Will the insurance company replace a new car if it is submerged after purchasing waterlogging insurance?
2 Answers
If a car is submerged after purchasing waterlogging insurance, the insurance company will not replace it with a new car. Compensation will be provided according to the scope of the vehicle damage insurance clauses. According to the vehicle damage insurance terms, compensation applies to vehicles submerged due to garage flooding or damaged by falling trees and rocks caused by heavy rain. In post-storm damage claims, as long as the engine is not flooded, all repairs and part replacements are covered under the vehicle damage insurance. Below is relevant information about vehicle insurance: 1. Definition of auto insurance: A widely offered insurance type in China, it covers motor vehicles such as cars, electric vehicles, motorcycles, and tractors. Auto insurance can be divided into commercial insurance and compulsory traffic insurance. Commercial insurance further includes main insurance and additional insurance. 2. Main commercial insurance coverage: The main commercial insurance includes vehicle damage insurance, third-party liability insurance, passenger liability insurance, and comprehensive theft insurance.
I often pay attention to auto insurance details and find that many people mistakenly believe that water damage insurance covers new car replacements. In reality, it compensates based on the vehicle's actual market value. Water damage insurance is an add-on coverage that protects against losses caused by flooding or water submersion during heavy rain, such as engine water ingress or interior corrosion. Insurers assess payout amounts based on the car's age, mileage, and current market value. If the flooded vehicle is repairable, they cover repair costs; if it's a total loss, compensation is paid in cash at the depreciated value rather than a new car replacement. I recommend policyholders carefully review insurance terms and avoid wishful thinking. Additionally, never start the engine after water submersion—first document the damage with photos, contact the insurer, and choose authorized repair shops to prevent further damage. Remember, this won't save you a fortune but can minimize unexpected losses.
