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How does Car Insurance Benefit an Owner During Floods?

By Juhi Walia
17 August 2022, 2:23 PM

Car insurance is very crucial as well as obligatory for every owner. It covers mishaps, theft, natural disaster, etc., that occur to and damage the vehicle. Car insurance policies protect against damages caused by floods, even though not every car insurance offers this facility. There are mainly two types of car insurance policies in India, but a comprehensive insurance policy can cover the damages due to floods. 

Floods always cause extensive damage to the vehicle, resulting in heavy repairing bills and a load on the owner's pocket. Thus, it is beneficial for you if you extend the coverage of your car insurance policy before any crisis. Comprehensive car insurance and additional covers always reduce the burden on the policyholder, as the insurer pays out the repair cost. Apart from covering all-natural disasters, a comprehensive car insurance policy also fulfills the requirements of the law as it covers the liability of third-party car insurance

How Can Car Insurance Help You with Flood Losses? 

Comprehensive car insurance is the best car insurance as it offers the perks of both types of insurance policy. It is not a mandatory plan; still, it fulfills the law and allows wider coverage. It lends a policyholder financial aid against the damages caused by floods or other unexpected risks.

With this insurance, the car insurance company pays the cost incurred on repairing your car's damages caused by the flood. It will help you by allowing the protection against major losses and depreciation, wear and tear of parts, engine damage, and electronic damage due to flood. 

What to Consider While Buying Car Insurance Covering Flood?

When buying new car insurance online, remember that comprehensive car insurance offers protection against floods. However, it does not cover losses of the gearbox or engine. Thus, you must consider the following add-ons while buying an insurance policy.  

Hydrostatic Lock Coverage 

When you opt for this feature in your car insurance, it will pay for the damage or loss that arises from replacing or repairing engine parts due to water ingression inside the car engine and hydrostatic lock. 

Zero Depreciation Cover

Zero dep car insurance is one of the most beneficial add-on covers in comprehensive car insurance because it will not make you pay the percentage amount on the depreciable parts, and you will not need to bear any expense.  

Consumables Cover 

In consumable car insurance add-ons, the insurer allows the protection against the expense of replacing consumable material like gearbox, lubricants, grease, nuts, bolts, etc., due to natural calamities and makes you free from such expenses. 

Key Replacement Cover 

When floods affect your car's lock or key, this add-on cover will offer financial stability against repairing or replacing these items. 

Roadside Assistance 

With roadside assistance car insurance add-on cover, you will get towing assistance when an unexpected situation arises. When a car breaks down due to a natural calamity, the insurer will tow your vehicle to the nearest service center to undertake the necessary repair. Also, insurers provide alternative transportation to the vehicle owner. 

Steps to File a Claim Against Flood Damages

Now that you know the benefits and other tips regarding car insurance which allow protection against flood, you must also know about the claims procedure. The following steps will help you to file a claim against flood damage: 

Step 1: Get in touch with your insurance provider via their car insurance claim settlement helpline or customer care. 

Step 2: Tell them the details of the damage due to the flood, your car, and your policy; after that, the executive will give you a Claim Registration Number. 

Step 3: Remember, if you're settling a claim, then do not make any repairs by yourself before the company service staff comes. The insurance provider will take your car to the nearest garage to examine the issue.   

Step 4: After the approval of the claim, the workshop staff will do the necessary repairs. However, if your vehicle ends up in the network garage, you do not need to spend any penny. If the workshop staff cannot fix the issue, you can take your car to another garage and claim compensation against the original bills. 


If you live in an area with high flood risk, you must always be prepared with your car insurance policy covering flood-affected damages. A car insurance policy can save you from undesirable situations and allow you countless benefits.

To seek the best car insurance in India, you must visit Paytm Insurance. You can find various car insurance companies at Paytm Insurance and get the best deals. They are one of the top aggregators which allow quick payment of insurance premiums via a flexible mode of transaction.   

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1. Does car insurance cover water loss?

Yes, but not every car insurance covers water loss. If you live in a city prone to flooding, you must buy car insurance that allows an add-on cover for flood disasters. 

2. How does a flood affect a car?

Floods can ruin the mechanical system and damage the car's lubricants, gearbox, upholstery, and electronics. However, when people buy car insurance with special add-on covers, they can get financial help to repair and replace these damaged parts.  

3. Which car insurance covers flood damage?

Comprehensive car insurance allows wider coverage and helps to cover the damages to your vehicle due to a flood. 

4. Will flood claims impact the NCB?

Yes, when you claim for a flood or another natural disaster under the comprehensive policy, your NCB (No Claim Bonus) will be affected. 

5. Does an insurance premium increase after claiming for flood damage?

No, your car insurance premium does not increase after claiming flood damage. However, you may annul your accumulated NCB on your premium renewal. 

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