Natural disasters and car insurance: which policy covers you best?
The NOAA National Centres for Environmental Information (NCEI) says that in 2022, there were 18 weather- and climate-related disasters across the United States. Natural catastrophes, often known as "catastrophic events with atmospheric, geological, and hydrological origins (e.g., droughts, earthquakes, floods, hurricanes, landslides)," can result in fatalities, property damage, and disruption of the ecosystem.
According to the NCEI report, there have been nine confirmed natural catastrophes as of June 2023, so we're on track to equal or surpass the number from the previous year. With flooding and severe weather on the rise, it is understandable to wonder how these weather-related catastrophes can affect the cost of auto insurance.
It's vital to realise that, depending on where you reside, you'll always want to make sure you have the correct coverage for you on your insurance policy, whether they do or not (we'll get to that soon). We had a conversation with some members of our HiRoad insurance team, who told us the lowdown.
Location, natural disasters, and insurance costs
The insurance company will typically want your mailing address as well as your garage or location address when you request an estimate for auto insurance.
What exactly is a garaging or geographical address and how important is it?
Despite the name, this is where your automobile will really be parked; sure, it does matter, but it doesn't necessarily mean that it must be in a garage. This address will enable your auto insurance to provide you with an accurate quote and premium.
Your rate may vary depending on your insurer and factors like nearby auto accidents, your level of driving safety, and the type of vehicle you drive.
The environment is another element. Your rate can be affected by the weather, location, and how close your car is to a body of water. If you reside in a region that is more vulnerable to natural catastrophes or simply extreme weather outside of regular weather patterns or circumstances, insurers may charge you a higher rate to cover damages.
Consider telematics-based auto insurance as a means of reducing a rate hike. Telematics is a technologically advanced alternative to traditional auto insurance that allows you to reduce your premiums without sacrificing coverage.
Does automobile insurance cover weather-related car damage?
Yes, weather-related automotive damage is covered by auto insurance. But it's crucial to recognise the difference between common weather-related mishaps and serious weather-related damage; we'll get to that in a moment.
It might be challenging to determine which coverage applies to whatever weather situation because natural catastrophes don't come in a one-size-fits-all package (like to auto insurance). Here are some frequently asked questions regarding the types of auto insurance that include natural disaster coverage.
Disclaimer: For particular specifics and coverage information depending on your individual circumstances, you should always consult your auto insurance policy and contract.
Does hail damage get covered by vehicle insurance?
There is one coverage you'll want on your insurance if a hailstorm damages your car and leaves it looking like the golf balls you hit on the fairway: coverage that is thorough. This coverage, which normally includes a deductible, might aid in paying for repairs for hail damage to your car.
Is wind damage covered by auto insurance?
Being blown by the wind is different from blowing in it. A strong enough wind could potentially harm your car. The majority of auto insurance providers would classify these damages as weather-related, causing them to (again) coverage that is thorough.
Does auto insurance cover damage from fires?
In the summer and early autumn, wildfires seem to happen frequently. It's never a bad idea to add Comprehensive coverage to your insurance policy if you reside in a region where wildfires could endanger your home or your car. This insurance covers damage to your car caused by fire. This way, you'll be aware of which coverage is relevant when you ask yourself, "My car caught on fire; will my insurance cover it?"
Weather-related incidents versus weather-related damage
Let's use examples to clarify the differences between the two scenarios.
An incident involving a car and bad weather. Consider the following scenario: You are in an automobile accident and hydroplane off the road due to rain brought on by a tropical storm. You then hit a tree. Even if the weather was a factor, it qualifies as a collision for which you'd require Collision coverage on your policy to help with car damage.So far, we've been discussing about severe weather-related vehicle damage. Let's assume you park your car in your driveway and a sudden hailstorm blows in, causing multiple dents, cracks, and dings to your vehicle. Because the weather was to blame for the damage, Comprehensive coverage would apply.
Consider adding Comprehensive and Collision coverage to your policy as you weigh your coverage options, keeping in mind the locations where your car will be driven and stored.Prepare with a car kit for harsh weather Mother Nature may be unpredictable at times, so being ready for unforeseen weather situations can be crucial. We've discussed the essentials for a car emergency kit, but there are a few prominent examples of extreme weather that may call for additional preparations for your car kit.
Heavy snow: add sand or cat litter, tyre chains, thick gear and a tow line.
Include evacuation maps, batteries, extra clothing, and waterproof bags for vital documents when there is a lot of rain and wind.
Fires: equip your vehicle with a portable fire extinguisher and an escape kit.
It's critical to have coverage for the unexpected just as it is to be ready for the unexpected with the items you keep in your car. How do we interpret that? Keep in mind that which coverage is applicable to the damage will depend on how your car was damaged (in an accident versus by the weather). Reviewing all of the coverages offered by your auto policy is a wonderful place to start due to unforeseen events.
What about all that coverage? It may seem expensive. Fortunately, though, auto insurance isn't always necessary, especially for careful drivers. A careful driver will drive within the speed limit, abide with traffic regulations, and limit distractions while driving. Additionally, telematics-based insurance, like as HiRoad, rewards drivers for these actions with a monthly discount on their insurance premium.
You don't have to forgo coverage to save money. With HiRoad, you may have the best of both worlds while saving money for a rainy day.
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