WATERLOO, ON, June 28, 2013 /CNW/ - Economical Insurance is cautioning consumers who are looking to buy a used automobile to be
aware that vehicles deemed a total loss from the flooding in Alberta
will find their way to market for unsuspecting buyers outside Alberta.
History has shown that unscrupulous people buy flood-damaged cars, clean
them up and sell them at attractive, below-market prices. This is not
illegal. What is illegal is hiding the truth of a vehicle's history.
Economical Insurance warns buyers to be on the lookout for tell-tale
signs a vehicle for sale may have been flooded in Alberta, such as:
strong perfumes inside the car to mask odours
persistent condensation on the windows
water stains on the seats or carpets
dampness in the seats or carpets
dirt marks in unusual places, or under the carpets
the presence of mildew
rust in odd places
"Another clue is the date the vehicle was registered in the province the
buyer lives in," said Rocco Neglia, Economical's vice-president,
claims. "For example, if an Ontario resident is looking to buy a car
and notices that it was only recently registered in the province, you
need to ask yourself 'Where did this vehicle come from?' and 'What
happened to the vehicle before it was registered in Ontario?'"
A buyer of a flood-damaged vehicle will find that it will likely require
significant and expensive electrical and mechanical repairs which may
only become apparent six to 12 months after purchase.
The safest way to avoid purchasing a flood-damaged vehicle is to only
buy from reputable dealers. Before purchasing, have the vehicle
inspected by a third-party garage. Insist on being given a formal
vehicle history report.
About Economical Insurance
Founded in 1871, Economical Insurance is one of Canada's leading
property and casualty insurers, with more than C$1.8 billion in
premiums and more than C$4.7 billion in assets. Based in Waterloo, this
Canadian-owned and operated group services the insurance needs of more
than one million customers through 17 branches and service offices
across the country. In 2010, Economical announced its decision to
become the first federally-regulated mutual property and casualty
insurance company to demutualize. Economical Insurance conducts
business under the following brands: Economical Insurance, Economical,
Western General, Economical Select, Perth Insurance, Family Insurance
Solutions, Federation Insurance and Economical Financial.
SOURCE: Economical Insurance
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