While we have seen a lot of positives come from the recent flooding–neighbors helping neighbors, schools busing kids to flood zones to help sandbag, businesses opening their arms to fellow businesses–there are still reports of scammers trying to take advantage of these disasters. One area long after the flood that people may not consider is the sale of flood-damaged vehicles.

By definition, a flood vehicle has been completely or partially submerged in water to the extent that its body, engine, transmission or other mechanical component parts have been damaged. If the vehicle is so damaged that it is no longer operable, the driver’s insurance company settles the claim by buying the vehicle and selling it as a “salvage” at an auto auction, according to the National Insurance Crime Bureau.

Here are a couple ways that scammers try to take advantage of a bad situation:

*Title Washing: switching or cloning VINs from a clean car to a flood vehicle. Also, when someone sells a car with a salvage title in a state with fewer title standards.

*Hiding Flood Damage: sellers dry and clean a vehicle and make it appear to be in good working order, and then sell it in an area unaffected by a flood.

To check a vehicle for flood damage: look for water stains, musty odors, brittle wires, mud in the glove compartment or under seats, damp carpets.

To avoid fraud: buy from a reputable dealer; ask specific questions about the vehicle’s history; check the vehicle’s title.

 

(Info came from “How to Avoid Becoming A Victim of ‘Flood Vehicle’ Fraud” from www.propertycasualty360.com)