As clean up and disposal efforts continue in Gulf states hit hard by Hurricane Katrina,  record numbers of flood-damaged cars and trucks will be sold to salvage and recycling yards across the nation.  FEMA  has yet to post numbers, but industry sources estimate that there are in excess of 100,000 affected vehicles.  If that number is accurate, as it is believed to be, Katrina will have impacted more vehicles than any other catastrophe in history. UPDATE - The Texas Department of Transportation quoting insurance industry sources reports as many as 700,000 vehicles suffered flood damage in Hurricanes Katrina and Rita.

The consequences of dealing with battered vehicles from this storm have not yet been determined.  What we know for certain is that Katrina’s floodwaters were filled with toxic pollutants and biohazards that saturated cars and trucks for weeks, and special handling will be required to protect the health of all who come in contact with them.

 The Coordinating Committee for Automotive Repair (CCAR)  has published a study analyzing the risks and vulnerabilities of those exposed to vehicles contaminated by Katrina’s waters.  The report titled, “Safety Concerns Regarding Handling, Disposal and Repair of Flooded Vehicles Following Hurricane Katrina”  was posted September 14, 2005, and is available on CCAR’s website at http://www.ccar-greenlink.org .  CCAR intends to post periodic updates to the report as new information is obtained.

According to CCAR’s report, Katrina’s floodwaters tested high for raw sewage, hexavalent chromium, arsenic and lead.  Additionally, many media sources have reported that petrochemicals, sewage and other pollutants of all types including decaying animal and human remains have made waters infectious and unfit for bathing or consumption. In brief, everything touched by the water is contaminated and potentially deadly.  Outbreaks of E-coli, Hepatitis, Fungal infections, Tetanus and Diarrhea are of utmost concern, though to date incidents on a wide scale have been minimal and unalarming. 

In preparing the CCAR report the organization contacted the Centers for Disease Control and Prevention (CDC) ,   Environmental Protection Agency (EPA)  and others and learned this: “At this point, there is no recommended way to restore submerged vehicles to pre-accident condition.”  This fact alone should quantify these water-damaged vehicles  to be deemed total losses.  But you shouldn’t believe that just because insurers may declare them totaled, you won’t see many of them on the road again.  There is a fear that in the coming months many of the affected cars and trucks will be inadequately refurbished and sold without full disclosure to unsuspecting consumers all across the nation.

Robert M. Bryant, President and Chief Executive Officer of the National Insurance Crime Bureau (NICB)  had this to say in a September 9, 2005 press release: “…unscrupulous salvage operators and dealers often try to conceal the fact that vehicles have been damaged by a natural disaster…” an action the NICB considers fraudulent. To combat this type of fraud, NICB is registering cars and trucks from the contaminated Gulf region and issuing an alert to citizens all across the nation to be on guard for deals that seem too good to be true.

Will NICB’s Katrina Registry   keep your insurer from having bacteria-ridden parts installed on your car during repairs?

First, you need to understand that about 1,000 property casualty insurance companies ante up to fund the NICB.  The partnering insurers then join efforts with law enforcement agencies to “facilitate the identification, detection and prosecution of insurance criminals.”  In short, the NICB has its sights set on catching and prosecuting the faction of the public that cheats insurers.   But, ironically, you won’t find it challenging or prosecuting corrupt insurers.  In fact, there is no provision in the NICB’s work to protect the nations citizens from unscrupulous acts of dishonest insurance companies or crooked adjusters. 

We see examples every day where a blind eye is turned to blatant acts of fraud committed by partnering insurers against the general public – the underpayment of claims, required use of inferior parts, and steering work to shoddy, inexpensive repair shops to save money are three examples.

Because of this, I anticipate that as insurers write estimates and direct repair work on claimant and insured vehicles in the coming months, they will continue to mandate use of used parts without concern for the quality or condition of the donor vehicle, just as they have done in the past.  Directly or indirectly, they will obtain parts from salvage yards where parts are least expensive despite the fact that a whole new inventory of parts in junkyards across the nation may be contaminated.

The collection of vehicle identification numbers in the Katrina registry can help only if insurers and their partnering shops consult it when used parts are being considered and sourced.  To really help, they must then make a decision to refrain from using the parts.  However, I suspect that if salvage parts from water-damaged cars in the Gulf region are the least expensive of the alternatives to chose from,  insurers and their partnering shops will join forces to convince you there is nothing wrong with them.

Even if the states of Louisiana and Mississippi are effective in identifying flood damaged  vehicles and branding their titles as their individual laws require, there will be many cars that fall through the cracks, particularly those owned by tourists, transients, and rental companies not registered and licensed in these states. Moreover, it is also very probable that many partially submerged or partially damaged cars will be deemed repairable by insurers regardless of the opinions of their owners, thereby excusing them from title branding.  The same lack of branding will no doubt follow damaged or submerged cars lacking insurance coverage.

Know Your Rights and Protect Yourself

1) The most effective way to assure that your car won’t be repaired using contaminated or inferior parts is to insist on the use of new original equipment manufacturer (OEM) parts.  (ie If you have a GM car, insist on brand new GM parts, etc)

2)  If you do give in to pressure to use salvage parts, insist on finding out all you can about the donor car before authorizing the purchase of the parts.  You can do this by running a VIN history of the donor car through Carfax   or another VIN history retailer.  If you are in the State of Ohio you should be aware that insurers cannot source parts for your car that are not of like kind and quality to those on your car at the time of the loss.  The current law also requires that they be sourced at salvage yards within the state (ORC1345.81 {D}),   though efforts are underway in HB208 to remove this provision.  Other states may have similar laws.

3) Don’t be fooled or coerced into believing that a water damaged car can be restored to its preloss condition - it can’t be.

4) Generally speaking, insurance is based on the premise of indemnification.  If repairs won’t put your car back into an equal condition to that which it held immediately before the loss, insurers must either replace your car or give you a monetary settlement to make up for the diminished market value of the auto.

Learn more reading linked articles below:

• Hurricane Damaged Vehicles Swamp Auto Recyclers
  Article - www.AmericanRecycler.com / Brian R. Hook

content & design 2002-2008 David Williams and SafeCollisionRepairs.com

About Safe Collision Repairs

For more than ten years, David Williams of Wheelersburg, Ohio's Safe Collision Repairs has worked with consumers and attorneys in the tri-states of Ohio, Kentucky and West Virginia to expose unsafe auto repairs and maximize recovery on auto insurance claims. Some of the company's services include Post-Repair Inspections, Prepurchase Inspections, Auto Damage Assessments, Lemon Law Investigations, Expert Court Testimony and Diminished Value Calculations using an advanced version of Network Information Communication's WreckCheck program.

Inquiries can be directed to: Safe Collision Repairs David A. Williams Post Office Box 70 Wheelersburg, Ohio 45694 (740) 456-1111 (740) 355-4056

Disclaimer

The content expressed on this website and in the article above represents the opinions of David A. Williams. Williams is neither an attorney nor public insurance adjuster, but is an expert, consultant, and writer specializing in the field of automotive collision repair and valuations. The information provided herein is not intended to be a substitute for legal or insurance advice. Because collision repair is a continually evolving science, any text, materials or links found herein are provided without claim or guarantee to their accuracy or completeness.