Water-Logged Cars Making Their Way onto Used Car Lots Everywhere
March 27th, 2006 by Penny Hagerman
Following 2005’s hurricane season, thousands of cars began flooding (pun intended) used car lots all over the nation.
South Dakota’s attorney general is now joining the ranks of authorities warning citizens to purchase used cars cautiously, reports today’s Insurance Journal. Those who unknowingly buy one of these vehicles may face costly repairs or dangerous malfunctions of major operational systems.
Although I’ve never experienced it (and hope I never have to!), losing my brakes or having my car come to a dead stop in early-morning traffic is not my idea of a good time.
So what effect do all these flooded cars have on the insurance industry?
They represent a glut of potential claims–big ones.
What can be done about it?
Encourage your customers who are purchasing used vehicles to go online and do some research. To make sure the car they’re considering buying hasn’t been damaged by flood, they should:
The moral of the story: Encourage your customers to do their research when purchasing and insuring used cars. We should all make sure we know what we’re getting before we drive away!
[For more info on this story, check it out here.]
Happy Monday!
