Insurance firms auctioning storm-damaged vehicles - WMC Action News 5 - Memphis, Tennessee

Insurance firms auctioning storm-damaged vehicles

JACKSON, Miss. (AP) - About 400 vehicles flooded during Hurricane Katrina will be put out for auction Friday to licensed dealers and dismantlers.

Insurance Auto Auctions of Westchester, Illinois, is conducting the auction at its location on U-S Highway 51 in Jackson. Company vice president Dan Oscarson says the vehicles are clearly titled as flooded vehicles.

He says the vehicles are being provided by insurance companies that already have settled with consumers.

The auction is closed to the general public.

State officials say aside from electrical parts, auto parts from a flooded vehicle probably aren't damaged.

Assistant Attorney General Grant Hedgepeth, director of consumer protection, says salt water typically erodes electrical parts in a vehicle.

Hedgepeth says he has no problem with the resale of parts, but he urges consumers to be "diligent" when considering buying a used car from someone from the Gulf Coast.

He says even a car that's been rewashed numerous times will have signs of flood damage.

(Copyright 2005 by The Associated Press. All Rights Reserved.)

Powered by Frankly