Is your car covered from pothole damage?
Posted on Tue, Mar 01, 2011
As a result of snow, ice, wind and rain, drivers must also now deal with another hazard of winter, potholes. Highways and streets throughout Massachusetts are littered with these road pockets. Fortunately, there is auto insurance coverage for damage resulting from potholes and other winter-related disasters.
The Insurance Information Institute offers the following insurance tips so consumers can protect themselves against winter-related damages.
POTHOLES
Damage to vehicles resulting from potholes is covered under the optional collision portion of an auto insurance policy. Coverage for potholes may vary from company to company—for instance, there may be limited coverage for damage to tires if the car itself was not affected by the pothole. This coverage also pays for a collision with another car, object or as a result of flipping over. Collision coverage is generally sold with a deductible of $500 to $1,000—the higher the deductible, the lower the premium.
Worth noting is that some communities will reimburse you for tire damage from a pothole. Each community is different but it’s definitely worth a phone call, since quite often the damage is less than the deductible.
OTHER WINTER-RELATED DAMAGE
The optional comprehensive portion of an auto insurance policy provides protection against a number of winter-related disasters such as a tree or chunk of ice that falls on a car. Comprehensive coverage provides reimbursement for losses due to theft, fire, earthquakes, flood or hail. Basically it covers losses caused by something other than a collision with another car or object or a crash with an animal such as a deer.
Comprehensive insurance is usually sold with a $300 to $1000 deductible, however in Massachusetts there is no deductible for glass loss unless you request one. Again, a higher deductible means a lower premium.
Comprehensive insurance also reimburses for cracked or shattered windshields, and some companies offer this glass coverage without a deductible.
Remember that comprehensive and collision insurance are optional coverages. Lenders, however, frequently require comprehensive and collision coverage as a condition of the loan agreement. Those driving older cars sometimes drop these coverages as way of saving money. If a car is worth less than one thousand dollars or less than 10 times the insurance premium, purchasing the optional coverages may not be cost effective.
ACCIDENTS & CRASHES
Turbulent winds along with snow and ice create hazardous driving conditions, increasing the possibility of auto crashes and injuries.
To drive legally, there are state required amounts of liability insurance. These requirements, however, are generally quite low, so in order to be financially protected drivers should be sure to get enough insurance to protect their assets in the event of a crash with another car or a pedestrian. We generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident.
Drivers can purchase more liability protection on their auto policy, or obtain an umbrella liability policy. Typically, umbrella policies cost between $200 and $300 per year for a million dollars in coverage. This is a cost-effective way to get additional liability protection, but keep in mind that an umbrella policy only kicks in once the limit has been reached on the underlying liability coverage in an auto policy.
Contact your insurance agent to review your auto insurance coverage and make sure that you are financially protected.