Does Car Insurance Cover Natural Disasters?

Car insurance only covers natural disasters if you have comprehensive car insurance. Specifically, coverage for natural disasters is known as “act of God” coverage in the insurance industry. Comprehensive coverage also covers damages to your car from other events, like collisions, auto burglary, and car vandalism.

First keep calm, then follow these steps:

1. Call emergency services. If there were any injuries, call 911. You’ll want to have a police report to file your claim, as it adds substantiated evidence.
2. Assess the damages. Inspect your car for damages and write down any you see.
3. Document the damages. Take pictures of the damages and note the exact date, time, and weather conditions in which they occurred.
4. File a claim. File an auto insurance claim with your provider using all the evidence you’ve collected. An insurance claim is how you’ll get reimbursed for your damages. File the claim as soon as possible, as claims could take a long time to be processed. Also, make sure you’re within your state’s statute of limitations for property damage claims. If you wait too long, your insurance provider doesn’t have to issue you a check.

5. Meet with an adjuster. An insurance adjuster will assess your damages, either through pictures or in person, and will determine your payout.
6. Repair or replace your car. Get your car repaired or, if it’s declared a total loss, replaced.

It’s important to be prepared with comprehensive coverage, as we can’t always prevent damage to our vehicles from natural disasters. If you don’t already have comprehensive coverage, here’s how to add it:

1. Get quotes. If you’re searching for car insurance, get quotes from multiple auto insurance companies to compare pricing. Even if you already have insurance, switching auto insurance providers could save you money.
2. Talk to an agent. Speak to either an insurance agent or a insurance broker about obtaining comprehensive coverage, along with your state’s minimum coverage. Not sure whether to use an agent or a broker? Compare the pros and cons of agents vs. brokers.
3. Choose your deductible. Your comprehensive coverage will come with an insurance deductible, which averages $500 but can range from $0 to $2,000. The way deductibles work is that you’ll be responsible to pay this fee before your insurance provider contributes to a claim, so ensure this money is available in case of an accident or damage occurs.
4. Choose your limit. Also choose a limit, which is the maximum amount your provider will pay for damage in a covered comprehensive claim. It could range from $10,000 to $100,000 or more, depending on your premium.
5. Pay your premiums. Pay your premiums to begin coverage on your policy’s effective date.

Comprehensive coverage is what you need to fix damages that natural disasters caused, but some people may opt out, as it’s not a requirement anywhere in the U.S.

Get comprehensive coverage if your car is …

• New
• In storage
• Broken down

Don’t get comprehensive coverage if your car is …

• Old

For older cars, the damages will most likely cost more than your vehicle’s actual market value (AMV), meaning the car will be declared a total loss. In this case, it makes sense to skip comprehensive coverage on your old car. However, in all other cases, comprehensive coverage is necessary, even if you’re not currently using the vehicle. For any new vehicle you plan to drive in the future, keep comprehensive coverage active.

Comprehensive coverage isn’t the only insurance that will compensate you for damages from a natural disaster. If it’s in your budget, we recommend these supplemental coverages:

Rental Car Coverage

If you are car-dependent and have no carpooling or public transportation options, you’ll want to add rental car coverage, which will pay for a rental car while your car is being repaired under a covered claim.

Windshield Coverage

Some comprehensive coverage includes coverage for glass, while windshield coverage is supplemental with others. Windshield coverage includes not only windshields, but sunroofs, rear, and side windows.

Medical Payments Coverage

Medical payments coverage is necessary if you become injured from a car accident and need to pay for rehabilitation treatment or hospital fees — especially if you don’t have health insurance or your health insurance has a high deductible. It would also cover lost wages or funeral costs.

Gap Coverage

Say the damage was so bad that your car was declared a total loss. In that case, you’d be reimbursed for your car’s AMV – its value if you sold it tomorrow. Your AMV will most likely be less than what you paid for the car originally due to depreciation. Gap coverage would ensure you get back what you still owe on the car, not its current worth.

Optional Basic Economic Loss (OBEL)

For the most protection, you can opt to add Optional Basic Economic Loss (OBEL) of $25,00 to $50,000, which you can apply to physical therapy, income loss and rehab, among other costs⁴.

Custom Equipment Coverage

Standard car insurance only applies to the car’s original equipment. If you added any electronics, navigations, or custom equipment, comprehensive coverage won’t reimburse you for it. Instead, you’ll need custom equipment coverage.

Whether you’re protecting your car from the next natural disaster or you just experienced damage, follow these steps to mitigate further damages:

1. Avoid trees and power lines. While you’re driving after a storm, avoid driving over road hazards like fallen power lines or trees.
2. Cover your car. Ideally, park your car in a garage or under a carport.
3. Fill your tank. Sometimes, natural disasters cause gas shortages or traffic, so fill your tank beforehand.
4. Make an emergency supply kit. In case you’re in the car during a natural disaster, make an emergency supply kit with the following items.
   • Booster cables
   • Flashlights
   • Matches
   • Shovel
   • Spare tire
   • Tire repair kit
   • Tools
   • Traction mats
5. Watch out for missing signs and broken traffic signals. After a storm, traffic lights may be broken and traffic signs may be missing, so take extra care when driving⁵. The last thing you want is a collision.

Unlike homeowners insurance, which typically excludes acts of God, car insurance covers acts of God under comprehensive coverage. Your state’s minimum coverage won’t include comprehensive coverage, so you won’t be insured for natural disasters if you only purchase the legal requirement. That’s why we recommend purchasing full coverage, which includes comprehensive coverage.