How Is Car Insurance Beneficial During Natural Disasters?
Does Car Insurance Policy Cover Natural Disaster?
The damage caused by natural disasters is covered under the own-damage component of a car insurance plan. Thus, your car shall be covered against natural disasters automatically if you opt for a comprehensive car insurance plan or a standalone own-damage car insurance plan. However, you will not be able to avail this benefit if you buy a third-party car insurance policy.
Benefits of Car Insurance During Natural Disasters
Having car insurance coverage during natural disasters offers several benefits:
- Comprehensive coverage: Car insurance with comprehensive coverage provides protection against natural disasters such as floods, storms, earthquakes, and hurricanes. It covers damages caused to your vehicle due to these events.
- Financial safety net: Car insurance ensures financial protection against the extensive repair costs that result from natural disaster damages. It helps minimize the financial burden on the policyholder by covering repairs or providing compensation for total loss.
- Peace of mind: Knowing that you are covered against natural disasters brings peace of mind. Even if your car sustains damages during a catastrophic event, you can rely on your insurance policy to handle the repair costs.
- Prompt claim settlements: Insurance companies are experienced in handling claims during natural disasters. They generally have swift processes and teams in place to assess damages and settle claims quickly, helping you get back on the road sooner.
What To Do If Your Car Gets Damaged In A Natural Calamity?
If your car has undergone damages in a natural disaster, you should do the below-mentioned things once the environment around you is safe:
- Take photos of the damages of your car from all angles
- Take a note of the timeline of the natural disaster, including the time and date when it hit your area and damaged your car
- Gather evidence, for instance, news articles in regards to the natural disaster occurrence in your area
- File a car insurance claim with your car insurance company
- Do not move the car from the spot unless the assessor sent by your insurer examines the vehicle
- Do not fix the damages of your car until your insurer approves it
Tips To Raise A Car Insurance Claim For Natural Disasters Damages
If your car has gone through damages because of a natural calamity, you can file a claim under your comprehensive insurance. Mentioned below are the steps to register a claim car insurance:
- Contact the claim support team and notify them about the damages caused to your car because of the natural calamity
- The claim support team will assign an surveyor to examine the damages to your car
- Surveyor will submit the survey report to the insurer for claim approval
- Send your car for repair to a garage
- Submit all the documents necessary so that the insurer can process the claim
- In case of a network garage, the repair bill will be paid by your insurer directly
- In case of a non-network garage, you will have to shell out the repair bill and submit the bill and the payment receipts to your car insurer
- The insurer will confirm the documents and you get the claim amount
Documents Required to Raise a Car Insurance Claim for Natural Disaster Damages
- Copy of the insurance policy
- Claim form
- Proof of ownership
- Photos or videos of the damages
- Police report (if applicable)
- Repair estimates
- Proof of identity and address
Add-On Covers For Policyholders Living In A Natural Disaster Prone Place
If you stay in a disaster-prone place, your car is at the threat of getting spoiled constantly. Recurrent damages can damage certain parts of your car gradually, which may not be covered under the basic comprehensive insurance policy. Fortunately, the car insurance companies come with a range of add-on covers that offer coverage for damages which are otherwise not covered under a comprehensive insurance policy. Some of the common add-on covers are as follows:
- Zero Depreciation Cover
It protects car from any depreciation and assists obtain an IDV (Insured Declared Value) equal to the present market value of your vehicle.
- Daily Allowance
It provides a daily travel allowance to the car owner if the car is getting repaired at a garage for the natural disaster damages.
- Engine Protector Cover
It indemnifies any damages or loss caused to the car’s engine due to a natural calamity.
Conclusion
All comprehensive insurance plans cover car damages caused because of the natural calamities occurrence. However, you can enhance the coverage of your car insurance policy by buying relevant add-on covers.
FAQs
- Why is car insurance beneficial during natural disasters?
Car insurance offers financial protection by covering damages caused to your vehicle during natural disasters. It helps minimize repair costs and provides a safety net for policyholders.
- Does car insurance cover all types of natural disasters?
Car insurance with comprehensive coverage typically covers a wide range of natural disasters, including floods, storms, earthquakes, hurricanes, and more. It is important to check your policy for the specific types of disasters covered.
- What if my car is completely destroyed in a natural disaster?
In the event of a total loss due to a natural disaster, car insurance can provide compensation based on your policy's terms. The insurance company will assess the value of your vehicle and offer a settlement accordingly.
- Can I choose the repair shop for my damaged car?
Some insurance policies may allow you to choose the repair shop, while others have a network of authorized workshops or garages. It is advisable to check your policy terms or consult your insurance provider for clarification.
- How long does it take for the insurance company to settle a claim for natural disaster damages?
The claim settlement process for natural disaster damages varies depending on the insurance company and the specific circumstances. However, many insurance providers strive to settle claims promptly, especially during times of natural disasters.
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