NICB and officials warn of flood-damaged vehicles in used car market

The National Insurance Crime Bureau (NICB) and the Indiana Attorney General’s Office are warning consumers about the risks of purchasing flood-damaged vehicles in the used car market. As of August 2025, CARFAX estimates that approximately 530,000 flood-damaged vehicles are currently on roads in the United States.

Experts warn that while these vehicles may appear to be in good condition externally, they can suffer from hidden damage to electrical systems, engines, transmissions, and brakes. Some dishonest sellers use a process known as “title washing” to conceal a vehicle's history of being a total loss or having a salvage title, often reselling them far from the original disaster site.

To protect themselves, officials recommend that buyers run a vehicle’s VIN through services like NICB’s VINCheck, review vehicle history reports, and have a professional mechanic inspect any used car before purchase. Indiana Attorney General Todd Rokita advised that if a seller refuses to allow a mechanical inspection, potential buyers should “just walk away.”