How Does Insurance Cover Water-Damaged Vehicles?

[McIsabela]

After reaching an agreement with the policyholder, the insurance company will compensate based on a constructive total loss. The compensation amount is the insured value of the vehicle minus the salvage value. They may also recommend the policyholder opt for a constructive total loss settlement. The compensation is determined by deducting depreciation from the new car purchase price at the time of the incident, and the damaged vehicle is then reclaimed and handled by the insurance company. The compensation method depends on the repair costs. The insurance company determines the payout based on the damage assessment report provided by the repair shop.