# CL-M-05: My insurer says I shouldn't have driven through floodwater and won't pay for the damage. What can I do? Collected 11 October 2026 [Car insurance study](https://nzbrands.ai/research/insurance/car-insurance) ## ChatGPT Answer ID: cd9df71d-6d8c-4c17-88cd-b3e9a9db5962 If your insurer has declined your claim because you drove through floodwater, you can still challenge the decision. In New Zealand, the key question is usually whether the insurer is applying the wording of your policy correctly and whether the circumstances justify the exclusion they are relying on. [Consumer Protection](https://www.consumerprotection.govt.nz/help-product-service/managing-money/insurance?utm_source=chatgpt.com) Here are practical steps you can take: 1. **Ask for the refusal in writing** - Request the exact policy clause they are relying on. - Ask them to explain why they believe your actions fall within that exclusion. - Ask for the evidence they used (for example, assessor reports, photos, weather or road information). 2. **Review your policy wording** Look for sections about: - flood or water damage - driving through water - reasonable care / negligence - exclusions and conditions of cover The wording matters. There can be a difference between deliberately taking an obvious risk and encountering unexpected flooding where the depth, speed, or danger was not reasonably apparent. 3. **Make a formal complaint to the insurer** Tell them you are making a **formal complaint**, not just asking for a review. Explain: - what happened - why you disagree with the decline - what outcome you want (for example, reconsideration of the claim) Insurers must have a complaints process, and Consumer Protection recommends raising the issue directly with the provider first. [Consumer Protection](https://www.consumerprotection.govt.nz/help-product-service/managing-money/how-to-complain-about-your-financial-service-provider?utm_source=chatgpt.com) 4. **Gather evidence** Useful information may include: - photos/videos of the water and road conditions - dashcam footage - weather warnings or council/road notices - witness statements - your account of why you believed it was safe to proceed - the mechanic’s report showing what damage occurred 5. **Escalate if the insurer does not change its decision** If you cannot resolve it, your insurer’s dispute resolution scheme may be able to review the matter. Financial service providers in New Zealand must belong to an approved dispute resolution scheme, such as the Insurance & Financial Services Ombudsman Scheme or another approved scheme. These services are free and independent. [Financial Markets Authority](https://www.fma.govt.nz/consumer/everyday-finance/disputes-and-consumer-protection/?utm_source=chatgpt.com) 6. **Consider further options** Depending on the situation, you may also be able to use the Disputes Tribunal for eligible claims. [Consumer Protection](https://www.consumerprotection.govt.nz/general-help/how-to-complain/get-a-final-decision-on-a-complaint?utm_source=chatgpt.com) A useful question to put to your insurer is: > “Please explain the factual basis for your decision that I breached the policy by driving through floodwater, including the specific policy wording relied upon and why you consider the exclusion applies in these circumstances.” If you tell me: - whether this was **car insurance** or another type of policy, - what the insurer says you did wrong (for example “ignored warning signs” or “water was too deep”), - and whether the car was damaged by **engine water ingress, electrical damage, or something else**, I can help you assess how strong your challenge may be and draft a complaint. ## Gemini Answer ID: 77ebc971-118d-4b2c-b731-22f65ae0f228 Having an insurance claim declined because you drove through floodwater is a stressful situation. Insurers often rely on policy exclusions relating to **"recklessness," "gross carelessness," or failing to take "reasonable care"** to protect the vehicle from loss. However, a declination is not always the final word. To challenge the decision or negotiate a better outcome in New Zealand, take the following steps: ### 1. Review Your Policy Wording Carefully * **Look for specific clauses:** Read your vehicle insurance policy document, specifically looking at sections covering exclusions, "reasonable care," or off-road/flood driving. * **Check definitions:** Does the policy explicitly exclude driving through water, or does it say you must not act recklessly? Insurers must prove that you intentionally took an unreasonable risk or were grossly negligent, rather than just making an error in judgment. ### 2. Gather Evidence and Context Insurers look at the facts of the incident. Think about and document details that support your case: * **The unexpected nature of the situation:** Were you caught unawares? For example, did the water rise rapidly around you while you were already on the road, or was the depth disguised by murky water, darkness, or a hidden pothole/drain washout? * **Lack of warning signs:** Were there any road closure signs, cones, or warnings present at the time you entered the water? If the road was open and other cars were passing, it supports the argument that driving through it appeared reasonable at the time. * **Dashcam or witness footage:** If you have dashcam footage or witness statements showing the conditions or how quickly the situation escalated, gather them immediately. ### 3. File a Formal Internal Complaint If you believe the insurer's decision is unfair or based on incorrect assumptions, do not just accept the phone call or email declination: * Contact your insurer and ask to lodge a **formal complaint** with their internal dispute resolution team (often handled by a dedicated complaints manager or customer resolutions team). * Clearly state why you disagree with their decision, providing your timeline, photos, and context about the road conditions. Insurers are bound by the **Fair Insurance Code** (administered by the Insurance Council of New Zealand) to handle complaints efficiently and fairly. ### 4. Escalate to an External Dispute Resolution Scheme (Free) If your insurer maintains their refusal after your internal complaint, or if they issue a "deadlock" letter, you have the right to take the dispute to an independent, free dispute resolution service. Depending on which scheme your insurer belongs to, you can approach: * **The Insurance & Financial Services Ombudsman (IFSO) Scheme** (ifso.nz) * **Financial Services Complaints Limited (FSCL)** (fscl.org.nz) These schemes are free for consumers. An ombudsman will independently review the case, look at the policy contract, check whether the insurer's interpretation of "reasonable care" is fair, and make a binding decision if the insurer is found to be in the wrong. *** **Would you like guidance on how to write a formal dispute email or complaint letter to your insurer?