How Do Insurance Companies Compensate for Flood-Damaged Cars? How Much Do They Pay?
2 Answers
Insurance companies will compensate for flood-damaged cars based on different situations. Below are the compensation scenarios for flood-damaged cars under various circumstances: 1. Car submerged while parked: If the car is submerged while parked and the owner has previously purchased auto damage insurance, the insurance will cover the compensation. If the car is damaged by falling objects or power poles during heavy rain or while floating, these are all covered under the auto damage insurance. 2. Car submerged while driving with a secondary start: If the car stalls due to being submerged while driving through water and the owner attempts a secondary start, regardless of whether the old version of water damage insurance (before the insurance reform on September 19, 2020) or the new version of auto damage insurance was purchased, the insurance company has the right to refuse compensation for engine damage caused by this.
I once encountered a problem with a flooded car. At that time, my car was submerged during a heavy rainstorm, and I immediately contacted the insurance company. They first sent someone to assess the damage. If the car was insured under comprehensive coverage, they would decide whether to repair or compensate based on the actual value of the vehicle. For example, if the repair costs were too high and exceeded the car's value, the insurance company would directly total the vehicle and pay the market price before the accident. If repairs were cost-effective, they would cover the repair expenses. The compensation amount is influenced by the coverage limit, deductible, and specific contract terms, usually around 80% of the vehicle's replacement cost, or possibly less. Remember to report the incident within 24 hours and bring documents like photos of your ID, etc. Don’t delay, otherwise the compensation may be reduced. Usually, when driving in rainy weather, park your car on higher ground to avoid trouble later.
