Does your car insurance covers sinkholes?

Aug 8, 2021 1 min read
Does your car insurance covers sinkholes?

The motor insurance policy has two components- own damage and third-party cover.

In monsoon, instances of heavy rainfall causing damage to everyday life are common. Sinkholes are scary and unexpected when they happen. Majorly, they have been known to swallow up cars, homes, and much more. And such cases have left people wandering if their car insurance policy will come in use if their car car falls victim to a sinkhole.

It's important to understand the right type of car insurance in place when you file a claim for sinkhole damage. The Motor Vehicles Act, 1988, a basic car insurance policy is mandated which is called third-party insurance. This is only going to protect against auto crashes, physical injury or personal property. This policy would be of no use when an individual’s car sinks into a sinkhole, instead it is the comprehensive car insurance policy that will cover the damage cost.

If you’re financing your vehicle, most lenders require you to buy full coverage, which includes comprehensive. This type of policy protects you against non-driving related incidents, including:

  • Sinkholes
  • Vandalism
  • Rock damage
  • Accidental damage like Road Debris
  • Hail damage

A comprehensive insurance will cover sinkhole damage because it can be classified under accidental damage and if it disappears completely, it can be claimed as total loss.

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