Flooded vehicle claims top 6,000

Insurance Australia Group (IAG) has had more than 6,200 vehicle claims lodged with its companies as a result of flooding and the impact of Cyclone Gabrielle on large parts of the North Island this year.

It predicts about 85 per cent of those claims with its brands State, AMI and NZI will be total losses. As a result, the group is warning consumers who will be seeking a replacement vehicle to check for flood damage in second-hand cars.

IAG cautions that some uninsured vehicles affected by the recent extreme weather events may be dried out and put up for sale, potentially catching out used car buyers.

Wayne Tippet, State’s executive general manager claims, says water can get into the engine, braking system and electrical components of vehicles and compromise their safety.

“For us, customer safety is paramount. That’s why any vehicles that have had water enter the interior are generally written off,” he explains. 

“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.”

Tippet says potential buyers in the current market should make extra checks before purchasing, including having it inspected by a professional prior to purchase, and to treat any vehicle with signs of water damage with caution.

State advises checking the vehicle identification number (VIN) of any car on Waka Kotahi NZ Transport Agency’s register of written-off and damaged vehicles. “While the register is not fully comprehensive, it’s a good place to start,” it says.

Other things it says to be aware of are vehicles that have a distinctive damp smell, signs of condensation, and whether electrical components are working as expected.