Auto Insurance Fraud and Hurricane Katrina

The Navy Compass has a story from last week about scam artists who have a new scam going. They are taking cars that were damaged from Hurricans Katrina and Rita and repairing the cars, sometimes cosmetically, before selling them in other states. By retitling the vehicle, they can take a salvaged car and get a good title. The people who buy the cars have no idea that the car was damaged.

How can you avoid getting caught in this scam? First, buy a Carfax report before you buy the car. Dont trust the sellers report. Spend the extra dollars and get your own. Second, check with NICB to see if the car was damaged. You can do this by VIN number.

These two steps wont prevent you from becoming a victim, but they will go a long way to making sure you dont end up with someone else's problem. 

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