If you notice clear fluid leaking from your car, it can be difficult to identify at first glance. Clear leaks are often water condensation from the air conditioning system, but they can also indicate brake fluid, power steering fluid, or even a transmission fluid leak. Identifying the source quickly is important, as some clear fluids are harmless while others are critical to vehicle safety.

What does it mean if clear fluid is leaking?

Clear fluid under your car could be harmless water draining from the AC system, especially on hot days. However, if it’s slippery, oily, or has a noticeable smell, it may be a hydraulic fluid such as brake fluid or power steering fluid, which are vital for safe driving.

Common causes of clear fluid leaks

• Air conditioning condensation – harmless water dripping under the passenger side
• Brake fluid leak – clear to slightly yellow, slippery, with a sharp odour
• Power steering fluid – clear to reddish with an oily feel
• Transmission fluid – may appear clear to light pink when new
• Coolant leak – some coolants are clear or lightly coloured when fresh

Why do you need to fix this problem quickly?

While water condensation is harmless, leaks of brake fluid, power steering fluid, or transmission fluid can make your car unsafe to drive. Brake fluid leaks in particular can lead to complete brake failure if ignored.

How do you know when to get it checked?

You should book an inspection if:

• The fluid feels oily or slippery instead of watery
• You notice low fluid levels in the brake, transmission, or power steering reservoirs
• The leak continues even when the AC is off
• You smell chemicals near the leak

What happens during an assessment?

A mechanic will:

1. Identify the type of fluid by texture, smell, and colour
2. Inspect AC drain lines to confirm condensation
3. Check brake, power steering, and transmission systems for leaks
4. Pressure test the cooling system if coolant is suspected
5. Advise on repairs or fluid replacement if required

How much does it cost to fix?

If it’s just AC condensation, no repairs are needed. Brake fluid, steering, or transmission leaks typically cost $250–$900 to repair, depending on the component. Coolant leak repairs range from $200–$1,000+ depending on severity.

Is it unsafe to drive with clear fluid leaking?

If the fluid is only water condensation, it’s safe to drive. However, if it’s brake fluid, transmission fluid, or power steering fluid, it can be extremely unsafe. It’s best to have the leak checked immediately to confirm the source.