Why Flooded-Out Cars Are Likely Total Losses
When filing auto insurance claims, be patient and prepare for the worst, experts say
Car owners with a vehicle that was swept up by a hurricane face two hard facts. Their car is almost certainly totaled, if it was swamped. And their compensation will depend on theirĀ car insurance coverage.Ā
āFlood insurance is covered under the comprehensive portion of a car insurance policy,ā saysĀ Loretta L. Worters, vice president at theĀ Insurance Information Institute. āComprehensive coverage is generally optional, although your lender may require it if you have an auto loan.ā She points out that about three-quarters of people carry comprehensive coverage.
That leaves many people without this protection. And there can be a good reason for not adding this to your policy.Ā
āIn deciding whether or not to purchase comprehensive coverage, consider the market value of your car, as the coverage cost may outweigh the benefits,ā says Ellen Edmonds, a spokesperson for AAA. āIf a person has purchased comprehensive coverage (of course, before the storm), they should be covered for hurricane damageāincluding flooded cars.āĀ
Worters also notes that āwith todayās inflation and the tremendous rise in used-vehicle prices, consumers should make sure they have the right amount of auto insurance to protect them.ā
@consumerreports When filing auto insurance claims, be patientāand prepare for the worst. Learn more at cr.org/cars. #carsoftiktok #cartok #carcommunity ā¬ original sound - Consumer Reports
Be Prepared for Your Car to Be Totaled
You may have a strong emotional connection to your car, but if it has been in a flood, it might be too expensive to repair. Thatās because āwhen water enters your engineās air intake, it can lead to all sorts of problems,ā says John Ibbotson, chief mechanic for Consumer Reports.
Are You Covered for the Worst?
Consumer Reports recommends that all car owners consider having comprehensive coverage even if their car is older.
āIf you did not elect to purchase comprehensive coverage, there would be no insurance on the car for flood damage,āĀ Worters says.
Few owners expect their car will ever be stolen, just as many of the owners affected in the Gulf region didnāt expect their area to flood. Without comprehensive coverage, an owner in either situation is left without compensation for his or her loss.
Myles Mitchom, a spokesman for State Farm Insurance, says drivers should reach out to their insurance agent before a flood or storm to make sure they have adequate coverage for their vehicles, including comprehensive coverage.
āComprehensive is the coverage that kicks into repair or replace a covered vehicle damaged by rising flood waters,ā he says.
How to File a Typical Claim
- Contact the agent or company that sold you the insurance policy to file a claim. Many insurers have disaster response stations or will soon be setting them up in some of the areas that have been damaged. Check to see whether your company has a response team near you.
- Document your property damage with photos and video as soon as possibleāif you can do it safelyāand provide this information to your insurance adjuster.Ā
- Documenting with video or photo is important because each claim presents its own criteria, says April Eaton, a spokesperson for Allstate Insurance. āSuch factors may includeābut not be limited toāthe extent of damage, type of damage, age of a vehicle, make/model of a vehicle, and mileage driven to date on the vehicle in question,ā she says.
- Consumer Reports urges owners to get a claim number and the name and phone number of the adjuster when filing a report. Find out when you can expect to be contacted. Ask for a payout estimate, and how you can limit your out-of-pocket expenses. If youāll need to rent a car, ask for details about reimbursement before you do so.
Set Your Expectations
When faced with large-scale flooding, you may be one of thousands of car owners looking to have your car assessed and either repaired or replaced. Worters, with the Insurance Information Institute, says the process isnāt complicated, but dealing with a natural disaster requires extra patience.
āIf a vehicle was submerged, it doesnāt take an insurance company very long to inspect it and declare it is salvageable or a total loss,ā she says.
If You've Been Displaced
āAll you need to do is make a phone call to your insurance agent or company,āĀ Worters says. āThe companies all have claims departments to help people with storm recovery, and they can walk you through the process. The insurer can access your policy information.ā
If You Don't Know Where Your Car Is
For starters, keep yourself safe and donāt risk making an automobile claim something much more serious. āYou should not take any actions that would put you in danger,āĀ Worters says. āTell your insurer the last location of the vehicle and ask for their recommended next steps. In many situations with flooded cars, the insurer will send a tow truck to retrieve it, as a submerged vehicle that may not start and could be dangerous to drive, particularly if water got into the electrical components.ā
If you canāt find your car, check with the police and any local agencies assisting with cleaning up after a flood. They may have had flood-damaged vehicles towed to an impound lot or storage facility. They should be able to inform you where all of the towed vehicles are being stored.
WortersĀ points out that new technology being used during natural disasters, such as drones, can expedite the process.
āIf you canāt get to your vehicle, ask your insurer if they are using drones, and perhaps they will be able to take an aerial picture of its location as initial documentation of the loss,ā she says.
Be Careful When You Inspect Your Car
Owners should be careful when theyāre finally reunited with their vehicle. When you inspect your flood-damaged vehicle, Herndon suggests you:
- Survey the carās potential damage and note how high the water rose in your car.Ā
- Donāt try to start your car when you get back to it. This will cause more damage if water is in the engine.
- Start drying out your vehicle as quickly as possible, and contact a towing service to get it to higher ground. āQuickly drying a car flooded by salt water is especially important, because salt water is very corrosive,ā Herndon says.
State Farmās Mitchom adds that itās important to contact your insurance agent or the company to say that your vehicle has been flooded. Itās also important to know your own limitations.
āIf you donāt have the right training and personal protective equipment, itās safer, in most cases, to leave the cleaning up to professionals,ā he says. āSome floodwaters contain raw or untreated sewage and other contaminants that may pose serious health hazards during cleanup. The Centers for Disease Control offers more information on this topic.ā