Where Do Flood-Damaged Cars End Up?

[StGabriela]

Here are the destinations of flood-damaged cars: 1. Insurance company reclamation: For insured vehicles, if the water level reaches the dashboard or higher, the insurance company will either cover the repairs or declare the car a total loss. Based on current understanding, if the water reaches the dashboard, the insurance company will typically declare it a total loss. After settling the claim, the insurance company will not simply scrap the vehicle. 2. Repairs: To minimize losses, many insurance companies will tow these vehicles back for processing. Once the total loss claim is settled, the cars become the property of the insurance company, which will then categorize them. Vehicles with higher repair value will be sold to third parties for restoration, while those with severe damage and low repair value will be dismantled, with parts re-entering the market as salvage components. 3. Scrapping or recycling: Only a very small number of vehicles with low residual value, older models, or those with particularly complex electronic systems and high repair difficulty may end up being scrapped. This process is usually not handled directly by the insurance companies. After reclaiming these vehicles, the insurance companies will auction them off in bulk to contractors, who then sort through them. Some of these vehicles may eventually be resold as premium used cars.