Does Insurance Cover Water-Damaged Vehicles?
2 Answers
Insurance companies will compensate under the condition that the insured vehicle has a vehicle damage insurance policy and it is within the validity period. If the vehicle is parked and gets flooded, as long as it is a policy issued after the comprehensive reform, the vehicle damage insurance includes engine water damage coverage, hence it can be compensated. For policies issued before the comprehensive reform, there is a no-deductible clause, and whether full compensation is provided will be determined based on the actual circumstances. Below are the relevant details: 1. Vehicle stalls due to water while driving: If the driver attempts to restart the engine, causing engine damage, it is not covered by the insurance, so never attempt to restart the engine during flooding; 2. Comprehensive auto insurance reform: The cutoff is at midnight on September 19, 2020, adding seven new insurance coverages to the original protections, including theft, separate glass breakage, spontaneous combustion, engine water damage, no-deductible rate, designated repair shops, and inability to find a third party.
Last year my car got flooded in a heavy rainstorm, and I remember the insurance company told me claims depend on the specific situation. First, you need to confirm if you have purchased vehicle damage insurance, which nowadays basically includes water damage coverage. If the car was flooded while parked, like that time I left it in the underground garage, timely reporting with photos usually results in full compensation. But if the engine stalls after driving through water, never recklessly try to restart it—otherwise, if the engine gets destroyed, they definitely won’t cover it. I recall having to contact the insurance company within 48 hours, and they arranged the towing. Also, if you’ve modified the wiring, make sure to disclose it upfront, or the claims process could get messy.
