The monsoon is back with a bang, providing relief to the people from the scorching heat. But the season brings with it a fair share of problems, particularly for vehicle owners. Heavy rainfall, flooding, freak accidents, and landslides can damage your vehicle and can burn a hole in your pockets during repairs.
Frightening videos and pictures of cars submerged due to the deluge or being swept away in overflowing rivers due to torrential rains are still fresh in our minds.
To ensure that you remain financially protected and do not break the bank while you undertake costly repairs to your car this monsoon, here’s an overview of what damages most comprehensive car insurance policies (third-party insurance policies will not cover any damage to your vehicle whatsoever) cover and what add-ons one can consider to keep your vehicle monsoon-ready:
ENGINE SEIZING DUE TO WATER ENTRY
This is typically referred to as a hydrostatic lock or hydrolock. Most comprehensive insurance policies do not cover hydrolock because it is often considered a result of negligent behaviour of the car user. For example, if you are trying to drive through a waterlogged street, this can result in water entering the engine, causing it to seize.
Repairing a seized engine is extremely costly, which is why most insurance companies offer add-on covers designed for such situations, often called engine protect or engine cover. If you are concerned about water-related damage to your car’s engine, especially during the monsoon season, it might be worth looking into such an add-on.
DAMAGE TO CAR BODY
A comprehensive car insurance typically covers damage to your car that results from acts of nature. This can include incidents like a tree or an electric pole falling on the car or potholes damaging your car’s suspension system. This coverage would typically pay for the necessary repairs or, in the event of a total loss, the car’s market value at the time of the loss.
But there’s a catch here. You will get 100 per cent of the claim for the damages and repairs to your car only if you opt for a zero depreciation add-on for your insurance policy,
Depreciation refers to the reduction in the value of an asset over time due to wear and tear. With zero depreciation insurance, the policyholder is entitled to receive the full cost of repair or replacement without taking depreciation into account. If insurance holders do not have a zero depreciation policy, they will only receive 50 per cent of the claim for damages to plastic and fibre parts of the car.
ZERO DEPRECIATION POLICY
Zero depreciation insurance, also known as zero dep or bumper-to-bumper insurance, is a type of vehicle insurance that provides coverage for the full cost of repair or replacement of damaged car parts without accounting for depreciation. This means that even if a part of the car, say its bumper, needs to be replaced, the insurance company will cover the entire cost of the new part without deducting any depreciation.
Zero depreciation insurance is particularly beneficial for new cars or vehicles that are prone to higher repair costs. It helps the policyholder avoid the financial burden of paying for the depreciation cost, which can be significant, especially for expensive parts. However, it is important to note that zero depreciation insurance typically comes with a higher premium compared to standard insurance policies.
Generally, the zero-depreciation add-on is no longer applicable after the age of your car passes five years. Though some insurers offer the benefit for up to age of seven years. So, you need to check with your insurance company while opting for a zero-depreciation add-on cover to see its duration, renewal, benefits, limitations, terms and further conditions.
CAR GETTING WASHED AWAY IN FLOODS
If a car is damaged or destroyed during floods, this would generally be covered under comprehensive insurance’s total loss policy, in which case the insurer will pay you the sum for which the car is insured.
OTHER FORMS OF DAMAGES TO YOUR CAR
Comprehensive car insurance usually covers other forms of rain-related damage, such as damage from hail or rock falling on a vehicle due to landslides. If a car is damaged due to poor road conditions caused by the downpour, the insurance company will cover the repair costs, depending on the specifics of the policy.
NO BENEFIT IF YOU DAMAGE THE CAR ON YOUR OWN
You will not be entitled to insurance benefits if you deliberately drive your car into a water body like a lake or pond, or damage the vehicle on your own.
Remember to contact your insurance provider directly for specific details on the coverage provided by your policy during the monsoon season. Insurance policies and coverage can vary depending on the provider and the specific terms of your policy.
