Progressive Opts To Destroy Hurricane Katrina-Damaged Cars

Hurricane Katrina damaged much of the New Orleans area, including thousands of cars. The Progressive auto insurance company opted to destroy thousands of cars that were damaged by Katrina, as opposed to cleaning the cars up and selling them. Details are below in the snippet from yesterday's press release:

"After Hurricane Katrina, flood-damaged cars in Louisiana's hardest-hit parishes were left sitting in water contaminated with e coli and fuel for up to four weeks before insurance companies could get in and start pulling them out. Environmental officials advised that these cars could be decontaminated by washing with soap and water or a combination of water and bleach. Once decontaminated, these vehicles could be sold to consumers anywhere in the country.

The Progressive Group of Insurance Companies, the third largest auto insurance group in Louisiana and in the U.S., made an unprecedented decision to scrap the more than 5,000 vehicles it insured that were declared total losses as a result of flood waters in St. Bernard parish and parts of Orleans parish.

'The reasons are simple,' said Juan Andrade, claims general manager for the region. 'We don't want our people working around those cars and we don't want them back on the road.'

The cars are destroyed using a three-step process at the Bayou Steel Corporation's Mississippi River Recycling plant. First, they're crushed flat. Then, they're fed through a shredding machine. Finally, the parts are separated and the recyclable metals are melted into re-usable product.

The Progressive Group of Insurance Companies, in business since 1937, ranks third in the nation for auto insurance based on premiums written and provides drivers with competitive rates and 24/7, in-person and online service. The products and services of the Progressive Direct Group of Insurance Companies are marketed directly to consumers by phone at 1-800-PROGRESSIVE and online at www.progressivedirect.com through the Progressive Direct(SM) brand. The Drive Group of Progressive Insurance Companies offers insurance through more than 30,000 independent insurance agencies that market their products and services through the Drive(R) Insurance from Progressive brand. For more information about Drive Insurance, go to www.driveinsurance.com. The Common Shares of the Progressive Corporation, the Mayfield Village, Ohio-based holding company, are publicly traded at NYSE:PGR. More information can be found at www.progressive.com."

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