Washed Up Cars Coming

Sept. 14 - As Hurricane Ike sweeps inland, the process of rebuilding will begin in affected areas over the next few weeks. Efforts to assess the damage caused by Ike have barely begun, but early estimates suggest the bill could rise to $18 billion.

Over the next several months, you can expect that some flood-damaged vehicles will be repaired and put on the market as used cars, without disclosing the prior damage. Flood-damaged vehicles have a greater risk of premature failure of the structure, mechanical components, engine and transmission and electronic systems of the vehicle, including occupant protection systems, such as airbag components. There may also be health concerns because of mould.

Following similar incidents resulting from Hurricane Katrina, the National Insurance Crime Bureau established a flood damaged vehicle database as a national database for auto resellers and buyers to check a vehicle's history. Inconsistent vehicle registration requirements from one state to another made it possible for a vehicle's past to be hidden. The U.S. National Automobile Dealers Association estimated that 571,000 vehicles suffered damage from Hurricane Katrina.

Today, the NICB Flood Vehicle Database information has been rolled into the new VINCheck service offered by NICB. More than 1,000 insurance companies information about vehicles to the service, including vehicle thefts. VINCheck is available to both consumers and dealers.