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Does Car Insurance Cover Flood Damage?

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If you’re a vehicle owner, you may be curious about whether or not your car insurance will cover damage to your vehicle in the event of a flood. While the majority of states in the U.S. mandate that a vehicle be covered by automobile insurance, the type of coverage that’s mandated does not typically cover flood damage. In most states, the mandatory coverage is liability coverage, or the amount of money that covers you for bodily injury and property damages in the event of an accident.

While the specific amount of required liability insurance varies by state, the state of Arizona, for example, requires a minimum of $15,000 bodily injury liability per person, $30,000 bodily injury liability per accident, and $10,000 in property damage liability. Something that the state does not require, however, is comprehensive insurance. If your car has sustained damage in a flood, comprehensive insurance is the type of insurance that would provide you with compensation for damages.

What is comprehensive insurance?

Comprehensive insurance is an optional type of insurance that covers damages to your vehicle if something happens other than an car accident, such as a fire, flood, hail storm, theft, or vandalism. Unlike other types of car insurance where the amount you pay monthly is dependent upon the amount of coverage you purchase, your costs for comprehensive insurance are determined by your chosen deductible. A higher deductible means that you’ll have lower monthly payments, and a lower deductible means that your monthly payments will be higher.

Another type of optional insurance coverage is collision coverage. Unlike liability coverage, which covers the costs of damages to another vehicle/person that the policy holder causes, collision insurance specifically covers the policy holder’s vehicle in the event of a collision caused by the policy holder. This coverage still applies in adverse weather conditions.

hurricane sandy flooding

How much does comprehensive car insurance cover?

Comprehensive car insurance is designed to provide coverage in an amount that is equal to the actual cash value (market value) of your car. So, if your car is worth $10,000, then your coverage amount for comprehensive car insurance is $10,000. If the damage your car sustains exceeds its actual value, then your insurance company should pay you the sum of the car’s actual cash value in order to help you replace the vehicle.

Check With Your Insurance Provider

Whether or not your insurance policy will coverage damage to your vehicle caused by a flood is entirely dependent upon your individual policy. If you’ve purchased comprehensive car insurance, then the damage should be covered assuming that the damage can be repaired. However, if you don’t have comprehensive insurance coverage, then it’s unlikely that your minimum insurance coverage will cove flood damage.
Purchasing comprehensive car insurance is a good idea for almost everyone. For more questions about comprehensive car insurance and what it covers, consult with an insurance professional and get quotes for coverage.

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Most Popular Auto Insurance Discounts

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There is no way around paying your monthly insurance premiums, but if you know the right questions to ask—you may be able to save a significant amount of money. Here’s ten auto insurance discounts you want to know about.

#1. Bundle Discounts

If you purchase your auto, life, home, renters, boat, or motorcycle insurance coverage from the same insurance provider—you are likely to receive a bundle discount. Even if you only require 2 types of insurance, or insure more than one car the bundle discount often applies. Check with your insurer and prospective insurers to see what bundle discounts they offer.

#2. Car Alarm Discounts

Since having a car alarm installed in your vehicle drastically reduces your odds of theft, many insurance providers will offer a discount. Theft would otherwise have to be covered under a comprehensive claim.

collision warning brake support

#3. Vehicle Safety Equipment

If your car has the most current safety equipment such as anti-lock brakes, active head restraints, daylight running lights, rear view camera, theft recovery system, or a good safety rating—you are likely to receive an additional discount.

#4. Customer Loyalty

Insurance companies want to keep you on-board, so many offer a customer loyalty discount after a designated number of years with them.

#5. Good Driving Record

Insurance is about risk and if you can demonstrate a safe driving record, many insurers will reward you. Newer drivers often pay more for insurance, but after 5 or more years of good driving history—many insurance companies will offer a good driver’s discount. Some insurers such as Allstate and Nationwide offer a diminishing deductible, in which a drivers deductible costs can be reduced after a period of safe driving.

#6. Low-Mileage

If you have a car or vehicle that you only drive seasonally, or if you only drive your car on the weekends—you may be eligible for a low-mileage discount. This insurance is often used for second cars, sports cars, motorcycles, and classic cars.

defensive driving course

#7. Defensive Driving Course

Insurance companies like to thank drivers for investing their time in defensive driving courses to become a safer driver, and will often lower your premium once you submit your certificate of completion.

#8. Teacher Discounts

To ease the financial burden for teachers, many insurance companies offer a teacher discount. This is a nice way to say thanks to educators and reach out to them as customers.

#9. Military Discounts

As a thank you for service, many insurance companies offer a military discount to active duty and retired military members—and their spouse. Some insurers such as USAA, only offer coverage to active military, veterans, and their families.

#10. Good Student

If you have a high school-aged driver who is receiving car insurance for the first time, they may qualify for a discount if they maintain a “B” average, or participate in community service.

If you have already secured your auto insurance, and have not inquired about these top auto insurance discounts above—give them a call today to see if you are eligible for any that may apply. Or enter your zip code to get free quotes from leading insurers and compare rates with the available discounts.

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Do You Need Insurance on a Seasonal Car?

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If you own a convertible, classic car, motorcycle, or other vehicle that is unused for lengthy periods—you may be wondering if you need to maintain year-round insurance. The information below will help you to understand your options, as well as the risks associated with maintaining coverage only during your primary driving season.

Consider The Risks Of A Parked Vehicle

Although your car or motorcycle will be parked during the off-season, there are still a number of incidents that can occur—which would require coverage. This includes a tree falling on your car, theft, vandalism, or fire.

