It's the simple device that could save lives and millions of dollars during flood emergencies.

The DipStik continuously monitors water levels in flood-prone areas, sending alerts to the local council and State Emergency Service units when floodwater is detected. 

As well as providing early flood warnings, it features a high-powered flashing beacon to alert motorists and members of the public to a flooded area or road.

The technology, being trialled by NRMA Insurance in partnership with the NSW SES, could be be put to the test in coming days, with heavy rain set to soak the coast.

The head of shared value at NRMA Insurance, Ramana James, said the trial was important in helping communities plan for and manage floods, and in raising awareness of the dangers of driving through floodwater.

A quarter of car owners say they have driven through floodwater, with 46 per cent of those saying they did not think it was dangerous, NRMA Insurance has found. Further research by the insurer and the University of NSW has shown that even large vehicles can easily be carried away by rising water. 

Bill Roffey, flood rescue spokesman with the NSW SES, said it was never safe to drive through floodwater. "By doing so, drivers are not only putting their own lives at risk, but they are also risking the lives of our volunteers," he said. 

In the past year, the SES has performed 600 flood rescues and responded to 31,817 flood and storm jobs in NSW.

Of the 70 flood-related deaths in Australia between late 2010 and mid-2015, two-thirds resulted from people entering floodwaters, in most cases in vehicles that were swamped or swept away.

"People still drive into it because they're focused on, 'I want to get from A to B and I'll get there any way I can'," Mr Roffey said. "They end up being stranded in the middle of floodwater and don't realise that when they're driving through, the water just comes up and kills the electrics in the engine, or gets into the fuel and the engine dies."

With the co-operation of six local councils, a 12-month trial of the Australian-made DipStik is under way in areas prone to flash flooding: Campbelltown, Liverpool, Shellharbour, Dungog, Wollondilly and Coffs Harbour.

"If one of those alarms is triggered and provides a warning to people, then it's been a success," Mr Roffey said.

Mr James said the "simple, affordable" technology could help mitigate the damage caused by flooding, which costs the NSW community an estimated $200 million annually.

"We know that early warnings are an important part of helping people avoid impacts of floods," he said.

"Ultimately, this type of technology has the ability to help avoid loss of life, because in the worst-case scenario that is what happens in these severe floods and storms. We would love to see this ... also preventing people from having accidents and damaging their assets and having to make claims."

To watch an animation explaining how the DipStik works, click here.