How does the insurance company compensate for a car that is completely scrapped due to flooding?
3 Answers
There is no separate scrapping standard for water-damaged cars. Whether they are scrapped or not follows the same standards as vehicles damaged by other causes. When a vehicle is damaged in a traffic accident, the insurance company will advocate for 'repair as the primary solution.' After a vehicle is flooded, evidence should be retained to facilitate the claims process. The scrapping standards are as follows: 1. Repair costs: When the vehicle repair costs exceed 80% or more of the vehicle's value, the insurance company will proceed with the vehicle scrapping insurance claim. 2. Emission standards: If the vehicle still fails to meet national emission or noise standards after repair.
That time my car got completely submerged in a flood and was eventually declared a total loss. The insurance company first had me file a claim, then sent someone to take photos and gather evidence on site. The tow truck hauled the car away for damage assessment, and they found the repair costs exceeded the car's value, so they directly initiated the total loss procedure. The key is to check your auto damage insurance policy - since the 2020 auto insurance reform, most policies now include flood coverage. The payout is calculated based on the car's current market value, for example, a five-year-old vehicle would reference used car market prices for that model year. They also deduct the salvage value - what the waterlogged car frame can fetch as scrap metal. The whole process took twenty days, and I ultimately received over 70,000 yuan in compensation. Important reminder: never attempt to start the engine on your own - if a flooded car is ignited, the insurer may deny the claim. Remember to prepare documents like the vehicle registration certificate, otherwise it could delay your payment.
There are tricks to handling water-damaged car insurance claims. If the water reaches the dashboard level, it generally meets the total loss criteria. Insurance companies look at two figures: the vehicle's actual value and repair costs. The former refers to used car market prices, while the latter includes expenses like replacing circuit boards and repairing the engine. If repair costs exceed the vehicle's value, it's declared a total loss. The exact compensation depends on your policy, with vehicle value depreciating about 10% annually. For example, a car bought for 150,000 yuan would be worth just over 100,000 yuan after three years. After reporting the claim, avoid touching the car and wait for the adjuster's inspection, as unauthorized actions may affect the decision. Prepare copies of your ID card, vehicle license, and bank card. If the coverage is insufficient, you might need to pay out of pocket, so it's best to insure at the purchase price when renewing.