These types of losses would fall under ‘comprehensive’ coverage. If your car or motorcycle is not insured, you will have to take the loss—and pay for these unpredictable incidents out of pocket.

1973 MG MGB

Cost Is Built Into Motorcycle Insurance Prices

Depending on the state you live in, the off-season is often built into the cost of motorcycle insurance. For example, if you live in a state that has weather conducive to riding year-round, your motorcycle insurance is likely to be more expensive.

However, if you live in a state where there is a distinct winter—your insurance is likely to cost less, to account for the fact that you may only have a few good riding months per year.

What If You Have A Warm Winter Day?

If you decide to risk it, and cancel your insurance during the off-season—consider how you will respond if you have a warm winter day, or a special even that tempts you to bring your car or bike out for the day. Just keep in mind, that if you drive a vehicle that is not insured, you are breaking a state law, and putting yourself at risk for significant financial liability.

While you may feel as though paying for year-round coverage for a sports car, motorcycle, or classic car may be a waste of your money—you are sure to be at a much greater financial loss if you find yourself in need of insurance, but have temporarily canceled your coverage.

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How to Save Hundreds on Your Teen’s Auto Insurance

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It is an exciting time when a teenager obtains their driver’s license and starts driving. The ability to drive provides your teen with more responsibility, and can free up some of your time as a parent when it comes to driving them to and from their school, extracurricular and social activities. That being said, you may be stressed out about the additional monthly expense of your teen’s driving—but the tips below can help you to save hundreds per year on your teen’s auto insurance.

Tip #1 Shop Around

Even if you have been with the same auto insurance company for years, they may not offer the most competitive insurance prices when it comes to your teen’s insurance. For this reason shop around to a few different insurance companies to see who offers the most competitive rates. When looking into whether or not adding your teen to your insurance policy is the most cost-effective option, don’t forget to ask if there are any additional adult driving perks that you can take advantage of to lower your insurance—or consider whether or not raising your deductible will lower your monthly payments.

student driver

Tip #2 Ask About Teen Driver Discounts

Many insurance companies offered teen driver discounts for factors such as:

· Good Grades (B Average)
· Low-Mileage Teen Drivers
· Community Involvement
· The Successful Completion Of A Safe Driver’s Course

Tip #3 Rethink The Car Your Teen Drives

The car your teen will be driving plays a vital role in the cost of their insurance. Opt for a car that has the latest safety equipment, a strong consumer safety record—and one that is not a flashy sports car. If you will be buying your teen their own car to drive, also consider that while an older car may be less expensive to purchase, it may cost more to insure.

2003-2004 Toyota Corolla

Tip #4 Have Your Teen Get A Job

The fact of the matter is, there is only so much you can do to reduce the monthly expense of your teenager’s car insurance. To help ease the financial burden, let your teenager know that if they want to enjoy the privilege of driving, that they are going to have to contribute financially by getting a job to help pay for insurance and gas.

The four tips above will help you to save hundreds per year in your teen’s car insurance—which will ease the financial burden of having a new driver in the home.

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Most Expensive States For Auto Insurance in 2014

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Auto insurance is something we all need, but some people pay three times as much as others. Based on the state you are in, your auto insurance premiums could be significantly higher. Why do some states have higher car insurance rates from others? Here are some things you need to know about auto insurance, and which states in 2014 have the most expensive auto insurance policies.

1. Michigan

The state with the most expensive auto insurance policy in 2014 is Michigan. The annual premium in Michigan is $2,551. Michigan has had among the highest auto insurance rates in the country for years. Why are the rates higher in Michigan? There are comprehensive laws to protect drivers and passengers from personal injury. Michigan places a claim limit over $500,000 on personal injury claims.

The problem Michigan sees is many people choose to go without insurance due to the high claims. This makes the rates higher for people that end up in an accident with an uninsured motorist. Michigan also tends to have high vehicle crime rates further boosting rates for coverage.

Whitetail Doe

2. West Virginia

Coming in a close second to Michigan is West Virginia. Drivers here pay $2,518 per year for coverage. Why are their costs so high? Wildlife is a major concern in Virginia as drivers are more likely to hit a deer in this state than anywhere else in the United States, a surprising reason contributing to the higher rates. The wildlife risk boosts the costs of comprehensive insurance coverage.

3. Georgia

Individuals in Georgia see higher rates from other places in the nation. They pay $2,201 per year for an auto insurance policy. Higher accident rates have increased the policy amounts for Georgia residents.

4. Washington, D.C.

While it is technically a capital district and not a state, the typical policy in Washington, D.C. is $2,127 annually. The rates are higher due to auto theft as Washington, D.C. is a hotbed for stolen vehicles.

car crash

5. Rhode Island

Rounding out the top five most expensive states for auto insurance is Rhode Island. Drivers here pay an average of $2,020. Rhode Island is small but has a lot of congested areas, making it easy for traffic accidents to occur. Population density is a factor in auto insurance costs. Rhode Island also does not have a no-fault policy like other states to help reduce rates.

What can you do to keep your auto insurance rates low?

Your age, your driving record, and the type of car you drive all change your insurance rate. Some other things you can focus on when trying to reduce your insurance premium is to increase your deductible. A higher deductible means a lower monthly or annual payment. Reduce how much driving you do each year as this too will reduce how much you pay toward your auto insurance policy.

Another thing you can do is monitor your credit rating. Individuals with low credit scores have a harder time obtaining the insurance rates needed to cover their car. And of course, don’t forget to comparison shop for insurance and see which company can offer you the best combination of price, coverage, and service.

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