What is the total loss standard for flood-damaged vehicles?
2 Answers
The total loss standards for flood-damaged vehicles are as follows: 1. For vehicles where the floodwater in the passenger compartment exceeds the height of the instrument panel due to the accident, a presumed total loss approach can be adopted with the customer's agreement. The loss is determined based on the actual value amount, and the recovered vehicles should be uniformly processed through auction by the branch company. 2. For vehicles that do not meet the above total loss standard, normal loss assessment applies. If the repair cost quoted by the repair shop and verified by our company exceeds 80% of the actual value, a presumed total loss can also be negotiated and handled according to the above method. 3. For other special cases where the customer requests a presumed total loss approach, the matter should be reported to the general manager's office of the branch company's claims department for review.
When a flood-damaged vehicle is declared a total loss, insurance companies typically consider two factors: the depth of water submersion and the repair costs. For instance, if water rises above half the wheel height or reaches the seats, the electrical system is likely damaged, making repairs both expensive and hazardous. Based on my experience with numerous cases, if repair costs exceed 50% to 70% of the vehicle's value, insurers will directly write it off for compensation. This is because water damage leads to corrosion and safety risks, making long-term costs higher than repairs. I advise owners to stop driving immediately, take photos for evidence, and report to insurance to avoid disputes and delays. Never attempt to restart the engine, as it may cause further electrical short circuits—only professional assessment can safeguard your interests.
