According to the Insurance Information Institute (III), the effects of Hurricane Irene significantly increased the risk of unknowingly buying a flood-damaged car. While it is illegal to hide a vehicle’s history of flood damage, some unscrupulous resellers will do so, obscuring the facts and cleaning up any noticeable defects.
Complications of Flood-Damaged Vehicle Sales
The National Insurance Crime Bureau has also warned consumers about this problem, noting most consumers lack the training and knowledge to spot a flood-damaged vehicle. As a result, they can be defrauded by a resale which falsifies or conceals paperwork and facts. If stuck with a flood-damaged car against their will, drivers may find themselves forced to choose between spending more on another vehicle, costly repairs or driving unsafely.
Proper disclosure of a vehicle’s defects is required by law. Vehicles which have been through a flood are often marked down to low prices reflecting that fact, whether disclosure is given or not, which can entice buyers into making an unwise purchase.
Signs of Flood Damage
According to the III, some telltale signs can give away the fact that a vehicle was damaged in a flood, so used vehicle buyers in areas affected by Hurricane Irene should be especially watchful for rusted screws and other metal parts. Discoloration is another common effect, so if the door panels or seatbelts look wrong or the upholstery is stained or faded it may be a clue.
A car with mold, mildew or similar problems will tend to develop a smell that reveals the fact. When trying to resell such vehicles, it is common to cover the odor with deodorizer or something else that smells strongly. Vehicles that were flooded often have debris, silt and mildew under trunk carpeting or near the engine compartment. The NICB notes speakers are generally damaged by flooding, and moisture or dirt may linger inside seatbelt retractors. Alloys may be pitted and copper or ferrous metals be visibly rusted.
Avoiding Flood-Damaged Vehicles
Beyond looking for signs of damage, buyers can take other steps. Dealing with commercial sellers rather than private individuals can provide some protection, and the NICB recommends conducting a title search of the vehicle. It may also be appropriate to inspect title and ownership papers for salvage fraud and hire a certified mechanic to inspect a car before purchase.
The NICB’s Vehicle Identification Number database can be accessed to determine whether a specific vehicle has been involved in claims processing by many auto insurance companies, which could provide the needed information. When a vehicle is damaged in a flood, comprehensive coverage policies may cover repairs, though specifics vary by insurance provider.