Is my flood-damaged car a write-off?

The recent flood events in south-east Queensland and eastern NSW have affected thousands of Australians by not only destroying their houses – but also their cars.

To date, almost 20,000 motor vehicle insurance claims have been lodged as a result of this natural disaster. Many of these cars will never be driven again. So how can you tell if your car is a write-off after being stranded in flood waters?

If you are sure that water levels never even rose enough to touch anywhere underneath your car and that all of the interior is dry, you are reasonably safe in assuming the car will not be damaged.

Suncorp Group, whose portfolio includes key Australian car insurance brands such as AAMI, Bingle, GIO and Shannons, recommends that when you check for water damage, look where the water level has risen on your car (debris or mud may be visible surrounding the car).

Suncorp also says to open your bonnet and inspect for water in the engine or check underneath the car for debris that might have built up.

If you have comprehensive insurance, the priority is to contact the insurance company to inform them and find out what they want you to do.

Given that flood damage can be serious, the insurer will usually arrange for the vehicle to be towed to an assessment centre. Given the high volume of claims at the moment, it may take a while to reduce the backlog and get to your car.

That’s why many vehicles stricken by the recent floods remain parked exactly where they were parked or washed up.

In the meantime, even if the water has even only just reached the car’s door sills, don’t simply jump in and try your luck starting the car.

RACQ claims general manager Trent Sayers told the ABC: “People whose cars have been flooded should not attempt to start or drive the vehicle as water may have entered internal components, including electrical components and contaminated fuel and oils”.

The main problem with a modern car exposed to flood waters is the potential for damage in the myriad electrical systems, even if not immediately obvious.

According to Anna Cartwright, Executive General Manager of Motor Claims, Suncorp: “Water damage can cause significant impacts, including total loss, particularly if any electronics are damaged.

“Even if the vehicle is drivable right now, there may be more serious damage that we need to inspect. The full extent of damage and necessary repairs may only reveal themselves over time so it is important to get it checked if flood-impacted.”

If your car is trapped in rising flood waters, you can try to reduce electrical damage by disconnecting the negative battery terminal before waters rise beyond the sills – often easier said than done.

If it’s too late, after the water has receded, it is best to follow the insurance company’s advice on what they want you to do next.

If uninsured, or if your insurance company approves these steps, then there are a few things you can do to try to minimise flood damage.

Don’t go ahead if the water has not receded or there is debris blocking the car. Before approaching or opening the car, keep a look out for snakes or other wildlife that may have taken refuge in or around the car.

Open the car if you can (which may not be possible if it’s a keyless entry model), get access to the battery and disconnect the negative battery terminal. This will possibly reduce further damage to the electrical systems.

Ensure the car is in gear if it’s a manual or has Park engaged if it’s an automatic. Then release the park brake so that the brake pads don’t stick to the rotors (or drum linings to the drums with a drum park brake). You may need to use the emergency manual release lever if the car has an electronic park brake.

Open all doors and the bonnet and boot to air out the car if the weather is dry. Given the circumstances, the authorities are unlikely to enforce the legal requirement that you be within three metres of your car when it is unlocked. But it makes sense to ensure your car keys and personal belongings are removed from your car if you can’t stay nearby.

Get your car towed to a mechanic as soon as possible (be aware that your insurance company may or may not approve temporary repairs up to a nominal amount).

Depending on the damage assessment, your mechanic may decide there’s a chance that the car can be saved.

According to the NRMA: “Key safety components such as steering and brakes will need to be tested, all fluids will likely need to be drained to combat contamination and all cooling and ventilation systems must be checked for debris.

“Petrol engines typically need to be hand-turned with the spark plugs removed to drain fluid from the cylinder chambers but diesel blocks require more complex solutions.

“Transmissions must be checked and overhauled if necessary before attempting to start the engine, while wheel bearings also need to be attended to if affected by moisture.

“Water-affected electrical components can start working again when dried out (usually after dismantling and cleaning) but there is a long-term risk of corrosion-related reliability issues.”

Soft interior trims such as seat upholstery, carpet and underfloor insulation will very likely need to be removed from the car, washed and dried.

While electric vehicles usually have sealed electric drive motors and battery packs (and do not have the water ingress issues of an internal combustion engine), there are still plenty of wiring harness connectors in these cars that could short-circuit and start a fire.

Seek advice from your insurer first and then, if necessary, seek information from your EV or hybrid manufacturer on what to do after exposure to flood water.

The term write-off is one linked to comprehensive car insurance. But if your flooded car was not comprehensively insured, it may still be deemed unroadworthy as a consequence of flood damage, even if it’s not technically a write-off, in the eyes of the law for registration purposes.

In this case, it is best to seek the advice of a mechanic to see whether the car can be economically and safely repaired to roadworthy condition or not.

A flood-damaged car that is comprehensively insured will be inspected by an insurance assessor. If the assessor deems it a ‘total loss’ and therefore a write-off (either because it is no longer safe or it is not economic to repair it), it can be classed as either a repairable write-off (the insurance company decides that the car is repairable, but costs would be excessive) or a statutory write-off (the insurance company deems the car will never be safe to drive, even if repaired).

Cars only up to 15 years old are noted on the Written Off Vehicle Register (WOVR), which can mean that they can never be legally registered again. A vehicle classed as a statutory write-off can never be re-registered in Australia, while a repairable write-off can be re-registered after the required repairs are done and inspected.

Note that a car deemed a repairable write-off in one state cannot always be re-registered in another state, even if it is repaired and authorised for registration in the state in which it was written off.

An insurance assessor, when looking at flood damage, has many factors to consider. According to Cartwright: “Motor assessors will look for evidence of the water entering the vehicle interior or ingestion into the engine to determine if the vehicle is repairable or not.”

Many insurers offer an insurance value that you and the company agree to at the start of the policy. That ‘agreed value’ is usually based on a valuation range your insurer has for your car’s make and model and you agree to a set amount within that range.

Be aware that at renewal time, the agreed value may change and it is up to you to note and accept the change, if any, before renewing the policy.

The alternative to agreed value is market value, which is decided by the insurer as the value of your car just before a (in this case flood damage) claim. This option usually attracts a lower premium than agreed value does, but it also can result in a lower total loss payout amount.

Even if your car is a total loss and the insurance company pays you out, note that you typically lose any balance of the insurance premium remaining on that car and any applicable excesses will be deducted from the settlement amount.

Whether you need to replace a written-off, flood-damaged car or are simply now in the market for a new car (in either case you’ll likely be faced with a long wait and high prices in the current market climate), be aware of the dangers of buying a car that has itself been in the floods.

Some of these vehicles – if uninsured, deemed a repairable write-off or more than 15 years old – can turn up on the used market.

“In a market like this one where there is a shortage of new car stock and where used cars are not plentiful, if the deal looks too good to be true it probably is,” Motor Trades Association of Australia (MTAA) CEO Richard Dudley told the ABC.

“Take great care and make sure you try and find out the history of the vehicle, where it has come from, who serviced it.

“We have seen cars that have been impacted on the east coast with the floods turn up in Western Australia.”

Always carry out a registration and history check, and be suspicious of any mud/dirt residue or water ‘tide’ marks inside.

The NSW and Queensland governments have offered relief for motorists either living in or visiting locations such as south-east Queensland and parts of NSW that have been declared a national disaster area.

For example, driver’s licence replacement or registration plate replacement may be free, while the fees associated with cancelling the registration of, in this case, a flood-damaged written-off car may also be waived.

The registration transfer fee for a replacement vehicle may also be waived. For clarification of the disaster relief offered in your state, click here for NSW and here for Queensland.

What to do if your car has been in flood water: