Monday, March 10, 2014

Pot Holes vs Insurance Coverage

With the "hard" winter we have had in Virginia, pot holes have become the bain of driving interstates and city streets.
We have all heard the news reports of drivers cracking axles or bending tire rims from hitting a pot hole at 55 mph. Not hard to imagine as we swerve around the pot holes as our city work crews work feverishly to fill the holes.
Perhaps you were unaware of that insurance may help.  As you can see in the article below, auto insurance may cover the damage.  
Be wise:  read not only for the coverage of the pot hole damage but verify your deductible.
If you carry a high deductible, it may very well not be worth the claim.
Yet checking is invaluable!!!  Saving money, if possible, will feel good!


Does Your Auto Insurance Cover Pothole Damage?

When it comes to potholes and car insurance, there's good news and bad news.

The good news is, yes, pothole damage is usually covered-providing you have collision coverage.

The bad news: You only get coverage if your claim is higher than your deductible and every claim you file goes on your permanent record.

Pothole damage comes under collision coverage. That's an optional in the standard auto insurance policy and covers damage to your car that happens when you collide with an object like a pothole (or another car or even a house). It also covers you if you flip your car over.

It doesn't wear and tear to a car or its tires due to bad road conditions.

Check the declarations page of your policy to see what your collision deductible is. That's the amount the insurance company is going to subtract before paying your claim.

If a pothole causes damage that's more costly than your deductible, you can file a claim for your repair costs minus your deductible. Your collision coverage will reimburse you for the costs of repairing your car, minus the deductible.

But consider carefully before you file for just a small amount over your deductible. Every claim you make goes into your insurance permanent record, called your CLUE report. Insurance companies use your CLUE report to decide how much to charge you for auto (and homeowners) insurance.

Wondering what's already in your CLUE reports? You can order free copies online from Lexis/ Nexis?. 

Courtesy of Al Clark's HomeAgain Newsletter
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