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Thousands of Cars to be Crushed After Superstorm Sandy

Thousands of Cars to be Crushed After Superstorm Sandy A few weeks back, we looked at Hurricane Sandy’s impact on the Auto Industry in our blog post. This week, we’ll update you on the latest news. According to the Insurance Journal, the estimate of 230,000 insurance claims for vehicle damage remains unchanged. Thousands of vehicles are damaged beyond repair. In addition to sorting through the claims, there has been a huge issue of what to do with the cars. Many of the flooded vehicles were towed to holding areas. From there, they are being loaded onto car haulers and taken to facilities to be crushed. The damage has hurt individual owners and dealerships alike. In Brooklyn, NY, more than 7,000 brand new vehicles were parked in holding areas awaiting delivery to dealerships when Hurricane Sandy struck. The holding area was flooded with more than three feet of water. All resources were initially directed towards disaster and emergency relief efforts. Now that the immediacy has passed, government agencies are trying to get these vehicles towed to the holding areas, where they will be identified and crushed. The National Insurance Crime Bureau (NICB) is focusing its efforts on making sure the vehicles are identified. If you are looking to purchase a new car, be wary of buying any vehicle with previous water damage. Using the NICB’s VINCheck system, consumers can enter the VIN of a vehicle they are interested in purchasing to see if it has ever been declared as salvaged. Created in the aftermath of Hurricane Katrina, consumers can use the system to ensure they aren’t swindled into purchasing a flood damaged car, and to determine if a vehicle had ever been reported as stolen. You and your vehicles deserve quality Westchester County Auto Insurance from a responsive, community-based agency that always goes beyond just the policy. We invite you to request a courtesy auto insurance quote by calling (888) 639-4560.

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Hurricane Sandy’s Impact on the Auto Industry

Hurricane Sandy’s Impact on the Auto Industry While many of the mass transit systems are up and running again, the auto industry is facing significant long term effects in the aftermath of Hurricane Sandy. The results are mixed, and often contradictory. Auto insurance claims are pouring in by the thousands. Demand for used cars is increasing as people seek to repair storm damaged ones, resulting in a shortage of rental vehicles available. The new car market will get a boost, but many dealerships have suffered losses and have to scrap thousands of brand new vehicles. Estimates by the National Automobile Dealers Association tally the results at up to a quarter-million vehicles across the East Cost may have been damaged by Hurricane Sandy. Nearly a month later, cars still line the streets, idly waiting to be towed. Rental cars are difficult to come by. Consumers need replacement cars for their own storm-damaged vehicles and emergency responders and local utilities need cars and trucks for the recovery effort. The result has left the rental car industry sorely scarce of vehicles. According to the New York Times, rentals for the four largest companies- Enterprise Holdings, Hertz Global Holdings, Avis Budget Group Inc. and Dollar Thrifty have all sold out in key location. Many are diverting vehicles from other areas to compensate for the high demand in the upcoming holiday season. Sales of autos have also seen a spike. Insurance companies have received thousands of auto claims, and many are looking to replace storm-damaged cars. But, auto dealerships located in storm ravaged areas have felt the effects. Despite the expected boost, large numbers of brand new cars were damaged. According to Auto Blog, Toyota, Chrysler, Nissan, and Honda are set to scrap around 15,000 new vehicles ruined by the storm. Contact A.J. Benet today for more information about our Westchester County Auto Insurance. (888) 639-4560 Source: Wall Street Journal

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