Unhealthy and Unsafe Flood Cars Still for Sale in California as Republican State Senators and "Moderate" Dems Cave to Auto Dealers and Insurance Industry

Auto insurers and dealers have cleverly devised ways to profit from the frauds involving killer flood cars. When insurers total a car, it is rarely destroyed. Instead, they send totalled autos to auctions known as "salvage pools," which are basically an arm of the insurance industry. Insurers get a cut of the take at the auction. When the junkers are sold for fraudulent purposes, they command a higher price, enabling insurers to recoup more of their losses or even turn a profit.

Consumer groups and California Insurance Commissioner Steve Poizner backed legislation to prohibit the sales of totalled hurricane flood cars in California. But insurers like State Farm, Geico, Farmers, Allstate, and auto dealers killed the bill. It was SB 498, authored by Senator Jenny Oropeza. No Republican senator would vote for it, since it was opposed by some of their biggest contributors. While most Democratic senators supported it, a handful of so-called "moderate" Democratic senators who usually side with business interests blocked its passage.

Keep an eye out for toxic flood cars that are contaminated with bacteria, mold, and mildew, have air bags that may not inflate in a crash, and electronic systems that are madly corroding away. Even if you don't buy one, you or your family could end up riding in one. If you happen across a flood car, get in touch with CARS. We're working to protect American families from flood cars, including testifying before Congress , working to get laws passed to prohibit dumping flood cars back into the market in the first place, and doing interviews with national news media.

More info about why flood cars are so hazardous in posted on our website.

For prior articles in the California Progress Report, check out "Katrina Cars," Those Damaged by Floods, Dumped in California and Rotting Flood Cars Should be Banned from California.

Rosemary Shahan, President of Consumers for Auto Reliability and Safety,, is a nationally renowned consumer advocate who has won many victories for car buyers. She is best known for initiating California’s landmark auto “lemon law” and fighting for the installation of air bags in all cars. She has repeatedly testified before Congress on auto safety issues. She has received many prestigious awards from consumer groups in recognition for her work and is widely quoted by national media as an expert on auto issues. Shahan serves on numerous progressive boards, including the Consumer Federation of California, Consumer Federation of America, and is also a member of the Board of Speak Out California where this article first appeared.