Hurricane Ida: Owners of flooded cars may be unable to recoup their losses, even with insurance

Shutterstock

NBC News -

Residents across the country are still mopping up from the remnants of Hurricane Ida, which hit the Gulf Coast before sweeping up into the Northeast, leaving parts of New York City and its suburbs under water this past week. 

Dozens were killed, many after being trapped in their cars by flood waters. News and social media from across the New York-New Jersey region show cars that were abandoned along major highways as well as neighborhood streets. 

The flooding from Ida caps a summer season that has left many parts of the country waterlogged. That, in turn, has created major headaches for car owners — and car buyers. Thousands of vehicles have been seriously damaged or completely ruined. But many owners soon could find that, despite carrying insurance, they are out of luck when it comes to recouping their losses. 

In the months to come, meanwhile, some of those flood-damaged vehicles may show back up on the used vehicle market through an appropriately named scam known as “title washing.” Someone buying one of those vehicles could be in for a number of headaches. 

When a vehicle is submerged, it is subject to developing all sorts of issues, starting with mold. Body panels and other components can rust. Water can damage engines. And then there are all the electronic circuits that control everything from power windows to a car’s safety and infotainment systems. They can suffer intermittent or complete failures. 

"A car that's been in a flood, with the engine emerged for any length of time, will never be the same," said Carl Sullivan, a veteran inspector for California-based AiM Mobile Inspections. 

Drying out a car as quickly as possible, especially if it’s been submerged in salt water, is critical, Sullivan and other experts stress. They also warn drivers not to immediately try to start up a vehicle after a flood, especially one where water might have gotten into the engine. That could lead to a catastrophic failure known as hydrolock. Instead, find a repair shop trained in dealing with water damage and have the vehicle towed in. 

Motorists should take detailed pictures that can help support an insurance claim. Unfortunately, many owners discover too late that their coverage doesn’t include flooding. 

“If you want to be covered for flood damage of your car you’re going to need comprehensive coverage which takes in acts of god such as hail damage or flood damage,” said Mark Fitzpatrick, an analyst with website MoneyGeek. 

If your vehicle is new and still covered by a loan or lease, Fitzpatrick noted, you likely carry comprehensive insurance, as it’s normally required as a part of your agreement. But older vehicles that have been paid off, he added, often have just the more minimal insurance coverage most states require. In that case, repairs — or even the replacement of the entire vehicle — may have to come out of pocket. (Read more)

Copyright 2021, Sunking278. Stay up-to-date: Twitter – @Sunking278 and Facebook – click here.