Wisconsin Insurer Warns Buyers About Post-Hurricane Vehicle Fraud

Sun Prairie, Wis.-based General Casualty Insurance Companies are cautioning customers about the possibility that the shiny pre-owned Honda or Buick being considered for purchase may have been submerged in flood waters.

“The problem is that 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 database of known vehicles and watercraft affected by Hurricanes Katrina, Rita and Wilma. The database is available at www.nicb.org and by
entering the Vehicle Identification Number or Hull Identification Number.

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, says agents should ask their policyholders if they’ve purchased a vehicle with known hurricane damage.

“The damage won’t necessarily affect the policy, but it could affect the actual cash value of the vehicle. After discussing it, they may decide the vehicle requires less coverage,” Valinotti said

General Casualty Insurance Companies has insured autos, homes and businesses since 1925. General Casualty markets its products through 1,500 independent insurance agencies in 25 states.

Source: General Casualty Insurance Companies

Topics Catastrophe Natural Disasters Carriers Auto Fraud Flood Hurricane Wisconsin Casualty