Flooding from Hurricane Sandy, which hammered the East Coast in late October 2012, is estimated to have damaged or destroyed at least 250,000 cars. At least 16,000 new cars were destroyed, and up to 250,000 used cars could be headed for the scrap heap.
Vehicle losses from Hurricane Sandy are comparable to those from Hurricane Katrina in 2005. Katrina flooded at least 325,000 cars, many of which later ended up in used car lots, according to the National Insurance Crime Bureau (NICB). The NICB has been working with the New York Police Department and private insurance companies to tow, identify, and record damaged cars in order to prevent insurance fraud and vehicle theft.
Even if you do not live in the Northeast, if you are shopping for a new or used car, look out for vehicles with signs of flood damage. Please see “Tips on Spotting Flood-Damaged Vehicles” for further information.