Optional Portions of Auto Policy Now Covers Flood-Caused Damages


IMBR-00133487-001According to the Insurance Information Institute (III) drivers whose vehicles get caught in floodwater can file a claim with their auto insurer as long as they have collision and comprehensive coverage.

 Michael Burry, Vice President of Media Relations said that it is optional to avail an auto insurance according to the policy or depending on the state you are residing, for some may think that it may also increase the cost of insuring a car. However, one must consider also that it will also cost more to repair a vehicle soak in a flash flood especially when the damage is in the vehicle’s interior.

Based on compiled data of National Association of Insurance Commissioner (NAIC), seventy-six percent (76%) of insured drivers purchase comprehensive coverage aside from the liability insurance. Moreover, seventy-two percent (72%) buy collision coverage.

“You don’t need either collision or comprehensive coverage to drive legally, but both provide important financial protections and they might be required if you financed the purchase of the car through a bank or another financial institution,” Barry said.

Every year most of the states require you to purchase a minimum amount of liability coverage. It is important to have one for it provides protection against losses incurred during traffic accidents and any other liabilities that can be incurred during an accident.

Accidents often cost more than the minimum limits and chances are one will need more liability insurance more than the state requires. It should be compulsory to have vehicle insurance before using a vehicle on public roads. It should be insurance to both the car and the driver, however the degree of each may vary and also depends on what will the driver avail. Generally, the insurance industry and consumer groups recommend a minimum of $ 100,000 of bodily injury protection for every person and $300,000 in every accident.

These days, buying only the minimum amount of liability means you are likely to pay more out-of-pocket. Those cost that sometimes sudden are hard to handle for not all times we keep something for emergencies like this.

So do not wait for an accident to happen to you or any members of your family have insurance before or sooner when you have purchased a car or you will drive the car. Better prepared and safe than never. Don’t wait until it’s too late! Auto insurance is already a necessity. It is a legal requirement especially when you have a car.