even if you have a flood insurance policy for your car, you could only use it for any personal property that was destroyed in your car — not the car itself — as a result of a flood. If you fear your car being damaged in a flood, we highly recommend adding comprehensive insurance to your policy.
How to file a car insurance claim after a flood
Filing a claim for flood damage is the same as filing a claim for any other type of vehicle damage. You can call up your company's claim center or file a claim online, if allowed.
We recommend you do this as soon as possible for two reasons: The longer you wait, the more damage the water can inflict on your vehicle. Second, major floods tend to slow insurance companies from dealing with every claim as fast as they normally would. If there was a major flood in your area, it is likely there are other drivers filing similar claims, and the insurance companies only have a finite number of claims adjusters to evaluate each case. The sooner you file the claim, the more likely yours will be one of the first cases processed.
In the meantime, we recommend taking as many photos and videos of your car from different angles as you can, to record the flood damage. Until your auto insurer can send over a claims adjuster, dry out the car as much as you can. Here's what State Farm advises car owners to do to minimize the damage:
- Do not start your car, as potential water damage in your engine will make it worse.
- Check with a mechanic whether the oil, transmission fluid and lube need to be drained.
- Get a towing service to move your car to higher ground, or wait until the water recedes.
- Remove all water: Vacuum or mop up the remaining water pooled in your car, remove the seats and cushions, if possible, and use fans and dehumidifiers.
Total loss determination
When the claims adjuster comes, they will try to determine if the car is a total loss. A car is considered a total loss when the cost to repair the car is greater than its value. Just over half of states have a threshold that needs to be surpassed for a car to be a total loss. In Oklahoma, for example, the repair costs only have to be greater than 60% of the value of the car for it to be considered totaled. The other half use what is called the total loss formula, where if the sum of the cost of repairs plus the salvage value of the car exceeds the car's value, then it is considered a total loss.
State | TLT/TLF
Alabama | 75%
Alaska | TLF
Arizona | TLF
Arkansas | 70%
California | TLF
Colorado | 100%
Connecticut | TLF
Delaware | TLF
Florida | 80%
Georgia | TLF
Hawaii | TLF
Idaho | TLF
Illinois | TLF
Indiana | 70%
Iowa | 75%
Kansas | 75%
Kentucky | 75%
Louisiana | TLF
Maine | 75%
Maryland | TLF
Massachusetts | 75%
Michigan | 70%
Minnesota | TLF
Mississippi | 80%
Missouri | TLF
Montana | 75%
Nebraska | 65%
Nevada | 50%
New Hampshire | 75%
New Jersey | TLF
New Mexico | TLF
New York | 75%
North Carolina | 75%
North Dakota | 75%
Ohio | TLF
Oklahoma | 60%
Oregon | 80%
Pennsylvania | TLF
Rhode Island | TLF
South Carolina | 75%
South Dakota | TLF
Tennessee | 75%
Texas | 100%
Utah | TLF
Vermont | TLF
Virginia | 75%
Washington | TLF
West Virginia | 75%
Wisconsin | 70%
Wyoming | 75% |
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Declaring a total loss on the car is not an ideal situation for most drivers, unfortunately. Auto insurance policies only pay you the actual cash value of the vehicle.
The actual cash value is what you paid for it, minus how much it has depreciated since. For example, if you bought a Jeep Wrangler for $40,000 in 2018, and in 2023 it only has a value of $20,000, should a flood (or anything else) total it, you would only be paid the $20,000.
Gap insurance
If you lease or finance your car, the actual cash value would not be enough to cover the cost you still owe to the lessor or financier. We recommend all drivers who lease or finance to get gap insurance, at least for the first few years of the financing agreement. Cars, especially luxury types, depreciate quickly once they leave the lot. A flood plus no gap insurance could end up leaving you in several thousand dollars of debt.