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The National Insurance Crime Bureau is advising consumers to be alert for potentially dangerous flood vehicles appearing in the used-car market in wake of Hurricane Irene.

Flood-damaged cars can be an attractive purchase for savvy consumers, but it can also lead to costly repairs and, potentially, life-threatening injuries, the non-profit group cautioned.

It warns that most consumers don’t have the training or the experience to spot flood vehicles. And consumers’ judgment may be swayed by a price that is just too good to pass up.

The group analysed insurance claims processed by its member companies. It shows that during last August alone, 11,789 flood vehicle-related claims were processed. This compares with just 994 processed in August of last year. New Jersey generated the most claims (4,121), followed by New York (2,809) and North Carolina (2,585).

As long as a seller discloses that a vehicle is a flood vehicle, then there is no fraud. In fact, many people buy such cars knowing that they will need to rebuild or replace affected parts.

But the trouble comes when a seller hides the fact that a vehicle has been declared as such and that fact is hidden from prospective buyers.

http://www.insurancejournal.com/news/east/2011/11/08/223365.htm

 

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