Flood salvage vehicles have been paid off as total losses by insurance companies after being flooded. Their titles are invalidated so legally they no longer exist, according to LeaseGuide.com.
Salvage Titles
An insurance company that declares a flooded car "totaled" pays it off and becomes its owner, according to Lease Guide. The company then tries to sell the vehicle at a salvage car auction. Flood salvage vehicles may or may not be good value. Some can be restored to good working condition as rebuilt salvage vehicles.
State Regulations
Many states require flooded vehicles to have a special salvage title, but other states will give them a regular title. A dishonest dealer might take a flooded car to another state and try to sell it with a clean title.
Buyer Beware
To protect against dealer fraud after flooding events, a prospective car buyer should be on the lookout for water damage, rust, and musty odors in the trunk, under the carpets, seat, dashboard and hood. The buyer should also obtain a vehicle history report.
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