You may wonder what would happen to your car if a flood came through where it was parked and caused damage. Would you be on your own? Does car insurance cover flooding? Can you get flood insurance?
There are so many questions regarding car insurance for flooding. You’ll be glad to hear that it’s not terribly complicated, and you can get coverage for flooding. We’ll explain what kind of coverage you need, how much it costs, and how you can get the best price.
By the time you finish reading, you can decide what kind of car insurance coverage you need and be confident about your choice.
There are several different types of insurance for cars. Only one of them will provide coverage for flood damage, but we’ll go over the three most common types of car insurance coverage, so you understand what each provides.
Almost every state in the U.S. requires that you have liability insurance. And even in the few situations where it’s not required, most people choose to carry liability coverage anyway because it’s one of the best ways to protect your financial stability.
Liability coverage will offer coverage for the damage you do to other parties. It will cover medical bills and property damage up to the limits of your policy. It will not, however, provide any coverage for you or your car.
Collision insurance provides coverage for your own vehicle. It will pay for repairs to your car if it’s damaged in a crash. Typically, with collision coverage, you have a deductible that you’re responsible for paying. Your insurance provider should cover the cost of repairs minus the deductible amount.
The higher your deductible, the lower your monthly payments, but the more money you’re responsible for coming up with to repair your vehicle.
Collision insurance will not cover flood damage, though. The next type of insurance we’ll look at is the kind you’ll need for floods.
Comprehensive insurance covers acts of nature, and flooding falls into that category. A comprehensive policy also covers vandalism, theft, and running into wild animals, like deer.
Most people combine collision and comprehensive coverages, and that’s referred to as full coverage. You can choose a different deductible for comprehensive and collision. For example, you could have a $500 deductible for collision coverage and a $250 deductible for comprehensive. Or you could choose the same amount for both.
Unlike liability coverage, neither collision nor comprehensive coverage is required by law. If your vehicle is financed, your lender will require that you carry full coverage. If you fully own your car, you can choose to purchase comprehensive or collision coverage or both, but it’s not a requirement.
Comprehensive insurance coverage, which will cover damage or destruction from floods, will vary in cost depending on a variety of factors, including the following:
- Car – The more expensive your vehicle, and the more expensive the parts are, the higher insurance rates you’ll pay. Cheaper vehicles cost less to insure with comprehensive coverage.
- Claims history – If you’ve filed a comprehensive insurance claim in the past, your odds of filing another one are higher, so you’ll pay higher premiums. If you’ve never made a claim, you’ll pay less.
- Credit score – Your credit score doesn’t just affect your ability to get a loan. It also makes a significant difference in your car insurance rates. Some states don’t allow insurance companies to consider credit rating, but it’s common practice in most places.
- Location – Different regions and different parts of cities pose additional risks. If you live where there’s a high risk of flooding or an increased risk of hitting a deer, for example, you’ll pay higher premiums than someone with a lower risk.
There are many more factors that go into your car insurance rates, but these are the ones that matter most for comprehensive insurance.
Comprehensive car insurance is relatively inexpensive. While the price varies greatly depending on the factors we listed above and more, you can expect to pay somewhere in the range of $175 a year.
You may be able to pay less if you can take advantage of the following tips to help you save.
Everyone wants to learn more ways to save money. You can do several different things to save on car insurance premiums, and we’ll explore some of the most popular.
One of the easiest ways to save money on comprehensive insurance is to look for applicable discounts.
- Bundling – Many car insurance companies give customers a bundling discount when they also purchase home, boat, or another line of insurance through them.
- Good student – Teens pay the higher rates for car insurance, but if you have a B average or higher, you can probably earn a good student discount.
- Claims-free – If you haven’t made a comprehensive car insurance claim, you may be able to get a discount.
- Military – If you’ve served in the military, there’s a good chance you’ll save on car insurance.
Discounts are only one way to save. We’ll talk about another easy way to find lower rates.
Comparing quotes for car insurance will show you if you could save money by switching to a new provider. Many of your personal factors such as getting a new car, moving, and even getting older will change how car insurance companies calculate your risk.
Just remember that price isn’t the only thing you should consider. You should make sure any potential car insurance provider is reputable. If you need to make a claim, you need to count on your insurance company’s ability to pay that claim, so look for a company with solid financial standing.
You should also research how any potential insurance provider treats its customers. When you have to work through the claims process, your insurer should be easy to contact and respectful, and they should hold up their end of your policy.
Comprehensive insurance is a good buy. It’s one of the cheaper types of coverage available, and if you’re concerned about flood damage, it’s the coverage you need to have.
When you shop around and find a company where you can get lower rates, don’t forget to review their discounts to see how much more you can save.
About the Author:
Melanie Musson writes and researches for the car insurance comparison site, CarInsurance.org. She strives to help others secure financial stability for years to come through the purchase of appropriate insurance coverage.