Does Car Insurance Cover Natural Disasters?

No matter where you live and drive, your vehicle is likely to be subject to some type of weather event at some point in time. But whether that's hail, lightning, wildfire, or another element of nature, fortunately, your car insurance policy can cover you against the cost of physical damage and destruction. However, you'll need to ensure you're equipped with the right kind of coverage first.

Fortunately, a local independent insurance agent can help you get set up with all the car insurance you need. They'll help you add the coverage necessary to protect against losses due to natural disaster damage to your vehicle. But first, here's a closer look at how car insurance can cover natural disasters and the damage they cause. 

Table of Contents

Does Car Insurance Cover Natural Disasters?
How Do I Know If My Car Insurance Covers Natural Disasters?
How Much Damage from Natural Disasters Is Covered by My Car Insurance?
Why Work with an Independent Insurance Agent?

Does Car Insurance Cover Natural Disasters?

The answer to this depends on what kind of car insurance you have. If you have comprehensive coverage in your auto insurance policy, you'll have coverage for natural disasters. 

Comprehensive coverage protects you against losses stemming from physical damage to your car caused by natural disasters and "Acts of God" such as:

Comprehensive coverage can also reimburse you for theft or vandalism, and damage or destruction from riots and civil commotions. However, not everyone needs comprehensive coverage, depending on the age and value of their car. If you drive an older car that's only worth a couple of hundred dollars, you might decide this coverage isn't worth it. Ask your independent insurance agent if comprehensive coverage is right for you. 

How Do I Know If My Car Insurance Covers Natural Disasters?

First, it's helpful to understand the three main car insurance coverage types, which are liability, collision, and comprehensive. Each of these components covers different situations and losses.

• Liability insurance: Pays for costs related to personal property damage and bodily injuries you cause third parties with your vehicle. It can also reimburse you for the cost of lawsuits stemming from these incidents. 
• Collision insurance: Pays for damage to your car from a collision with another object, regardless of fault. 
• Comprehensive insurance: Pays for damage to your car due to a non-collision event, such as a flood or theft. 

If you have car insurance, you likely have at least liability insurance since it’s required by law in most states. But collision and comprehensive coverage are often optional, so your policy may not include them. Review the details of your personal auto policy documents to understand what type of coverage you have. 

If you have comprehensive coverage, then you’re covered for natural disasters. If not, it’s easy to work with an independent insurance agent and add that coverage to your policy if you want it.

How Much Damage from Natural Disasters Is Covered by My Car Insurance?

Whether your car is damaged by a wildfire, a flood, or a hailstorm, the amount of reimbursement you receive from your insurance company depends on the deductible you chose when you purchased your policy and the declared limit of your policy's comprehensive coverage, which is usually the actual cash value of your car. 

The deductible is the amount the insurance company requires you to pay out of your own pocket before you receive any reimbursement. For example, if the total damage to your vehicle is $1,000 and your deductible is $500, you'll pay $500, and your insurance company will pay the other $500 if your full claim is approved.

The coverage limit is simply the maximum the insurance company will reimburse you for an approved claim. For comprehensive coverage, which covers natural disasters, the limit is almost always the actual cash value of your car. This amount isn't what you paid for your vehicle, but rather the replacement cost minus depreciation, or the value your car loses each year due to age and wear and tear.

Overall, if you have comprehensive coverage, your car insurance can cover the cost to repair or replace your vehicle, minus the deductible, up to the policy limit. Your claim will have to be approved for you to receive compensation, of course. 

Further, you'll need to be covered by comprehensive insurance before a disaster occurs. So, if a wildfire causes serious damage to your vehicle, you can't add comprehensive coverage after the event and then get reimbursement. Your auto policy would have already needed to include this coverage for you to have a claim approved.

Why Work with an Independent Insurance Agent?

When you're ready to protect yourself against losses due to natural disaster damage to your vehicle, no one's better equipped to help than a local independent insurance agent. These agents are familiar with the best car insurance companies near you, so they know exactly where to find the quality, reliable coverage you need. 

Your agent can also shop and compare policies and rates for you to find the best deal. And down the road, your independent insurance agent will still be there to help you update your policy or even file car insurance claims for you.

FAQs About How Car Insurance Covers Natural Disasters