Does Insurance Cover a Car Driven into Water?

[ZoeyDella]

If a car is driven into water and becomes submerged, the insurance company will not provide compensation. Below is relevant information about insurance claims: 1. Basic Introduction: Articles 22 and 23 of the Insurance Law stipulate that after an insurance incident occurs, when requesting the insurer to compensate or pay insurance benefits according to the insurance contract, the policyholder, insured, or beneficiary must provide the insurer with all available evidence and materials related to confirming the nature, cause, and extent of the loss of the insurance incident. 2. Claim Methods: Insurance companies have two methods for settling claims with policyholders after an incident occurs, based on the terms of the insurance contract: compensation and payment. Compensation corresponds to property insurance and refers to the insurer's compensation for the policyholder's loss based on the extent of damage to the insured property at the time of the incident, within the limits of the insurance amount. Insurance compensation is compensatory in nature, meaning it only compensates for the actual loss incurred, up to the value of the damaged property, and never exceeds its value.