Beware of Buying Flood-Damaged Vehicles

Posted In: Auto Insurance , Natural Disasters / Earthquake Insurance

Found a great deal on a car? The Insurance Bureau of Canada (IBC) warns Canadians to avoid unknowingly purchasing storm-damaged vehicles. Make sure you have your Flood-Damaged car insurance ready before the disaster. After flooding disasters, such as those that occurred in Alberta and Ontario in 2013,  there are attempts by fraudsters to clean up and resell flood-damaged vehicles.

Canadians should be cautious when a deal seems too good to be true and should report any suspicious vehicles to the IBC through the tips reporting program at 1-877-IBC-TIPS.

To protect consumers of Flood-damaged car, IBC, and its member insurance companies have compiled a database of vehicles reported and branded as non-repairable after flooding across southern Alberta and the Greater Toronto Area.

IMPORTANT NOTE: Any vehicle that has been subjected to flooding to the level of the bottom of the dash must be branded as non-repairable and can no longer be operated on any Canadian road. Every Canadian jurisdiction follows these same guidelines.

Click on this free VIN Verify service to check whether a vehicle has been reported as flood damaged and non-repairable by participating IBC member insurance companies.  (A Vehicle Identification Number, commonly abbreviated to VIN, is a unique code to identify motor vehicles.  A vehicle’s VIN can typically be found on the dashboard and door of a motor vehicle.)

VIN VERIFY – click here

NOTE: You will need a VIN to perform a search.

More tips

Here are some other tips to help you avoid getting stuck with a flood car:

  • Select a reputable dealer.
  • Inspect the vehicle for water stains, mildew, sand or silt under the carpets, floor mats and headliner cloth and behind the dashboard.
  • Inspect the interior upholstery and door panels for fading.
  • Check for rust on screws on the console or in other areas that water doesn’t normally reach.
  • Check for mud or grit in the spare tire compartment and alternator crevices, behind wiring harnesses and around the small recesses of starter motors, power steering pumps and relays.
  • Check for moisture, mildew or grime inside the seatbelt retractors.
  • Look under the hood for signs of oxidation. Aluminum and alloys will have a white powder and pitting.
  • Check door speakers, as they are often damaged in floods.
  • Have a certified mechanic inspect the vehicle before buying.
  • Do an ownership history search of the vehicle.
  • Trust your instincts. If a deal seems too good to be true, walk away.

Source:  Insurance Bureau of Canada

Would you like a quote or more information about car insurance in British Columbia?  Please contact Habitat Insurance Agencies at 604-438-5241 or email.  One of our professional brokers will be happy to assist you.  Plus, we offer free delivery of ICBC insurance in the Greater Vancouver area.

Disclaimer:  This article is designed to provide information for personal use only.  Please consult a professional insurance broker for professional advice. Habitat Insurance Agencies Ltd is not responsible for any legal disputes of this matter.