McKayla Girardin, Car Insurance Writer
@mckayla_girardin
No, a car is not automatically totaled if it is flooded because whether a car is totaled depends on the extent of the damage and the state’s laws on flooded vehicles. Normally, a vehicle is totaled if the cost of repairs is more than the vehicle’s actual cash value, but many states have a lower bar for flooded vehicles. Water damage can lead to serious issues moving forward.
When a Flooded Car is Considered Totaled
- A flooded car may be considered totaled if the cost to repair the vehicle is simply more than a certain percentage of the vehicle’s actual cash value. For example, in Illinois, a flooded car is totaled if the cost to repair the vehicle is more then 50% of the vehicle’s actual cash value.
- Some other states use a total loss formula to decide if a flooded car is totaled. The formula is a comparison of the vehicle’s actual cash value to the sum of its repair costs and salvage value.
- Some states, such as Arkansas, use a different metric to determine when a flooded car is totaled. Arkansas declares a car a total loss if it was submerged in water that reaches above the dashboard, regardless of how much the repair costs may be.
- A flooded car is even more likely to be considered totaled if the vehicle was not worth much before the accident, or if it is a type of vehicle that is typically very expensive to repair, like luxury or electric vehicles.
- Older vehicles are more likely to be declared a total loss because of their diminished value.
- Your insurance company and your insurance adjuster, following state laws and guidelines, will decide if the vehicle is totaled based on an investigation.
To learn more, check out WalletHub’s guides to totaled cars and state total loss thresholds.
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