Anyone who has seen footage of the floods in Spain would have noticed the astonishing number of car wrecks, piled up on motorways, jammed under overpasses, and floating through the streets.
Cars that have been submerged under water up to the seat during floods (even if only for a short while) cannot be salvaged and must be recycled. Even if the engine is undamaged and the car can still be started, it should no longer be allowed on the road. Floodwater also damages electronic components, and the resulting corrosion can cause short circuits. These wrecks must be handled by an authorized dismantling company (Centros Autorizados de Tratamiento) and properly dismantled there.
98% of vehicles will end up in authorised companies
In countries like Belgium and the United States, experience with natural disasters has shown that only a small percentage of wrecked vehicles end up at certified car dismantling companies. This is often due to opportunistic parties taking advantage of the situation. In Spain, however, the situation is notably different: an estimated 98% of vehicles are expected to be collected and dismantled by certified companies.
Acting quickly is crucial due to the risks associated with temporary storage. Many vehicles were moved to public spaces as soon as possible, but this poses significant risks of pollution and fire. Certified car dismantling companies ensure the safe transport and storage of wrecks, while also respecting environmental regulations and property rights.

Efficient processing of vehicles
“In the initial days, the priority was saving lives and clearing vehicles to ensure access for emergency services,” says Manuel. “Now that this phase is complete, the focus has shifted to efficiently processing the vehicles. This is done in collaboration with the vehicle removal sector, the Consorcio de Compensación de Seguros, and the government.”
In the initial days, the priority was saving lives and clearing vehicles to ensure access for emergency services
How does it work?
In the event of disasters, compensation for policyholders is handled not by the insurance company, but by a government agency: the Consorcio de Compensación de Seguros. Additionally, new regulations govern the processing of vehicles damaged by disasters while ensuring that owners retain their rights.
- All vehicles declared total loss by the Consorcio must be sent to a certified vehicle dismantling company.
- If a vehicle is not a total loss, the insurance company contacts the last owner to discuss further steps. If the vehicle is not collected within two months, it will still go to a vehicle dismantling company.
- Vehicles not assessed or collected by February 2025 are automatically taken to a vehicle dismantling company.
Extra ordinary measures
To ensure wrecked vehicles are sent to car dismantling companies, Spain has implemented several extraordinary measures. For example, the Directorate-General of Traffic has launched a search tool on its website to help locate vehicles affected by the natural disaster. Currently, the list includes 2,500 vehicles that were on the road during the disaster, which were removed by the Guardia Civil and transported to various depots. These vehicles have been temporarily deregistered from the Spanish DVSA, relieving owners of road tax and other administrative obligations.
Owners whose vehicles were damaged by Dana but have not yet been identified by the Consortium can apply for a temporary cancellation free of charge. All affected vehicles will be marked in the vehicle register as ‘affected by Dana.’ This measure is intended to prevent these vehicles from returning to the road without a technical inspection and to reduce the risk of fraud in the second-hand market.
Disposal and recycling
The Consortium, together with AEDRA (Ministry of Industry and the Spanish Association of Car Dismantling and Recycling), is developing a process for the disposal and recycling of affected vehicles. If a car is deemed recoverable, it must undergo an extraordinary technical inspection, agreed upon by the insurer and the Consortium. If the vehicle passes this inspection, it will be registered in the vehicle register free of charge.
If the damage prompts the owner to remove the vehicle from circulation, they must contact an authorized company for dismantling. Only certified companies are permitted to dismantle vehicles in compliance with environmental regulations, and they will provide the owner with a certificate of destruction. Once the car’s deregistration is finalized in the DGT vehicle register, the relevant municipality is notified to update their records. In addition, the owners of affected vehicles are offered financial support of up to €10,000 toward the purchase of a new vehicle or a used vehicle less than three years old.
“The processing of these vehicles is going very well, thanks to the cooperation between the industry, the Consortium and public authorities. While respecting property rights, measures are being taken to dispose of vehicles quickly and in an environmentally friendly way to ensure a high-quality recycling of vehicles.”