Petruzelo Insurance
Beware the salvaged vehicle

The lasting impact of Hurricane Sandy will be felt for years to come but in the immediate aftermath comes a new warning from several state departments of insurance regarding the problems with damaged vehicles that are issued salvaged titles. It is estimated that more than 200,000 vehicles were affected by Sandy including water and salt damage. These vehicles may be issued a salvaged title meaning the vehicle has been severely damaged and/or deemed a total loss by an insurance company that paid a claim on it.

However, titling laws differ from state to state and insurance companies are warning car buyers to be on the look-out for cars that have been recently re-titled in a new state that may have been one of the many water damaged vehicles from the New Jersey and New York area. By re-titling the vehicle an owner can remove the salvage restrictions that often include not being able to have physical damage coverage on the vehicle.

Water and salt damage isn’t always visible on a vehicle. Most of the times the problems that occur happen underneath the vehicle and car buyers don’t always check that area when looking at a car. This means that a re-titled car that has significant water damage can be sold in another state and the buyer may have no way of knowing until after the fact when the car starts to falter. Not only will you be stuck with a damaged vehicle but it may be re-classified as salvaged and cancel any liability or physical damage coverage. All car buyers are reminded to be diligent in their inspection of the vehicle and to be aware of the issues with salvaged titled vehicles.

 

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