Hurricanes, Fires, and Floods: Does Car Insurance Cover Natural Disasters?

Last year was a rough period weather wise. The country was hit by several major natural disasters, including hurricanes, wildfires, and tornadoes. These events caused billions in damages, so reviewing your insurance policies is a good idea to ensure you have adequate protection.

Your car is an expensive item, and having the right coverage is key. So, does car insurance cover natural disasters? Only if you have comprehensive insurance, which compensates you for non-collision damages, including those linked to weather events.

Key takeaways

• Car insurance policies must have comprehensive insurance to cover natural disasters.
• Comprehensive insurance should typically cover damage from wind, flood and water, wildfires, and earthquakes.
• Natural disaster coverage through comprehensive insurance averages about $200 per year.

Does car insurance cover natural disasters?

This question is more complicated than it may appear. The answer? Maybe — it depends on the coverage you have.

While there is a range of coverage options offered by insurers, there are, in general, three main types of coverage.

• Liability: Liability protection pays for injuries or damages you cause to another person or their property.
• Collision: Collision insurance is for repairs to your own vehicle for damages that occur in a collision.
• Comprehensive: Comprehensive insurance is for non-collision damage, such as repairs to your vehicle after a hail storm or after a car is stolen. With comprehensive insurance, the maximum limit of coverage is the actual cash value of your car.

Drivers in most states are required by law to have liability insurance, but collision and comprehensive insurance are typically optional unless you have an auto loan or lease. If you do, you're required to have "full coverage," meaning a policy that combines all three types of insurance.

Comprehensive insurance is the type of coverage you need to protect your vehicle from natural disasters. If your car is damaged during a hurricane, fire, or earthquake, comprehensive insurance helps pay for the repairs (or replacement).

If your policy doesn't include comprehensive insurance, natural disasters aren't covered, and you're on the hook for your car's repairs yourself.

What else does comprehensive car insurance cover?

Comprehensive insurance pays for damages to your vehicle that occur outside of a collision. Besides weather-related issues, comprehensive insurance comes into play in the following events.

• Damage from hitting an animal, such as a deer
• Damage from arson or riots
• Theft
• Fallen objects, such as construction equipment or tree limbs
• Broken windshields

What natural disaster damage is covered by car insurance?

If a natural disaster affects your area, here is how different events can impact your car.

Wind damage

Storms, hurricanes, and tornadoes can cause substantial damage to your property and vehicle. Common car-related damages include smashed glass or dents from fallen trees and debris.

With comprehensive insurance, the insurance company will pay to replace your windshield or windows and repair the body of the car.

Flood and water damage

If your car is flooded or has water damage from a natural disaster, like a major hurricane, the cost of repairs can be significant. Water damage can produce mold, cause parts to rust, wreck electrical systems, and cause wires to deteriorate. Due to the cost of repairs, cars with significant water damage are often "totaled," or declared a complete loss.

Comprehensive insurance will cover the cost of repairs, or, if the car isn't repairable, its replacement.

Earthquake damage

Earthquake damage can entail anything from collapsed structures falling on your car to debris and fires. Whether your car is crushed or partially damaged, comprehensive insurance helps you get back behind the wheel.

Wildfire damage

Wildfires can destroy a car quickly. Even if the fire is contained, smoke can cause significant damage. Comprehensive insurance will help repair damaged parts or replace the car.

Filing a natural disaster insurance claim

To file a claim after a natural disaster, follow these steps.

1. Get photos or video of the damage

If it's safe, try and get photos or video of your vehicle, inside and out. Having video or photos of the car, what caused the damage, and the severity will help your claim.

2. Contact your insurer

Contact your insurer as soon as you can. Some companies allow you to submit a claim through their website or mobile app while others require you to call their claim phone line. In either case, your insurer will guide you through the process and necessary forms.

3. Do what you can to make your car safe from more harm

After speaking with your insurer, do what you can to prevent more damage. For example, if the windows were smashed, it may be a good idea to cover them with plastic tarps to prevent water from getting inside the car. When in doubt, ask your insurer if it's okay to take any temporary measures.

4. Wait for an adjuster (or bring the vehicle to a repair shop)

Next, the insurer will send an adjuster to look at the car and assess the damage. In some cases, the insurer will come to you. Or, if the car is drivable, you may bring it to a repair shop and the adjuster will review the car there. If possible, plan to meet the adjuster in person to review the damage and discuss what happened.

5. Keep good records

Throughout the claims process, keep good records. Make a note of every interaction you have with the insurance company and the repair shop. Write down the date, time, and name of each person you speak to. If there are any disputes, having good records can help you make your case.

6. Review the settlement

The insurance company will contact you to notify you of their decision regarding your claim. During that call, they'll tell you a dollar amount you'll receive, and they'll tell you how it will be paid out. In some cases, they'll pay the repair shop directly. If you prefer, you can opt to have the money sent to you.

If you disagree with the settlement amount, requesting additional estimates can be a wise decision.

FAQs

Bottom line

A natural disaster can be devastating for many reasons, but having the right car insurance can help mitigate the damage for some of your losses. If you have comprehensive car insurance, you can get help with the cost of repairs or even replace your vehicle, and it's typically a relatively cheap form of coverage, averaging around $200, according to the National Association of Insurance Commissioners.

To get a competitive price, compare quotes from several insurers. Requesting rates from the best car insurance companies is a great starting point, and it can help you save money.