Flood damaged car claims could reach £40m

Insurers could be facing claims of up to £40m for cars written off by this winter’s floods, according to the AA.

And the breakdown and insurance group warned that the used car market could be swamped with flood-damaged cars following the extreme weather of recent weeks.

Michael Lloyd, director of AA Insurance says he is concerned that while insurers go to stringent efforts to dispose of flood-damaged cars and ensure that they don’t reach the open market, many others could be sold on, as drivers avoid losing their no-claims bonuses.

And while dried-out cars may look ok, there could be deep-seated mechanical problems.

“Catalytic converter and exhaust system life can be seriously reduced, wheel bearings could seize, brakes can be affected and alternator and starter motors could fail,” he said.

“In addition, water can seriously affect electrical and electronic systems including the airbags, which might go off unexpectedly – or not deploy when they should.”