NICB: Hurricanes Leave Record Numbers of Vehicles Damaged

Warns Buyers to Beware in Weeks and Months Ahead

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Oct 19, 2017, 06:00 ET

DES PLAINES, Ill., Oct. 19, 2017 /PRNewswire/ -- Flooded vehicles have finally stopped arriving at the Royal Purple Raceway east of Houston. Some 23,000 now await processing and retitling to be auctioned off for parts or to be scrapped. That is just one of several insurance industry salvage locations where more than 422,000 insured vehicles damaged by Harvey have been taken for processing. According to the National Insurance Crime Bureau (NICB), these totals surpass the number of claims that resulted from Hurricane Katrina (approx. 300,000) and from Superstorm Sandy (250,500).

Thousands of insured flood-damaged vehicles are being processed by the insurance industry at various sites around Texas.

Experience the interactive Multichannel News Release here: https://www.multivu.com/players/English/76652512-nicb-reports-record-number-of-hurricane-flooded-vehicles/

In addition, more than 215,000 claims have been filed following damage to vehicles from Hurricane Irma in Florida.

These insured vehicles will be processed and rebranded with a salvage title and sold at online auctions to dismantlers who will save usable parts or have the vehicle crushed and sold for scrap.

Watch our video report here.

The VIN numbers are entered into the NICB's VINCheck database, which is free to the public and will indicate the vehicle has been damaged and branded. They are also entered into the National Motor Vehicle Title Information System (NMVTIS).

Unfortunately, owners of even more vehicles no longer carry comprehensive coverage that covers flood damage and those vehicles are not part of the system. The owner should request a new branded title, but that may not happen. In fact, many flooded vehicles that weren't insured will be cleaned up and sold with no indication of any damage.

Some unscrupulous buyers will also buy a branded vehicle, clean it up, and take it to another state where they will obtain a "clean" title and sell it with no warning that it has been flooded.

Anyone looking to buy a vehicle in the weeks and months ahead should be on the lookout for hidden flood damage. Here are some tips.

1. Check vehicle carpeting for water damage

2. Check for rust on screws or other metallic items

3. Inspect upholstery and seat belts for water stains

4. Remove spare tire and inspect area for water damage

5. Check the engine compartment for mud or indicators of submergence

6. Check under the dashboard for mud or moisture

7. Inspect headlights and taillights for signs of water

8. Check the operation of electrical components

9. Check for mold or a musty odor

Anyone with information concerning insurance fraud or vehicle theft can report it anonymously by calling toll-free 800-TEL-NICB (800-835-6422), texting keyword "fraud" to TIP411 (847411) or submitting a form on our website. Or, download the NICB Fraud Tips app on your iPhone or Android device.

About the National Insurance Crime Bureau: Headquartered in Des Plaines, Ill., the NICB is the nation's leading not-for-profit organization exclusively dedicated to preventing, detecting and defeating insurance fraud and vehicle theft through data analytics, investigations, training, legislative advocacy and public awareness. The NICB is supported by more than 1,100 property and casualty insurance companies and self-insured organizations. NICB member companies wrote over $436 billion in insurance premiums in 2016, or more than 79 percent of the nation's property/casualty insurance. That includes more than 94 percent ($202 billion) of the nation's personal auto insurance. To learn more visit www.nicb.org.

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SOURCE National Insurance Crime Bureau