What is the total loss standard for water-damaged vehicles?
2 Answers
The following is an introduction to the total loss standards for water-damaged vehicles: 1. Level 1: The water has just reached the vehicle's chassis, and the exhaust pipe, fuel tank, and carbon canister may be submerged. The vehicle floor may become damp, but the likelihood of significant water ingress is low, and the impact on the vehicle's electrical equipment is minimal. 2. Level 2: The water level reaches halfway up the wheels. Due to the vehicle's incomplete sealing, water will begin to enter the interior. For lower-sitting sedans, the water level inside may affect the adjustment motors of the seats as well as electrical components such as heating and ventilation. 3. Level 3: The water almost completely submerges the tires. At this point, the water level inside the vehicle will fully immerse the seat cushions and the central armrest area, while also affecting a large number of electrical components.
Back in my hometown after the flood, I've dealt with many water-damaged vehicles. There are two main criteria for declaring a total loss: floodwater height and repair costs. Cars submerged above the hood are basically write-offs – even if repaired, they'll be plagued with issues. Insurance companies evaluate the ratio between repair costs and the vehicle's residual value. If repairs exceed 60%-80% of the residual value, they'll pay out the full vehicle amount. Flood-damaged cars that get repaired and resold typically lose 30-40% of their value. Once saw a Range Rover Sport whose ECU fried shortly after repairs – the fix cost nearly matched a new car's price.
