Will the insurance company fully compensate for a water-damaged car?

[LilaAnn]

If a car is submerged in water, the auto damage insurance may not necessarily provide full compensation, as it depends on the actual circumstances. For insurance purchased before September 19, 2020, both auto damage insurance and waterlogging insurance must be purchased. Additionally, if the car stalls due to the owner not restarting the engine or not moving the vehicle, the insurance company will provide full compensation. However, if the auto damage insurance was purchased after the 2020 auto insurance reform, it already includes waterlogging insurance. Therefore, for losses caused by engine waterlogging, owners who have purchased auto damage insurance will receive full compensation. Losses caused by restarting the engine are not covered by waterlogging insurance. Moreover, after a car is submerged in water, insurance companies usually compensate based on the actual loss. If the loss exceeds the coverage limit, no compensation will be provided. For example, if the auto damage insurance coverage is 200,000, the insurance company will pay a maximum of 200,000.