When the Waters Subside -- The Issue of Flood Damaged Cars

At least one insurance company is trying to do something about disclosing motor vehicle histories. PEMCO, in Washington, recently announced that it would voluntarily disclose vehicle flood damage information to the public.

"You would never consider dunking your home computer in a bathtub and then expect it to work. Cars contain computers that are just as complex," Jon Osterberg, PEMCO's spokesperson, said.

Osterberg also noted that water can cause widespread damage to a car. It can corrode air-bag controllers and electronics, contaminate lubricants, and threaten mechanical systems, making the car dangerous to drive.

The National Automobile Dealers Association has even gotten in on the act. The NADA supported House bill (HR 6093) would rely on existing technology to permanently "red flag" totaled vehicles. The legislation would require insurance companies to make commercially available: the Vehicle Identification Number (VIN) of a totaled vehicle, the reason for the total loss (flood, collision, stolen, etc.), the date of total loss, the odometer reading on that date, and whether the airbag deployed. Senator Trent Lott (R- MS) has introduced a similar bill (S. 3707), pending before the Senate Commerce Committee, which recently added new backers.

About 5 million vehicles were totaled out last year by insurance companies because of extensive damage, flooding, or theft. Thousands of those damaged vehicles are thought to have been resold at salvage auctions and later rebuilt and sold again with "clean" titles.

How can you identify a flood damaged vehicle? In addition to purchasing CARFAX and AutoCheck vehicle history reports, we recommend you take the following steps to protect yourself and your family from buying a flood car: Take the vehicle to a trusted mechanic for an inspection before you buy it. Professionals know how to spot signs of water damage that are invisible to the untrained eye.

And there are some things you can do if you inspect the car yourself...

• Smell for any musty odors. If it smells bad, it just might be bad!
• Look for a clear line or watermark on the interior and exterior of the car. You might want to remove a door panel to see if there's a watermark inside.
• Look for mud or debris on the bottom edges of brackets or panels where it couldn't naturally settle.
• Inspect the car in difficult-to-clean places, like the gaps between panels in the trunk and under the hood, where water-borne mud and debris might still cling.
• Check the seat mounting screws to see if there is any evidence they've been removed. If the carpeting doesn't match the interior right or if it fits loosely, it might have been replaced to get rid of smelly, moldy ruined carpeting from a flood.
• Check the rubber drain plugs under the car and on the bottoms of doors. Look for any signs they might have been removed recently. Open them up and look to see if there are signs of mud or debris inside.
• Flex a few wires under the dashboard to see if they bend or crack. Wet wires become brittle after drying and can crack or fail at any time.
• Look at the heads of any unpainted, exposed screws under the dashboard, inside the car. Unpainted metal in cars might show signs of rust.
• Test the lights (interior and exterior). Old flood water lines might still show inside the light lenses or reflectors. Start the ignition and make sure all accessory lights, warning lights, and gauges are working. Specifically look at the ABS and airbag lights.
• Test the windshield wipers, turn signals, cigarette lighter, radio, heater, and air-conditioner several times to make sure they work. Look carefully at the dash instrument cluster to see if there are any water stains or marks inside the glass.
• Last, make the seller give you a guarantee that the car was not in any flood ... have them write it out and sign it. If the seller won’t do that, then be suspicious and don’t buy from them. laws.