[Insurance Tip ④] My Car Flooded by Heavy Rain... How to Ensure Proper Compensation

On the 18th, flood-damaged cars are parked at the temporary storage lot for flood-damaged vehicles at Seoul Grand Park in Gwacheon-si, Gyeonggi-do.
[Image source=Yonhap News]

[Asia Economy Reporter Changhwan Lee] More than 11,000 vehicles were flooded due to heavy rain that fell in the central region in mid-month. The estimated damage amount reaches 160 billion KRW.

This year’s flood damage to vehicles is said to be the largest since related statistics began to be compiled. That means many car owners suffered significant damage from this concentrated heavy rain.

In this installment of Insurance Knowledge, we have summarized situations that may arise from vehicle flooding, including flood damage compensation, how to respond when a vehicle is flooded, and tips for purchasing used cars.

Compensation Possible if You Have Own Damage Coverage Even If Flood Damage Occurred

If a vehicle is damaged due to flooding and you have subscribed to the 'Own Vehicle Damage' coverage in your auto insurance, you can receive compensation for vehicle damage from the insurance company.

The Korea Insurance Development Institute has identified representative cases eligible for compensation, such as vehicles damaged while parked in a parking lot due to flooding, vehicles damaged by typhoons or floods, and vehicles swept away by water while passing through flood areas.

Car owners who suffered flood damage need to promptly contact their insurance company to receive damage compensation services. Insurance companies have even formed special task forces to provide quick services including towing and compensation for summer flood damage.

However, even if you have auto insurance, if you did not subscribe to the 'Own Vehicle Damage' coverage, it is difficult to receive compensation. Also, note that compensation may be difficult if rainwater entered through open doors or sunroofs.

If your vehicle is completely damaged by flooding and you purchase another vehicle, you can receive a reduction in acquisition tax and registration tax by attaching a total loss certificate issued by the head of the Korea Insurance Development Institute, which can be directly obtained from your insurance company.

Vehicles damaged by flooding due to continuous heavy rain are parked at a temporary compensation service center set up by an insurance company in the parking lot of Seoul Grand Park in Gwacheon, Gyeonggi Province.
[Image source=Yonhap News]

How to Respond When Your Vehicle Is Flooded

If puddles have formed on the road due to heavy rain, it is best to avoid them if possible. If you must pass through, proceed slowly in 1st or 2nd gear at 10?20 km/h.

After passing through, drive slowly and lightly apply the brakes several times to dry the wet brake lining so that the brake performance can be fully exerted.

When driving through water that has risen to the bumper, shift to low gear (1st or 2nd) beforehand and pass through in one go. Do not change gears or stop midway. Water entering the muffler can cause the engine to stall.

If your vehicle stops or is parked in water, do not start the engine or operate any devices; immediately contact a workshop and have the vehicle towed.

Starting the engine when water has entered the engine can cause water to enter surrounding components and cause friction damage to the engine, resulting in severe damage.

The biggest aftereffect of flooding is vehicle corrosion. If your car has been flooded, it is advised to thoroughly dry and coat it to avoid severe price drops in the used car market and suspicion of flood damage.

If the repair cost is comparable to the used car price due to severe flooding, it may be better to give up the car and receive insurance compensation. If the engine is flooded, the engine and surrounding parts must be completely disassembled and repaired before driving again, which can be costly.

On the 9th, vehicles that were submerged due to heavy rain in front of Jinheung Apartment in Seocho-gu, Seoul, are now emerging as the water recedes. Photo by Jinhyung Kang aymsdream@

How to Avoid Flooded Cars When Buying Used Cars

After a large number of flooded cars have appeared, used car buyers are concerned about flooded cars entering the used car market.

It is known that many flooded cars have been covertly introduced into the used car market, causing many victims.

Experts suggest several ways to avoid flooded cars.

First, you can use the 'Free Flooded Vehicle Check' on the Korea Insurance Development Institute’s Car History website by entering the vehicle number or chassis number to check if the vehicle has been flooded.

In most cases, flooded cars are processed through auto insurance if they have own vehicle damage (own damage) coverage, leaving a 100% record, which this method utilizes.

An official from the Korea Insurance Development Institute said, "The number of flooded vehicles processed by insurance is expected to increase significantly due to the recent heavy rain in the metropolitan and central regions. You can check flooded cars for free using Car History."

It is also good to check the vehicle performance inspection record and include compensation clauses separately in the contract when purchasing.

If you purchase a used car from an official dealer, and the dealer falsely discloses flood damage which is later revealed, you can get a 100% refund under the Automobile Management Act.

Including a special clause in the contract stating "compensation will be provided if flood damage is revealed" is also a reliable method.

You can verify whether a dealer is official by searching on the Korea Automobile Dealers Association Federation website menu, and you can also directly check the dealer’s employee ID and identification card at the sales site.