Car Insurance for Hurricanes and Floods: Are You Covered?

The National Insurance Crime Bureau says more than 637,000 vehicles were damaged in Hurricanes Harvey and Irma. Many of them had to be auctioned off or scrapped. Heavy rains and storm surges can damage cars to the point of a total loss. If you own a car in Hawaii, it’s important to know whether you have car insurance for hurricanes and floods.

How Water Destroys Cars

Consumer Reports says thousands of cars are damaged or destroyed by floods each year. When cars are flooded, the electronics, lubricants and mechanical systems can be severely damaged. In some cases, critical systems like airbag controllers are damaged, but the problems aren’t always immediately apparent.

With electric vehicles, the hidden dangers can be even worse. According to E&E News, firefighters near Naples, Florida, had to put out six electric vehicle fires in the days after Hurricane Ian made landfall. Lithium batteries that are exposed to salt water can catch fire, but the fire may not start until a while after the battery dries, creating an unpredictable hazard.

To be safe, if your car floods, it needs to be thoroughly inspected by a mechanic before you drive it. Don’t try to start it yourself, as doing so could result in more damage. Most likely, your car will need significant repairs. It may even be a total loss.

Does Auto Insurance Cover Hurricane and Flood Damage?

Whether or not your auto insurance covers hurricane or flood damage to your car will depend on the type of coverage you have.

In Hawaii, you are required to carry auto insurance on any car that you own. At a minimum, you must have $20,000 per person/$40,000 per accident in bodily injury liability, $10,000 per occurrence in property damage liability, and $10,000 per personal in personal injury protection (PIP) benefits. Other types of auto insurance, including uninsured and underinsured motorist coverage and collision and comprehensive insurance, are recommended but not mandatory.

Flood and storm damage is covered under comprehensive auto insurance. If you only maintain the minimum insurance required under Hawaii law, you do not have comprehensive insurance, so you will not have coverage for car damage caused by a flood or hurricane. However, if you have comprehensive insurance, you should be covered.

Lenders typically require comprehensive and collision insurance, so if you are financing your car, you likely have this protection. Check your policy to verify.

What About the Belongings in Your Car?

If you have comprehensive auto insurance, your car is covered against hurricane and flood damage, but your personal belongings are not. The good news is that these items are typically covered under homeowners and renters insurance.

However, your policy may have a per-item sublimit. For example, even if your primary policy limit is much higher, your policy may only pay up to $1,500 for a single personal item. If you have items that are worth more in your car, you may not be adequately covered with a standard insurance policy. See your policy for details and consider whether you need additional coverage.

Are You Ready for Hurricane Season?

Hurricane season is underway. Don’t wait until a storm is approaching – by then, it is typically too late to secure insurance. Check your policies now and make sure you have adequate protection in place. An insurance agent can help you review your coverage. Find an agent.