Used Car Lots Flooded with Salvaged Vehicles?

Claims News Service, Jan.27, 8:45 a.m. EST -- Northern Californians are being warned about flood-damaged vehicles turning up in the area's used car lots.

According to the California Department of Insurance, around 600,000 vehicles were swamped with flood and storm waters from Hurricanes Katrina, Rita, and Wilma. Many of the vehicles, now dried out and cleaned up, are showing up at used car and auto salvage auction lots. A "salvaged" car has been wrecked or damaged and is considered too expensive to repair by the owner, insurance company, leasing company, or financial institution. Besides California, flood-damaged vehicles also have turned up on lots in Arizona, Florida, New York, and Oklahoma, according to evidence reported to law enforcement and insurance crime bureau authorities. A process called "washing the title" transfers the car's title through several states until the salvage designation eventually is left off of the ownership documents. Because of this, bargain-hunting auto shoppers have no idea the car was marked as salvage. California Insurance Commissioner John Garamendi urged used car shoppers to be wary of flood-damaged vehicles from Louisiana, Mississippi, Alabama, Florida, and Texas, and shipped to other parts of the country. He suggested searching for a vehicle's VIN number on the National Insurance Crime Bureau's online database before purchasing it.