Tough news buddy, you're f*cked... (Look at viewtopic.php?f=4&t=984)
That same situation happened to me to the letter (except I didn't try doing the oil stuff, I just knew it was messed up)...
I had a CAI too, with a bad air filter, and it was just after a heavy storm and I took a side road that had a bit of a dip, and I went into it at about 15 mph and didn't even notice it until I hit it, was about 2' deep. Couple of seconds later the engine just stopped... I sucked about 3 gallons of water into my engine...
Long story short I went to my auto shop and the water was everywhere! When I mean everywhere I mean more than just the oil areas... The reason why it won't start back up for you is because... The water is literally stuck inside your pistons and crank case and they won't move because the water cannot escape like air. Bottom line is again, you're f*cked.
On another note, I got it taken care of, for a mere $1100 and a week waiting, but I got it back better than new! They totally blew the sh*t out of it and all the carbon, particles and everything else that builded up over time and was removed.
And no your insurance won't cover it, first off you would need deductibles, second unless it's an option, no insurance company would cover you for adding "un-standard" features to your car, and considering how you used a CAI, the answer would be "no"... You might be able to sneak the stock one back on and say you went in a really deep puddle but how often do you see one like that?
So the life lesson is....
DO NOT EVER EVER HAVE A CAI WITHOUT THE PROPER REDUNDANCIES AND PROTECTION, IN FACT, DON'T HAVE ANY KIND OF UNIVERSAL CAI PERIOD, YOU WILL GET F*CKED EVENTUALLY IF IT'S NOT SPECIFICALLY FOR THE AVEO... CAREFULLY CONSIDER THE LEVELS OF RISK/REWARD YOU ARE WILLING TO ACCEPT BEFORE DECIDING ON USING ONE.