Cars at risk in floods

While insurance companies are preparing to pick up a £2.5 billion bill for damages caused by the floods, drivers in flood affected areas could see insurance premiums rise as much as 57% if they claim on a flood damaged car.

This research has been published by online price comparison and switching service uSwitch.com and notes that 1 in 4 motorists are not insured against flood damaged if they have third party fire and theft.

Many affected are young motorists that are priced out of the comprehensive insurance market but cutting corners on their cover could result in an expensive repair bill.

uSwitch have also established that drivers with comprehensive policies could be at risk due to several policies not being specific in terms of flood-related cover. All comprehensive car insurance policies cover damage to a vehicle but many have vague clauses or exclusions which could cause confusion. Insurers who are unclear in their policies about flood damage include Direct Line, Churchill, MORE TH>N, esure, Norwich Union Direct, Saga and Swiftcover.

A spokesperson for uSwitch commented that many motorists are playing an unsafe game by not securing sufficient cover. The past few weeks have confirmed that flooding is a real and present threat.

uSwitch concluded that those living in flood risk areas must ensure they verify with their insurer the adequacy of their current level of cover and acquire clarification on any kind of activity involving their vehicle that could potentially invalidate a flood-related claim. In addition, insurers must provide consumers clear information relating to a flood claim at the time a policy is taken out.

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