Can insurance company compensate for your car after it is flooded? You will know after reading this.

First of all

If the vehicle is already flooded, or stalls during the journey, leave the car in place, reach a safe area as soon as possible, and then contact the insurance company and 4S shop for handling.

Discussion

According to the Shanghai weather report, Typhoon “Fireworks” will arrive in Shanghai on July 25th, accompanied by heavy rain. On that day, it is inevitable that vehicles will be flooded. It is believed that what everyone is more concerned about now is the relevant issues of vehicle compensation. Today, let’s talk about what to do if a vehicle is flooded and how to handle compensation.

Compensation for flooded vehicles depends on the following conditions

Vehicle insurance is purchased before September 19, 2020

If your vehicle insurance is purchased before September 19, 2020, in addition to the vehicle damage insurance, you must separately purchase engine wading insurance. Otherwise, if your vehicle is flooded, the insurance company will not reimburse.

Vehicle insurance is purchased after September 19, 2020

On this day, the country officially implemented comprehensive reforms for vehicle insurance, and engine wading insurance has been included in vehicle damage insurance. If your vehicle insurance is purchased after this day, compensation can be obtained if your vehicle is flooded.

Note: Different regions in China may have slightly different timing for the insurance reform. If you are unsure whether your insurance policy includes engine wading insurance and your car insurance was purchased before September 19th last year, please call the insurance company to confirm.

Things that must not be done after wading

Damage caused by starting the engine after the engine has entered the water will not be covered by the insurance. If the vehicle is traveling through a flooded area, and the engine is turned off due to forces beyond control, starting the vehicle again and causing damage to the engine/motor will not be covered by the insurance.

Under what circumstances can compensation be obtained?

  • The vehicle is parked in place and encountered flooding.
  • If the vehicle stalls/powers off while driving through a deep water area, but there is no second ignition/power, compensation can be obtained.

Specific regulations after the insurance reform

Are there any natural disasters that are not covered by insurance?

EarthquakesCar damage insurance also follows the convention of most property insurance companies not covering earthquakes. This natural disaster has already been removed from the car insurance regulations, mainly because earthquakes lack data and experience, and insurance regulatory authorities do not encourage insurance companies to underwrite it.

What are the situations where no compensation is given?

Mental damage

Any mental compensation caused by an insurance accident is not compensated, because most insurance companies lack a loss assessment standard for mental harm. Therefore, the resulting mental compensation is considered exempt from liability.

Theft of parts

Vehicle parts such as tires, audio equipment, and body accessories are exempt from liability for this type of non-whole vehicle theft.

Wear and tear of vulnerable parts of the vehicle

Daily consumables such as tires and brake pads are not within the scope of compensation.

Do not cover for those who do not meet driving conditions

Driving under the influence of alcohol, driving without a license, driving with a type of vehicle that does not match the license, failure to get the vehicle inspected on time, and driving on a highway during a probationary period. Insurance companies refuse to compensate for the above situations.

What preparations are needed for claims?

  • Report the case within 48 hours
  • Original ID card of the insured person
  • Original policy document
  • Vehicle license

That’s all for this knowledge sharing. Typhoon is about to hit Shanghai on July 25. I wish all drivers safe and sound. If you encounter danger, please ensure the safety of yourself and your family as the top priority. Money is just an external thing, don’t be greedy.

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.