How does the insurance company compensate for a water-damaged vehicle being scrapped?
2 Answers
If a vehicle is soaked in water and the engine is not flooded, replacing parts or repairing circuits falls under the coverage of the vehicle damage insurance. If the vehicle is deemed a total loss, compensation can also be claimed as a total loss. Damage caused to the vehicle when it stops in waterlogged areas will be compensated according to the insurance policy. However, damage resulting from the driver forcibly starting the engine after water immersion will not be covered. If the vehicle is submerged while stationary and no attempt is made to start it, the insurance company will compensate for the loss, provided that the policyholder has not purchased additional water damage insurance.
Last year, my car was flooded, and I immediately reported it to the insurance company. After they sent someone to inspect it, they said the repair costs were too high—almost enough to buy a new car—so they declared it a total loss. The insurance payout is calculated based on the vehicle's actual value and salvage value: typically, they assess the market price of the car before the flooding minus the value of any parts that can still be sold. Mine was covered by comprehensive insurance, so I received a partial payout. The key is to have collision coverage to file a claim, and it’s crucial to report the incident promptly with evidence to avoid delays. Flood-damaged cars pose significant risks; if water seeps into the engine or electrical systems, it’s often beyond repair. After processing, I recommend thoroughly drying all components or disposing of the wreckage through auctions. In flood-prone areas, choosing a better insurance plan provides peace of mind.
