Does Car Insurance Cover Severe Weather Conditions?

Contrary to popular belief, in most cases comprehensive car insurance will provide protection against severe weather conditions, but third-party insurance will not cover damage to your own vehicle. In other words, severe weather is not an “excluded event”. If your car is damaged because of the bad weather, your insurer will provide compensation based on the actual repair costs, and if your car is declared a total loss, your insurer will typically compensate you based on the market value of your car. The calculation of depreciation will normally take into account factors such as the age of your vehicle and its mileage.

Of course, like other types of claims, when you file a claim with your insurer, you may need to pay a deductible (if applicable) out of pocket. What’s more, because of your claim, your NCD will be reduced, and you may see your car insurance premiums go up next year.

One of the most important factors insurers consider when deciding whether to compensate is whether you have "taken all reasonable steps to protect your car from typhoon damage". For example, if you knowingly take risks and drive through flooded areas or drive to coastal areas to “see the storm in its full fury”, it can be seen as a failure to protect the vehicle. If your insurer believes that you intentionally put your car in harm's way, they may refuse to pay the claim. Ways to protect your vehicle include:

The procedure for claiming car damage caused by a typhoon is similar to the general procedure for claiming car damage:

1. If there are any injuries, you should immediately call the police.

2. Even if there are no injuries, you should still file a report with the police within 48 hours and submit an accident report/claim form, a copy of your police statement, accident photos or videos, and any other relevant information to your insurer.

3. Your vehicle will be towed to a repair shop for assessment. Insurers typically do not specify which repair shop you should go to unless it is only for repairing your windshield. Windshields are a special component of a car, and most insurers have designated repair shops for them.

4. You will need to pay the deductible to your insurer.

5. Once the repairs are done, your insurer will pay for them on your behalf.

Please note that even if you consider your car a total loss (e.g., due to flooding), you should still follow the first three steps of the above claims process. If the repair shop subsequently determines that your car needs to be scrapped, your insurer will issue a check directly to you as compensation.

If, unfortunately, you have purchased only third-party insurance, your insurer will not provide any compensation for the damage to your car. However, this does not mean there is nothing you can do.

As mentioned earlier, we have received a number of claims recently related to flooding and falling objects. If you believe that a third party is responsible for your losses, you can seek compensation from them in a civil action. Examples of third parties include the management company of the parking lot or the owner of a property whose glass window fell onto your vehicle. In these cases, after reporting to the police, you can arrange for an independent assessor to come to the scene to assess the situation.

Furthermore, it is important to note that you are claiming against the third party themselves, not their insurer. Therefore, whether or not their insurer is willing to compensate them should not be your concern.

Finally, if the repair cost you are claiming is less than HKD $50,000, you may consider filing a claim with the Small Claims Tribunal as legal representation is not required there. However, if the amount of compensation you are seeking exceeds HKD $50,000, then you should hire a lawyer and consider pursuing the matter in a higher-level court.