Does Comprehensive Coverage Cover Natural Disasters?

What Is Comprehensive Car Insurance?

Comprehensive car insurance, also known as "other than collision" coverage, is a staple policy option among insurance companies, primarily because it picks up where collision insurance leaves off. While collision insurance guards against the damages resulting from a direct vehicle collision, whether it's with another car or an object, comprehensive insurance extends that protection to any other harm to your car, ranging from theft and vandalism to natural disasters.

Comprehensive car insurance typically covers:

• Certain natural disasters
• Animal-related damages
• Glass breakage
• Damage from falling objects
• Fire
• Explosions
• Theft and vandalism

Is Comprehensive Coverage Required?

Comprehensive coverage is optional, but liability insurance, which covers damage to the other person's car and their medical expenses after an accident, is required in almost every state. If you have a car loan, though, your lender may require you to carry comprehensive coverage. Lenders want to safeguard their investment as much as you want to protect your car. But once the loan is paid off, you can choose if you want to continue to carry comprehensive insurance.

If your car is older and paid off, you may opt to skip comprehensive coverage altogether. However, if you live in an area prone to natural disasters and you can't afford to pay for potential vehicle repairs out of pocket, it's wise to keep this type of coverage.

Will Comprehensive Cover Natural Disasters?

Comprehensive insurance does cover natural disasters. Comprehensive coverage exists precisely for those events that are out of your control, which includes natural disasters. Whether it's a hurricane, tornado or even a volcanic eruption, if your vehicle is affected, comprehensive insurance is likely to provide coverage.

But how do insurance companies define a natural disaster? Here's a list of some specific natural disasters that may be covered under a car insurance policy. Ultimately, it's best to check with your insurance company to confirm that their comprehensive insurance will cover each of these events.

• Hurricanes and tropical storms: Damage caused by hurricanes, tropical storms and wind is typically covered. However, it's essential to review your policy carefully, as some insurers may have specific provisions or limitations for these types of events.
• Hail: Hailstorms can occur independently of hurricanes and tropical storms, but you should be covered for hail damage to your car as well.
• Flooding: Flooding can be caused by heavy rains, overflowing rivers or storm surges. This coverage can be particularly important if you live in an area prone to flooding or if you frequently park your car in low-lying areas.
• Earthquakes: Earthquakes are usually included in standard comprehensive coverage. If you live in an earthquake-prone area, it's still best to check whether your comprehensive insurance includes this coverage or if you need to purchase it separately.
• Tornadoes: These storms can cause severe damage to your car that could result in a total loss.
• Wildfires: This includes direct damage from flames as well as smoke damage to your car.
• Other natural disasters: Comprehensive insurance may also cover damages resulting from other natural disasters, such as volcanic eruptions, landslides and lightning strikes, depending on your policy.

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What to Expect After Filing a Natural Disaster Claim

Natural disasters can come out of nowhere. It's important to know the next steps when you file a claim so you can resolve it with your insurance company and get back on the road sooner.

• Consider your coverage limit. Your policy may have limits on how much it will cover for natural disaster damage. It's important to be aware of these limitations ahead of time.
• Provide documentation. To process your claim, you'll need to provide documentation of the damages, including photos, location and time of occurrence, and more. Check with your insurance company to see what they require. The more thorough your documentation, the smoother your claim process can be.
• Find out results from the insurance adjuster inspection. After you file your claim, an insurance adjuster will be sent to inspect your vehicle. Their assessment will be crucial in determining the next steps for your claim.
• Pay your deductible. After a qualifying natural disaster, you'll need to pay your deductible. This is your out-of-pocket contribution before your insurance company covers the bill. Deductibles can range in amount depending on what you chose when you set up your policy.
• Wait for claim approval and repair. Once your claim is approved, the insurance company will either pay to have your vehicle inspected and repaired at an auto shop, or you'll receive a check for the car's cash value if the insurance company deems your vehicle a total loss.

Will My Premium Increase After a Claim From a Natural Disaster?

Your premium may increase after filing an insurance claim for a natural disaster. However, this increase may not be as significant as the premium increase that filing a claim for a car accident would trigger. Insurance companies assess risks and set premiums based on the likelihood of a claim being filed. While a natural disaster is indeed a risk, it's a different kind of risk compared to everyday car use. Also, some insurers offer an accident forgiveness program that spares you from rate increases after your first accident, which may include natural disasters.

The Bottom Line

Adding comprehensive car insurance can help you prepare for the unexpected, including natural disasters. But before signing up for coverage, it's important to understand which natural disasters may be covered under your policy as well as how to file a claim. Even if your insurance premiums increase after filing a claim, it may not be significant and the coverage you receive for repairs or the replacement of your vehicle can be a worthy tradeoff.

No matter the level of insurance coverage you choose, shop around to review insurance companies and compare quotes. You can use Experian's free auto insurance comparison tool to narrow your options.