Does Your Car Insurance Cover Flood Damage? What You Need To Know Before The Next Storm

Forbes

22-07-2025

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Flooding can wreck your car in minutes, and if you're not prepared, it might wreck your wallet just as fast. As extreme weather becomes more common across the U.S., more drivers are asking an important question: If my car gets caught in a flood, will my insurance cover it?
The answer depends on the kind of coverage you have. And if you only have basic liability coverage, you likely won't have protection against flood damage.
Does Your Car Insurance Cover Flood Damage?
In July, heavy rains led to severe flooding across parts of New York and New Jersey. Flooded streets and subway stations caused major disruptions throughout the region. If rising waters damaged your car, it could have suffered serious damage, from engine and electrical issues to soaked interiors.
Unfortunately, regarding flood damage, not all car insurance policies offer equal protection. If you want protection against floods, you need comprehensive coverage. This type of insurance typically covers fire, theft, vandalism and flooding. It's usually optional but included in many full coverage plans.
Liability insurance, which most states require, won't cover damage to your vehicle. It only pays for damage or injuries you cause to others. Collision coverage won't help either, as it only applies if you crash into another car or object.
So, if rising waters catch you off guard, comprehensive coverage is what you'll want to have on your side.
What's Covered Under Comprehensive Coverage?
If you have comprehensive coverage, your insurance may cover:
water damage to the engine or electrical systems
ruined upholstery or interior
mold or mildew caused by flooding
repairs—or even a complete replacement if the car is totaled
What's not covered? Your belongings inside the car. If a flood soaks your laptop or new handbag, this would fall under your renters' insurance or homeowners' insurance policy, if you have one.
What To Do If Your Car Gets Flooded
If a flood damages your car, here's what to do:
Don't try to start the vehicle. Turning on a flood-damaged car can worsen the damage. Take photos. Document the damage from every angle. Call your insurance company. File a claim as soon as possible. Wait for the adjuster. A claims representative will inspect the damage and help you figure out the next steps.
Depending on the extent of the flooding, your insurer will decide if the car is repairable or should be declared a total loss.
Is It Worth Adding Flood Coverage?
Adding comprehensive coverage is a smart move if you live in an area where storms, hurricanes or flash floods are common. It's not free, but it's usually affordable, often around $100 to $300 extra per year, depending on your car and where you live.
Here's something many drivers don't realize: You usually can't wait until the last minute to add flood coverage. Once a storm is named or on the radar, most insurance companies pause new policies or changes. If you're considering adding comprehensive coverage, don't wait for the clouds—get it sorted before the forecast turns.
Here are some of Forbes Advisor's picks of the best car insurance policies to choose from.
Bottom Line
Floods aren't just a coastal problem—they can hit almost anywhere, and your car is often one of the first things at risk. If you're unsure what your insurance covers, now's the time to look. Once the water starts rising, it's too late to make changes.