Does your car insurance covers flood damages?

Does your car insurance cover flood damages?

Since Singapore is a natural disaster-free country, most value-conscious drivers will only purchase the most basic and cheapest car insurance, also known as third-party insurance. However, due to climate change, the weather became increasingly erratic. Prolonged heavy rain has caused many canals and drains to exceed 90 percent of their capacity, which led to flash floods in many areas of Singapore. Your best defence against the rising tide is to purchase a comprehensive car insurance plan that covers flood damages.


Not all insurers cover flood damages

If you thought your insurer can save your soaked-up car, you’re wrong. While the majority of insurers offer flood damage coverage, some still don’t, find out from your insurers directly or read through your insurance policy.

Does your car insurance cover flood damages?

If you found out that your plan does not cover flood damage, you may want to consider switching to a different insurance company. However, please note that you may possibly lose your No Claim Bonus.


Factors to take note of when deciding if it’s worthwhile changing plans

1. Where do you usually park your car?

If your car is often parked at an indoor multi-story carpark of your HDB/condo or office building then it might not be worthwhile looking for a car insurance that covers flood damages. However, if you live in a landed area and your car is always parked outdoor or if you are located in areas with flash flood history, chances of getting affected are higher.


2. Car usage

If you depend on your car for your livelihood, your vehicle is more vulnerable and needs more protection. If you usually take public transport to work and only use the car on the weekends, it might not be worthwhile going through so much hassle.


So, does your car insurance covers flood damages? If not, remember to weigh out the pros and cons before making your choice!

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