The 2023 hurricane season is upon us. This year, over 21 named storms were predicted for this year, and we have already seen storms make landfall.
One of the biggest dangers that hurricanes pose to the automobile industry is vehicle water and/or flood damage. In 2022, FEMA paid out over $1 billion for flood damage to automobiles in the United States. This damage can have a significant impact on businesses in the automobile industry, including:
New car dealerships: Flood damage can destroy new cars and trucks, forcing dealerships to replace them. This can be a costly proposition, especially in a time when supply chains are already disrupted.
Used car dealerships: Flood damage can also damage used cars, making them less valuable or even unsalable. This can lead to lost revenue for used car dealerships.
Auto repair shops: Auto repair shops may be called upon to repair flood-damaged vehicles. However, some flood-damaged vehicles may be beyond repair. This can lead to lost revenue for auto repair shops.
Auto parts suppliers: Auto parts suppliers may also be impacted by flood damage. If factories that produce auto parts are flooded, it can disrupt the supply of auto parts to dealerships and repair shops.
In addition, it is important to note that flooded cars may still be on the road. And these vehicles may not be in operation in the geography where the reported water and/or flood damage occurred.
To help you stay up to date on the latest insights into flood damaged vehicles we’ve put together a complimentary Vehicle Insights: Water and Flood Reported Events Infographic. You’ll learn:
• What percentage of owners repurchase a different vehicle after water or flood damage for their current vehicle
• Where was the damage originally reported?
• Where are vehicles with water or flood damage currently located?
Here is another resource you may find useful to help mitigate the risk of purchasing flood damaged vehicles.
Check out our Free AutoCheck Flood Risk Check.