A recent study by Carfax shows that waves of flood damaged cars are appearing across the country.
According to the results, the number of waterlogged wrecks revealed by Carfax vehicle history reports has doubled nationwide over the last five years. Furthermore, massive increases have occurred in numerous states (see Flood Damage Growth, By State).
According to Carfax, water can fatally damage a car's most important features, such as the electrical and safety systems. This can cause airbags and antilock brakes to malfunction, effectively turning the car into a ticking time bomb. The issue has gained traction in the public due to recent above-average hurricane season, and has led to governmental action.
“In the aftermath of Hurricane Katrina, an unprecedented effort was made by the auto industry to identify, process and report these vehicles, as well as warn consumers about the dangers of flooded cars,” said Larry Gamache, communications director at Carfax, in a release. “Our data shows a clear pattern of growth for those states within close proximity to the Gulf Coast or that have large populations and sprawling urban areas. Flooded cars are indeed on the move and consumers everywhere are at risk.”
Mississippi Senator Trent Lott reintroduced a bill last month that aims to make identifying these flooded cars easier for consumers. The bill, “Consumer Access to Total Loss Vehicle Data Act,” requires insurance companies to commercially disclose information pertaining to total loss vehicles, through various sources including online auto services like Carfax. Information to be included would consist of the reason for the total loss (flood, collision, stolen, etc.), the date of total loss, the odometer reading on that date, and whether or not the airbag deployed.
“The insurance industry should make this information available to protect the consumers, and we will be working to enact that protection in the 110th Congress,” said Lott, in a release on his web site. “Buyers are entitled to truthful titles and complete information about a vehicle's history.”
Senator Lott first introduced his bill last year, but no action was taken before Congress adjourned.
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