Does Auto Insurance Cover Pothole Damage?

Pothole damage is considered a loss arising from hitting an object on the road and normally covered by Collision coverage so you can only make a claim if you have this coverage on your car insurance policy. Remember that collision coverage comes with deductibles and therefore, the damages may need to be substantial for it to be worth making a claim. Often hitting a pothole may damage a tire or wheel, which may not amount to much loss. That is why it may not exceed your deductible and even if it does, you may need to consider if it is worth claiming since it would likely increase your auto insurance premium in most cases.

If you hit a pothole and suffer damages, you should document the damages, take a picture or video of the pothole you hit, record time of the day and road conditions. If there was a witness, it would be great. Normally, depth of the pothole isn’t important to auto insurers so you may not need to measure it.

In rare cases, hitting a pothole can cause damage to your suspension, steering and wheel alignment as well as damaging a tire and wheel. Then, you may want to consider making a claim. So, you should get an estimate from at least two mechanics for the repairs before considering if it is worth making a claim.

Collision vehicle insurance coverage is for hitting another vehicle, a tree, road sign, post, rails, obstacle on the road or pothole. So, it is a collision claim and not comprehensive. Usually, it is a single vehicle incident that makes it easier to decide paying out of pocket. If you decide to make a claim, some companies may consider it as an at-fault claim (although not as bad as crashing the car into a tree or to another vehicle) since there is nobody else to blame. So, a pothole damage claim may increase automobile insurance rates.

At times, city, county or state authorities may pay for pothole damages and therefore it may be an option to submit a claim with them. However, they usually take a long time to pay and this may be a problem if your vehicle is inoperable and you don’t have the money to pay for repairs. Hence, you may think about claiming on your insurance. Otherwise, you may have to pay for the repairs out of pocket first and submit a claim with the relevant authority.

Deciding whether to make a claim on your car insurance for pothole damage depends on several factors. Here are some considerations to help you make an informed decision:

  1. Severity of the damage: Unless it is a deep pothole and you were travelling at a high speed, it is likely to be a minor incident with only a punctured tire and scratches with relatively low cost of repairs. In such cases, it might be more cost-effective to pay out of pocket rather than making a claim. Otherwise, get at least two estimates from repair shops to determine the cost of fixing the pothole damage to decide what to do.
  2. Deductible amount: Check your collision deductible, which is the amount you are responsible for paying out of pocket before the insurance coverage kicks in. If the repair costs are close to or lower than your deductible, it may not be worth filing a claim. If the repair costs significantly exceed your deductible, it may be worthwhile to file a claim.
  3. Future premium increases: Making a collision claim can lead to an increase in vehicle insurance premiums. Evaluate the long-term financial implications before deciding to file a claim.
  4. Coverage limits: Check your policy to see if you have coverage for all your damages. Some policies may have specific exclusions related to this type of damage. For example, your policy may not have coverage for custom rims you have, although they may cover standard rims.
  5. History of claims: If you have recently made other claims, filing another one may further impact your premiums. Automobile insurers often consider the frequency and severity of claims when determining rates.

Referring to vehicle insurance policy for clarification can allow you to make an informed decision. You may also contact your insurer or agent and have an informal chat about what is covered and likely premium increases. If you are not sure about making a claim or not, you should ask your agent or insurer if you could ask a question without giving your name and policy details to avoid them opening a claim file for the incident. In any case, make it clear that you are not making a claim and just asking for advice.