Thousands of Cars Damaged by Sandy to be Crushed

News provided by

Dec 10, 2012, 06:00 ET

DES PLAINES, Ill., Dec. 10, 2012 /PRNewswire-USNewswire/ -- The National Insurance Crime Bureau (NICB) says progress is being made in identifying and removing thousands of vehicles damaged beyond repair by Sandy. The estimate of 230,000 insurance claims for vehicle damage in the areas affected by Sandy remains unchanged at this time. Many of those vehicles were flooded and are being towed to holding areas where they will be loaded on car haulers and taken to facilities to be crushed.

On Dec. 5^th, NICB officials visited holding areas in Brooklyn where more than 7,000 new vehicles awaiting delivery to dealerships had been parked when Sandy flooded the area with more than three feet of water. All but 800 cars had been removed. The vehicles suffered extensive damage as the wind and water shoved them into each other and flooded their electronic systems, damaging them beyond repair.

"New York City Police and the other law enforcement agencies around the area were understandably focusing on other emergencies and disaster efforts initially," said NICB New York Region Operations Director Thomas Lohmann. "Now they have begun to address the issue of dealing with thousands of flooded and damaged vehicles, and they are doing an outstanding job of getting these vehicles towed to holding areas where they can be identified and accounted for prior to being scrapped. They are also going after towing companies that have taken cars off the street without permission, and are submitting outrageous towing and storage bills to insurance companies. Some may be holding the vehicles in an attempt to increase storage fees, or actually claim title to the vehicle after it sits at their facility for an extended time."

For a complete report, watch this video. Photos are available here.

NICB member insurance companies have provided extra resources to tow damaged vehicles and dispose of them, and are working with NICB to ensure all of the Vehicle Identification Numbers (VINs) of these vehicles are reported to the National Motor Vehicle Title Information System (NMVTIS) at www.vehiclehistory.gov.

NICB's efforts are focused on making sure these damaged vehicles are identified. Using VINCheck(SM), consumers can enter the VIN of a vehicle they are interested in purchasing to see if it has ever been declared as salvage. VINCheck, available free of charge at www.nicb.org, provides access to information from insurance companies representing nearly 90 percent of the insured, private passenger market. It was created in the aftermath of Hurricane Katrina.

"Despite everyone's best efforts, there will be cases where damaged vehicles are cleaned up, dried out and sold by unscrupulous dealers or individuals who know how to beat the system," said NICB President and CEO Joe Wehrle. "No one should be driving a car that's been sitting in four feet of water. It's unsafe. But people who will sell you a car like that aren't worried about your safety."

NICB is also warning victims of Sandy to be on the lookout for contractors who may try to take advantage of the situation by offering to do repairs in return for an advance payment or insurance check. Unscrupulous contractors may take the money and run, inflicting more financial damage and suffering on the victim.

Anyone with information concerning vehicle theft and insurance fraud can report it anonymously by calling toll-free 1-800-TEL-NICB (1-800-835-6422), texting keyword "fraud" to TIP411 (847411) or by visiting our website at www.nicb.org. Or, iPhone or iPad users can download the NICB Fraud Tips app to make it easy to quickly send a tip and get a response.

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 $319 billion in insurance premiums in 2010, or approximately 80 percent of the nation's property/casualty insurance. That includes more than 94 percent ($152 billion) of the nation's personal auto insurance. To learn more visit www.nicb.org.

SOURCE National Insurance Crime Bureau