Did you know that if a vehicle is flooded and is no longer operable insurance companies settle the claim by buying the vehicle and selling it as a ‘salvage’ at an auto auction. Some dishonest dealers that purchase these water-damaged vehicles can then clean up the vehicle but still leave hidden flood damage. Which means that your insured could be purchasing a used vehicle that is in poor condition. Carfax suggests that more than 271,000 cars reported as flood damaged are now back in use from this year alone.
Property Casualty 360 did an article recently on tips of things to watch out for on buying a potential used flood damaged vehicle. Please refer to this article so you may be informed.
A site open to the general public to see if they could be buying a flood damaged vehicle by checking the VIN’s is VINCheck – https://www.nicb.org/theft_and_fraud_awareness/vincheck . Since 2005 flood damaged vehicles are now included in this database.
No one wants to be a victim of fraud, and the ways to perpetuate fraud are ever increasing in their methods. Help your clients avoid fraud by being informed and fully checking out used vehicles before purchasing them.
(Photo: Gerald Herbert/AP Photo)