Does your car insurance cover flood damages? Check eligibility here
31 Aug 2025

Heavy rainfall in India has led to flash floods and waterlogging in several cities. The worst-hit states are Maharashtra, Himachal Pradesh, Punjab, and Jammu & Kashmir.

These floods not only disrupt daily life but also cause extensive damage to vehicles.

As a car owner, it is crucial to check if your vehicle insurance policy covers repair costs for flood-related damages.

Third-party v/s comprehensive insurance
Insurance types

There are two main types of car insurance: third-party insurance and comprehensive coverage.

"Third-party insurance only covers legal liability claims, such as damage caused by your car to another individual or property," said Gaurav Arora from ICICI Lombard.

On the other hand, a comprehensive policy covers both third-party damages and those sustained by the insured vehicle itself.

Comprehensive policy covers flood damages
Policy

A comprehensive policy, especially when bundled with necessary add-ons, covers all kinds of damages to your insured car from natural disasters like floods.

Arora recommends considering add-ons such as roadside assistance and an engine protection cover.

The latter covers all repair and replacement costs of the car's engine and related parts in case of flood damage.

Claims can be rejected in some cases
Issues

Even with a comprehensive policy and engine protect add-on, claims can be rejected.

This usually happens if the car is stuck in a flood and the owner tries to switch it on, causing hydrostatic lock mode.

"In that case, a comprehensive policy will also not cover any damages because it is deemed that it has been done deliberately by the owner or driver," said Sandeep Saraf from Policybazaar.

What is hydrostatic lock mode?
Coverage details

Hydrostatic lock mode occurs when water enters the car's engine, potentially stalling it instantly and damaging internal parts.

"If you want coverage for damages caused by hydrostatic lock, then you must opt for the engine protection cover," Saraf said.

Another reason for claim rejection might be misdeclaration of no-claim bonus (NCB), which is a discount on your insurance premium for having claim-free years.

What to do if your car gets stuck in flood?
Claim process

If your car is submerged or you're driving through a flooded area, informing the insurer is the first step.

They can arrange roadside assistance and tow the car to the nearest workshop for a thorough checkup.

"Once the checkup is done and damages, if any are found and repaired, only then should you drive off," Arora said.

Roadside assistance is usually included in comprehensive insurance policies but can also be purchased as an add-on if not covered.