** ## AI Overviews Answer ID: 5d762fe0-d225-49bd-98d1-b45db7e3b5be If your insurer declined your claim for driving through floodwater, **you have the right to challenge their decision**. Insurers often decline these claims by arguing that driving into floodwater is an "intentional or reckless act" rather than an accident. However, under New Zealand law, they cannot simply state this—they must prove that you deliberately risked damaging the vehicle. * * * 1\. Formally Request the Exact Reason in Writing Ask your insurer for a written breakdown stating the precise policy clause or exclusion they are using to decline the claim. * **The "Accidental" Argument:** Motor insurance covers sudden, accidental damage. For a rejection to hold, the insurer usually must prove you _knew_ there was a high certainty of ruining your car, yet you went ahead anyway. * If you misjudged the depth, followed another vehicle that made it through safely, or were forced into the situation by sudden traffic or rising levels, you can argue the damage was a genuine, unforeseen accident. 2\. Follow the Insurer's Internal Complaints Process Before taking the matter to an outside authority, you must exhaust your insurance provider’s internal dispute resolution system. * Submit a formal complaint detailing your perspective of the event (e.g., poor visibility, lack of signage, or lack of safe turning space). * The insurer must review your case and issue a **"Letter of Deadlock"** if they still refuse to change their stance. 3\. Escalate to an Independent Ombudsman If you cannot agree, or if the insurer takes longer than two months to resolve your complaint, you can take your case to a dispute resolution scheme for free. Depending on who your insurer is, they will be registered with one of two independent bodies: * **Insurance& Financial Services Ombudsman Scheme (IFSO)**: Covers the vast majority of mainstream New Zealand insurers. * **[Financial Services Complaints Ltd (FSCL)](https://fscl.org.nz/)** : Covers specific niche insurers and brokers. The Ombudsman will look at the case impartially to see if the insurer applied the policy terms fairly. If the Ombudsman rules in your favor, the insurer is legally bound by that decision. * * * Crucial Warnings While You Navigate This * **Be completely honest:** Do not alter details about where you drove or the height of the water. If an insurer flags you for fraud on the **Insurance Claims Register (ICR)** , your other policies (like home and contents) can be cancelled, and you may find it impossible to get insured anywhere else in New Zealand. * **Do not drive the car:** Driving a water-damaged car is a major safety hazard due to potential sudden electronic or brake failure. Keep the car turned off until it can be inspected. * * * To help frame your next steps, could you tell me: * Was the floodwater **static on a road** you chose to enter, or did **flash flooding catch you by surprise** while already driving? * Has your insurer already sent you a **final written decline letter** , or are they currently just telling you this over the phone? ## Google AI Mode Answer ID: 6a0d9c1a-1391-466d-ab26-69943983690b If your insurer has declined your claim because you drove through floodwater, **you can formally dispute their decision by requesting an internal review, asking for the specific policy clause they relied on, and escalating the complaint to an independent dispute resolution scheme if they refuse to budge.** Insurers often decline these claims under policy exclusions for "reckless behaviour" or failing to take "reasonable care" to avoid damage. However, whether they are legally justified depends heavily on the exact circumstances and the wording of your contract. Steps to Challenge the Decision 1. **Request the Formal Decision and Policy Wording in Writing** * Ask your insurer to provide the exact clause in your comprehensive car insurance policy wording that they used to decline the claim. * Review the definition of "reckless" or "reasonable care" in your policy booklet. Under New Zealand insurance law, the onus is generally on the insurer to prove that you acted with reckless disregard (i.e., that you knew the extreme risk and deliberately courted it). 2. **Gather Evidence and Context** * Write down a clear, factual timeline of the event. Did sudden flash flooding trap you unexpectedly, or was the depth of the water hidden (e.g., murky water over a flooded road where depth wasn't visible)? * Collect any photos, dashcam footage, weather warnings for your specific location at that exact hour, or statements from witnesses that show the situation was unavoidable or that you had no safe alternative route to escape rising waters. 3. **File a Complaint with the Insurer’s Internal Dispute Resolution (IDR) Process** * Contact your insurance company's internal complaints department (their dispute resolution process). Tell them you disagree with the decision and provide your new context and evidence. * Insurance companies in New Zealand are required to have a formal internal process to review deadlock decisions. 4. **Escalate to an Independent Ombudsman Scheme** * If your insurer upholds their decision and you remain unsatisfied, you can take your complaint to an external, free dispute resolution scheme that your insurer belongs to. * Most general insurers in New Zealand belong to the **[Insurance& Financial Services Ombudsman (IFSO) Scheme](https://www.ifso.nz/)** or **[Financial Services Complaints Limited (FSCL)](https://www.fscl.org.nz/)**. * These services are completely free for consumers. They will review whether the insurer's decision was fair, reasonable, and compliant with the policy terms and relevant law. Their final decisions are binding on the insurer if you choose to accept them. If you'd like to share **what the water depth was** , **whether the depth was hidden/unexpected** , or **the name of your insurer** , I can provide more specific guidance on how to approach your appeal.