GEICO reminds drivers that Hurricane Irene flooding may lead to deluge of unsafe vehicles on the market

WASHINGTON--September 1, 2011: While Hurricane Irene left behind flooded towns, cities and communities, GEICO and the National Insurance Crime Bureau (NICB) want to warn drivers that a flood of fraud schemes may well be the next wave.

“We're very grateful that none of our associates was personally harmed and we haven't learned that any of our policyholders were injured.”

"GEICO is one of the largest auto insurers in the Northeast," said Nancy Pierce, vice president of claims. "We're very grateful that none of our associates was personally harmed and we haven't learned that any of our policyholders were injured."

Pierce knows what's coming next and so does GEICO's Special Investigations Unit director Steve Rutzebeck. There will be thousands of people who need vehicles and who may become unsuspecting fraud victims by buying vehicles with hidden damage.

Following Katrina, flooded cars were dumped on the market after some cosmetic repairs in an attempt to sell them for a quick profit.

"The best advice we can give people," said Rutzebeck, "is to always deal with a reputable company when buying a used car or getting a car repaired. Ask your friends, family and people you trust for a referral. Shy away from door-to-door solicitors or anyone who has a 'deal or price that sounds too good to be true' because it probably is."

Rutzebeck reminds policyholders that they can report fraud at GEICO's hotline number 1-800-824-5404 ext. 3313 or at GEICO's website Geico Fraud Investigations.

NICB provides drivers with a number of tips on how to avoid buying a washed-up vehicle.

Among those tips are:

• Choose a reputable car dealer.
• Inspect the vehicle for water stains, mildew, sand, and silt under the carpets, floor mats, headliner cloth and behind the dashboard.
• Check for recently shampooed carpet.

For more tips go to the NICB website. NICB also runs a toll-free fraud hotline at 1-800-835-6422.

GEICO (Government Employees Insurance Company) is a member of the Berkshire Hathaway family of companies and is the third-largest private passenger auto insurer in the United States.