Looking for a deal on a used car? You could probably find one right now, if you don’t mind buying a vehicle that made it through one of the recent hurricanes.
"The problem is, sometimes used car buyers aren’t informed that their new purchase was previously sitting under flood waters. And that could mean fraud," said Kathy Suhey, who leads General Casualty Insurance Companies’ special investigation unit.
Suhey recommends that consumers always have a certified mechanic inspect the vehicle before purchasing it. Flooded vehicles may have corrosion, electrical and other serious issues.
In addition, Suhey recommends consumers and their insurance agents check the National Insurance Crime Bureau’s (NICB) database of known vehicles and watercraft affected by Hurricanes Katrina, Rita and Wilma. The database is available at nicb.org by entering the Vehicle Identification Number (VIN) or Hull Identification Number (HIN).
NICB reports that hurricane-flooded vehicles have appeared for resale as far away as New York and California.
Charles Valinotti, General Casualty’s assistant vice president of personal auto, notes that consumers should contact their insurance agent if they’ve purchased a vehicle with known hurricane damage. "The damage won’t necessarily affect their policy, but it could affect the actual cash value of the vehicle. After discussing it with their agent, they may choose to have less coverage."
For more information please contact Anne M. Smith.