What Drivers Need to Know About Flood-Hit Cars, According to Insurance Experts

With heavy rain and floods affecting large parts of eastern Australia, eric Insurance explains what drivers need to know when it comes to flood water damage and car insurance.

According to leading car and motorbike insurance specialist eric Insurance, while accidental flood water damage is covered by most Comprehensive Car Insurance policies, driving into flood water may be considered a reckless act by insurance providers. In some instances, claims for flood water damage may be refused. 

Victoria State Emergency Services (VICSES) advises that it only takes water 15cm deep with a flow speed of around 3.6km/h to float a small car, while a medium-sized car can be moved around by water around 30cm deep. As eric Insurance explains, it can be easy for motorists to misjudge the danger of driving into flood waters and wind up in a potentially disastrous situation.

Some Third Party Car Insurance policies may cover fire and theft but are unlikely to cover flood damage. eric Insurance says that cover for flood damage is usually only available with Comprehensive Car Insurance. However, not all Comprehensive Car Insurance policies will cover for flood water damage in all instances, so it's important to read the Product Disclosure Statement (PDS) that accompanies the policy to understand what is covered and what exclusions may apply.

Comprehensive Car Insurance policies that cover flood water damage will likely cover the cost of repairing or replacing the vehicle. eric Insurance suggests that before commissioning any repairs, it is vital to first contact the insurance provider as many cars that have been damaged by flood waters are likely to be written off. 

Modern vehicles can deal with a wide range of conditions, but if flood water has reached the lower levels of the doors before receding, it is likely that mechanical components could be ruined, including the engine, as well as electrical systems.

Australian-owned eric Insurance has more than 20 years' experience in the automotive insurance industry. To find out more about the best car insurance policy to suit an individual's circumstances or obtain a quote for car insurance online, contact eric Insurance.

Disclaimer: This article may contain general financial product advice that does not take into account your personal financial circumstance. Make sure you read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making any decisions about your insurance. For more information, call 1800 999 977.

Source: eric Insurance


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