Due the total floodination of Southern Louisiana and surrounding areas' infrastructure, many cars sat in a toxic postmordial soup for up to four weeks before they could be pulled out, naturally to be declared total losses. Progressive, stuck with 5,000 of completely irreparable hulks, decided to send 'em off to the squasher rather than sell them to junkyards or attempt to repair and resell them with salvage titles.
According to Progressive's Juan Andrade, "We don't want our people working around those cars and we don't want them back on the road." We're guessing that the real reason is more prosaic it was simply the cheapest, most expedient option, as well as the least likely to result in pesky lawsuits for the company.
Progressive sends 5,000 flooded cars to crusher [BizNewOrleans]
Louisiana Flood-Car Prohibition Bill Goes to Gov [Internal]