Does Car Insurance Cover Water Damage Claims?
1 Answers
Car insurance covers water damage claims, provided that the policyholder has purchased vehicle damage insurance. Vehicle Damage Insurance Coverage: If vehicle damage insurance is purchased, the insurance will cover losses except for the engine. If the additional water ingress insurance is purchased, the insurance will fully cover the vehicle damage. If neither is purchased, no compensation will be provided. Compensation Amount: The specific compensation for the vehicle depends on the policyholder's insurance coverage amount and the assessment results of the damage. If the estimated repair cost exceeds 50% or more of the vehicle damage insurance coverage (i.e., the current value of the vehicle), the insurance company will typically evaluate the vehicle's residual value. The sum of the repair cost and residual value compared to the insurance coverage will determine whether to negotiate with the policyholder to directly apply for vehicle scrapping procedures without repair, compensating the policyholder with the vehicle damage insurance coverage amount. Important Notes: If a car stalls due to water immersion on the road or gets stranded in accumulated water, according to the insurance terms, the insurance company will assess the liability for damages other than the engine based on specific circumstances, consistent with the above-mentioned vehicle damage insurance claims for parked vehicle damage. For engine damage caused by water ingress, the engine water ingress insurance must be activated for compensation.
