Insurer urges caution on water-damaged cars post-floods

Insurer State has urged second-hand car buyers to exercise caution on possible water damage for some used vehicles. As many New Zealanders are now on the hunt for a replacement car following the extreme weather events, the insurance firm has asked buyers to be smart about what they are checking for in used vehicles.

State, AMI, and NZI have recorded a combined total of 6,200 vehicles claims as a result of the North Island flood and Cyclone Gabrielle, with the insurers saying that around 85% of these are likely to be total losses. In particular, State warned that some uninsured vehicles may be dried out and put up for sale, catching unaware used car buyers.

State is the latest to warn the New Zealand public on water-damaged cars. In late February, the Insurance Council of New Zealand Te Kāhui Inihua o Aotearoa (ICNZ) said that more than 500 cars were added to the written-off registry and have since urged buyers to check the registry to be sure that their potential purchase is safe from flood or water damage.

Investigate the signs

State EGM for claims Wayne Tippet said that the signs of water damage can go beyond just a damp smell or silt in the carpets. Water can also get itself into the engine, braking system, and electrical components of the vehicle, which would then compromise its safety.

Asking extra vigilance against water damage, Tippet also said that it’s a good idea to have any vehicle that buyers intend to purchase inspected by a professional prior to the transaction. Even with really good prices, vehicles with signs of water damage should be treated with caution. For some, entire systems will need to be replaced and certified, which is not only expensive but time-consuming as well.

The written-off registry should have records of vehicles that are no longer roadworthy, and it is always a good place to start for a purchaser’s investigation. State did add that the registry is not comprehensive, meaning that it should not be the only point of reference for those looking to buy a used car. The same can be said for Warrant of Fitness (WoF), as vehicles having it does not mean there is no water damage.

“For us, customer safety is paramount. That’s why any vehicles that have had water enter the interior are generally written off. It can take time for water damage to show itself, so while a car might work now, there are just no guarantees with a flood damaged car that it will continue to be safe to drive. It’s just not worth the risk,” Tippet said.

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