As many as 100,000 insured cars and trucks were damaged by recent flooding in south Louisiana—and that’s only counting cars and trucks that were insured—according to a new estimate from Illinois-based National Insurance Crime Bureau, a nonprofit that works to prevent, detect and defeat insurance fraud and vehicle theft.
“The number of uninsured vehicles that were flood-damaged may be even more than the number of insured vehicles since many owners choose to drop their policy’s comprehensive coverage as the vehicle ages,” NICB says in a statement issued this morning. “Flooded vehicles that did not have insurance coverage are a major concern as they are frequently cleaned up to hide the damage and then sold to unsuspecting consumers with no indication of a problem.”
Once an insured vehicle is determined to be flood-damaged, it’s typically towed to an auction facility and processed with a new title that indicates that it has been flooded, the bureau says. In some cases, a certificate of destruction is required so the vehicle can be crushed, or sold to a company that will dismantle it for parts.
And even though Louisiana enacted legislation to protect consumers from buying flood-damaged vehicles after Hurricane Katrina, uninsured cars and trucks are a major concern, the bureau says.
Louisiana Commissioner of Motor Vehicles Karen St. Germain warns that uninsured flood-damaged vehicles could end up in the market.
“It’s buyer beware,” says St. Germaine, who warns those in the market for a used car both in state and across the country to do their homework before putting any money on the line. Prospective buyers should carefully inspect vehicles for water stains and mildew, as well as heavy aromas of cleaners and disinfectants. They should also get a vehicle history report and have a trusted mechanic inspect the car, the bureau says.
