Most people don’t think twice about a spilled water bottle in the car. Maybe you roll your eyes, grab a towel, clean it up and move on. But for one Florida driver, a 20-ounce splash turned into an almost $12,000 repair bill.
Michael McCormick adored his Hyundai Ioniq 5, the all-electric SUV he drove along Interstate 4. But after he tapped the brakes in traffic, the bottle on his back seat launched forward, hit the driver’s seat and sent water toward his ankles (1).
Must Read
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAP
- Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
Minutes later, warning lights lit up the dashboard. By the time he made it home, his turn signals had failed and the car wouldn’t shut off.
At the dealership, the service team delivered the bad news: moisture had damaged the wiring harnesses beneath the seat and floorboard. Sand on the driver’s side may have played a role, too. The fix was replacing the entire floor and driver’s seat wiring system at $11,882.08 — none of which was covered under warranty or insurance.
“I was shocked,” McCormick told WFTV 9’s Jeff Deal. “That’s a huge amount of money and not covered. I’m like, that’s not right, because I didn’t do anything wrong.”
McCormick’s frustration is easy to understand. One moment, he was dealing with a minor spill, and the next, he was staring at a repair estimate bigger than many used cars. But as he soon learned, even a splash in the wrong spot can trigger a chain reaction in today’s tech-heavy vehicles.
A small spill, a big bill
McCormick says the dealership wouldn’t cover the damage under warranty because it wasn’t considered a manufacturer’s defect. Staff blamed “external factors” for the failure.
When that door closed, he turned to his insurer, State Farm, to file a claim. But they denied it too, determining the issue was caused by “corrosion building over time,” not a sudden accidental event.
Denial from two different sources came as no surprise for Action 9’s consumer advisor, Clark Howard, who says today’s vehicles — especially electric ones — are far more vulnerable to expensive failures.
“Cars are so complicated now; fixing them as a result is so much more expensive,” Howard said, adding modern vehicles are “computers on wheels” and are more intricate than the models from 15 or 20 years ago.
The insurance industry is seeing those complexities firsthand. A recent analysis by Mitchell, a major software provider for auto insurers and repair shops, found that electric vehicles cost about 30% more to repair after an accident, averaging $6,066 per claim compared to $4,703 for fossil fuel cars (2). That gap helps explain why, according to the National Association of Insurance Commissioners, electric vehicle insurance premiums can run up to 20% higher than those for traditional vehicles (3).
Read more: Robert Kiyosaki says this 1 asset will surge 400% in a year — and he begs investors not to miss its ‘explosion’
How to avoid a four-figure repair bill
Other Ioniq 5 drivers say McCormick’s experience isn’t a one-off. Some have flagged the same under-seat wiring as a costly weak spot. One Reddit user even titled their post “Ioniq 5 $10,000 Nightmare ‘Time Bomb’ Beneath the Front Seats,” warning other owners about repairs that can climb to five digits.
“Kids are always spilling things in the backseat, or, you know, people,” McCormick said.” You know, there are a zillion cup holders everywhere. Things spill.”
State Farm wouldn’t discuss his specific claim, but told Deal in a statement: “In general, if a vehicle shows evidence of long-term exposure to moisture, such as rot, rust, or corrosion, that type of damage is not covered by an automobile policy. “
Modern cars, and EVs in particular, are impressive feats of engineering. They’re also unforgiving when something goes wrong. That’s why it’s worth putting a few guardrails in place before you’re the one staring at an excessive repair estimate.
One of the simplest protections is an emergency fund. Unexpected car repairs are one of the most common financial blows Americans face, and they rarely show up at a convenient time (4). Even setting aside a small amount each month can mean the difference between paying a bill outright or putting it on a high-interest credit card.
It also pays to revisit your insurance with a very specific lens. Most standard auto policies won’t cover long-term moisture damage, corrosion or anything that looks like wear and tear rather than an accident (5). When you call your insurer, ask key questions like:
- What exactly counts as “sudden accidental damage”?
- Is water intrusion ever covered and under what circumstances?
- How are electronic component failures handled?
- Are OEM parts required and will that increase my out-of-pocket costs?
Finally, take a hard look at your warranty. These documents are known for their exclusions, especially when it comes to electronics, wiring and moisture. If your peace of mind relies on the assumption that the warranty will cover it, it’s worth confirming that’s actually true before a mechanic hands you a $12,000 estimate.
What to read next
- Approaching retirement with no savings? Don’t panic, you’re not alone. Here are 6 easy ways you can catch up (and fast)
- Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich — and ‘anyone’ can do it
- Grant Gardone reveals the ‘real problem’ with US real estate (and what average Americans must actually do to get rich)
- 22 US states are already in a recession — protect your savings with these 10 essential money moves ASAP
Join 200,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
WFTV 9 (1); Kelley Blue Book (2); National Association of Insurance Commissioners (3); Jerry (4); Car Covers (5.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.