Insurers also may not be willing to provide comprehensive and collision coverage on flood-damaged vehicles because the insurer can’t be sure of the vehicle’s value or how complete any repairs are, Altman added. Getting a loan for a vehicle without full comprehensive and collision coverage is nearly impossible, so consumers would likely have to pay cash for the vehicle, she explained.
Consumers can use the National Insurance Crime Bureau’s VINCheck database to see if the vehicle had a claim for flood or other damage filed.
Consumers can also check reference services, such as the National Motor Vehicle Titling Information System (NMVTIS). NMVTIS is overseen by the U.S. Department of Justice and is designed to protect customers from fraud and unsafe vehicles and to help keep stolen vehicles from being resold. NMVTIS is the only publicly available system in the country that requires all insurance carriers, auto recyclers, junk and salvage yards, and states to report vehicle history information, according to the release.
Source: Pennsylvania Insurance Department