What is the coverage of water damage insurance for vehicles?

1 Answers
MacDakota
07/30/25 12:27am
Regarding the compensation for water damage insurance, the coverage varies among different insurance companies because they use different auto insurance clauses. Currently, there are three main types of auto insurance clauses in use in China: A, B, and C. Under clauses A and C, if a vehicle is driven on waterlogged roads, the resulting damage can be compensated regardless of whether the engine stalls or is restarted. However, clause B stipulates that damage caused by flooding or driving through water, including engine damage due to restarting, will not be compensated. Other important notes: For vehicle water damage insurance, almost all insurance companies set an absolute deductible rate of 20%. This means that regardless of whether the policyholder has purchased a zero-deductible add-on, the compensation for water damage insurance will be discounted by 20%. Water damage insurance (referred to by some insurers as engine-specific insurance) is a derivative coverage outside of standard auto damage insurance. This is because standard auto damage insurance typically excludes coverage for engine water damage, making water damage insurance an additional coverage specifically designed for engine protection. After purchasing water damage insurance, the insured vehicle can receive compensation for engine damage caused by driving through waterlogged roads or being submerged in water.
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