Identifying a Car That Has Been Damaged by a Flood

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(iSeeCars) – Flood waters can damage more than 100,000 cars in the U.S. in any given year. Natural disasters and heavy rain often lead to compromised infrastructure, flash floods, and a literal rising tide of flood-damaged vehicles. Most of these flooded vehicles go through an insurance claim process that properly identifies a car’s water damage. If the cost to repair the damage is more than the car’s market value, an insurance company will declare the car a “total loss” and (if the vehicle has a comprehensive coverage insurance policy) pay the owner its current market value (minus the deductible).

What Happens to Flood Damaged Cars that are Declared a Total Loss?

When a car is classified as a total loss the insurance company will usually take possession of the vehicle and sell it to either a junkyard or repair shop. The insurance agent also brands the car’s title as a “salvage title” to provide a clear indication of the car’s significant past damage. The salvage classification is tied to the car’s vehicle identification number (VIN), and should appear on any title search activity or vehicle history report related to the car.

Can a Car’s Flood Damage Be Hidden From Future Buyers?

Sadly, it’s possible to conceal a car’s flood damage from potential buyers. The process, known as “title washing” in the automotive world, is illegal. But it still happens when unscrupulous sellers buy a flood damaged car for a low price at an auto auction, work to conceal the damage, and then move the vehicle between two states where the car’s title can be “washed” of its past title status. This can turn a salvage title into a clean title in the new state.

Federal agencies like the National Insurance Crime Bureau (NICB) and the National Motor Vehicle Title Information System (NMVTIS) work to track and prosecute title washing activity, but unsuspecting buyers should be aware of this potential fraud and perform a minimum of due diligence when shopping for a new or used car.

What Does Flood Damage Do to a Car?

When a vehicle is flooded with water it can cause a wide spectrum of problems. Increased rust and corrosion are the most obvious concerns, but damage to the electrical system is the most insidious. Water and electronics don’t mix, and when they do, you can expect ongoing, long-term problems. Modern cars are particularly reliant on advanced technology, with everything from the climate control system to the antilock brakes to the airbags failing when a vehicle’s electronics are compromised by water damage.

Beyond the rust and reliability issues, a flood-damaged car will prove more difficult and require higher premiums to get insurance coverage. It’s also possible that car insurance companies may not offer full coverage or comprehensive insurance on a vehicle with a salvage title. Insurance adjusters will take this into consideration on any future car insurance claims and when determining the car’s actual cash value for any future payouts, both of which will be substantially lower on a salvage vehicle compared to a car with a clean title.

Identifying a Flood Damaged Car

The first step to identifying a flood damaged car is performing a flooded car VIN check. You can do this by acquiring a report like iSeeCars’ Vehicle History report. This report offers a wide range of vehicle information, including title problem checks, salvage and junk checks, accident check, market value analysis, depreciation analysis, lifespan analysis, recall and theft history, and much more. If a used vehicle has a questionable past or a compromised title status, a vehicle history report is the first step to spotting it.

However, as mentioned above, while a vehicle’s title and history report should identify past issues related to flood damage, it might not if the car’s owner never reported the damage to an insurance company or if the car was moved across state lines and a past title brand was washed during the process. If this was done, even a dealership might not know about a used vehicle’s past damage. While private sellers are the main source for fraudulent title activity, car buyers should not assume a vehicle on a dealer lot can’t be a flood damaged car.

Telltale signs of flood damage can be obvious, like mildew or water stains on the carpet and upholstery, or an actual water line on the car’s body or interior door panels. But don’t expect the evidence to be that obvious. Fraudulent sellers will clean up obvious signs of water damage and use air fresheners to hide musty odors, requiring buyers to look for more subtle hints. These include signs of rust and corrosion in areas that aren’t (or shouldn’t be) exposed to moisture. The spare tire compartment in the trunk or low-lying crevices under the carpet are two examples.

Under the hood is another area to check for signs of water damage. While this area isn’t completely sealed from outside elements, it’s unusual for a modern vehicle to have signs of flaking paint or corrosion high in the engine compartment. Also remember that water is particularly destructive to a vehicle’s electrical system, so if a relatively new vehicle has taillights that don’t work, an alternator that isn’t charging, or various warning lights on the dash, it could indicate flood damage.

Buyer Beware

Taking a “buyer beware” approach when vehicle shopping can protect you from a wide range of potential problems, including a flood damaged car and the mechanical headaches or car insurance policy complications that come with them. A vehicle history report and pre-purchase inspection by a capable, independent shop are two relatively small yet worthwhile investments in peace of mind when buying your next car.