You've hit a pothole. Now what?
Road potholes are especially prevalent in the winter months and can cause significant damage to your automobile. You may wonder if your auto insurance covers pothole damage.
The good news is, if you have collision coverage included with your auto insurance policy, you are most likely covered. Let’s take a brief look at the difference between collision and comprehensive coverage.
Collision coverage
Collision coverage pays for the cost to repair damages to a vehicle due to an accident, either with another vehicle or an object (like a pothole).
Comprehensive coverage
Comprehensive coverage pays for damage to your vehicle that is caused by theft, vandalism, fire, natural disasters or hitting an animal.
How does insurance cover the pothole repair cost?
The repair cost to fix the damage caused by hitting a pothole is subject to your collision insurance deductible. The deductible is the amount you pay out-of-pocket before insurance picks up the cost.
Generally speaking, the lower your deductible, the higher your premium (this is the amount you pay for auto insurance coverage).
So when you purchase collision and comprehensive insurance, you select a deductible amount that fits your budget.
For example, if you select a collision deductible of $500, this is the amount you will pay before your auto insurance coverage picks up the rest of the repair cost.
Our recommendation: get fully covered with collision and comprehensive coverage
Though your state laws may not require you to purchase both collision and comprehensive coverage for your automobile insurance policy, it makes perfect sense to do so. These coverages provide specific protection for various losses, which can cost you big in the event that your vehicle is damaged or stolen.
