A report released Thursday by the National Insurance Crime Bureau indicated the tally for the number of vehicles damaged by superstorm Sandy was up to 250,500.
New York and New Jersey together accounted for 210,000 damaged vehicles. Since the last report the number of damaged vehicles in New York increased by 20,000.
The report indicated that the true number of damaged vehicles is likely much higher, as the tally reflects only damage declared on insured cars; damaged or destroyed uninsured vehicles are not included in the tally. The extent of the damage indicated by the insurance claims may be broad as well. The tally is comprehensive for all insurance claims related to Sandy, from paint scratches caused by fallen tree limbs to cars declared total losses after being submerged in water for day.
Buyers on the used car market across the county should exercise caution because many used cars for sale may have been damaged by the storm.
"By now there could be many Sandy damaged vehicles that are in the process of being reconditioned and sold to unsuspecting consumers all across the country," the NICB said. "It is not illegal to buy or sell flood vehicles, or vehicles declared as salvage, as long as the parties to the sale are aware of the vehicle's status."
The National Insurance Crime Bureau is an industry-financed nonprofit organization that investigates insurance fraud and vehicle theft. Consumers should be aware that severely damaged vehicles may appear on the market and be sold with no advertisement of the storm damage, the report stated.
Some signs of cars with water damage are puckered leather seats, a hint of mildew and headlights beaded with condensation, according to The New York Times.
"People masquerade those things as perfectly good vehicles without any hint that they had been flooded or exposed to water," said Frank Scafidi of the NICB, according to The Times. "There is a market for these vehicles, even though we might never want to see them on the road again."
Once damaged cars are declared a total loss the companies insuring the cars employ companies to tow away, fix up and resell the cars, The Times reported.
Storm damaged cars can be intentionally misidentified and sold at auction to buyers unaware of the storm damage. Most states require cars destroyed by flooding to have their titles marked, but unscrupulous businessmen can take the cars to states like Colorado and Vermont, where branding a car's title as storm damaged is not required, and re-register them, a tactic known as "title-washing," The Times reported.
Anyone buying a used vehicle is encouraged to learn more about flood damage and salvage vehicle scams and post-disaster contractor repair schemes. The NICB has created a useful website detailing relevant information.
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