Paying comprehensive and collision claims on salvaged vehicle may not be a pleasant experience for someone who purchased a salvaged vehicle much higher than its salvage value. Insurance companies will not pay more than salvage value when there is a loss.
North Riverside, Illinois (PRWEB) November 06, 2012
After Hurricane Katrina, several local and federal authorities reported thousands of flooded autos being taken out of Louisiana to other states including Illinois where vehicles were dried out, detailed, and offered these vehicles for sale to unwary individuals. Similar circumstances are now going underway after Hurricane Sandy, where auto insurance authorities warn of flooded vehicles flood the 'auto for sale' marketplace.
"We have very few clients every year who complain about problems with car insurance carriers regarding auto physical damage claims because their vehicles turn out to be salvaged because of reasons including flood," said Fadi Snenneh of Insurance Navy, a leading provider of vehicle insurance in Illinois. "For example, a salvaged vehicle with salvage value of $3,750 may have an actual cash value of $22,500. Some carriers are not willing to offer comprehensive and collision coverage on salvaged vehicles," Mr. Snenneh added.
Paying comprehensive and collision claims on salvaged vehicle may not be a pleasant experience for someone who purchased a salvaged vehicle much higher than its salvage value. Insurance companies will not pay more than the salvage value in the event of a loss.
"Consumers have several resources to examine the Vehicle Identification Number of vehicles that they are buying, to make sure it is not a salvaged or flooded vehicle. We recommend clients using the website of the National Motor Vehicle Title Information System and the National Insurance Crime Bureau," Snenneh said
The NMVTIS (vehiclehistory.gov) is an electronic system intended to guard consumers from fraud and dangerous vehicles and to keep stolen cars from being sold.
The Illinois based National Insurance Crime Bureau; NICB; (nicb.org) issued a statement last week saying that its office is standing "ready to assist law enforcement agencies, insurance and car rental companies with identifying and cataloging vehicles damaged by Hurricane Sandy [as] unscrupulous salvage operators and dealers often try to conceal from potential buyers the fact that vehicles have been damaged by a natural disaster." The NICB works with law enforcement agencies, the public, and other organizations to lead a united effort to prevent and combat insurance fraud and crime.
ABOUT INSURANCENAVY BROKERS
Insurance Navy is a leader in the Chicago auto insurance marketplace with several branches throughout the Chicago area. The company offers auto insurance quotes, Illinois SR22 quotes, homeowners insurance, and other business related insurance services.
Name: Fadi Snenneh
Insurance Navy: North Riverside Auto Insurance Office
Address: 7333 West 25th Street, North Riverside, IL 60456
Phone: (708) 443-5600