Does Your Auto Insurance Cover Pothole Damage

Dated: March 6 2014

Views: 6605

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?. 
Pothole Accidents
When hitting a pothole causes you to hit another car, or a pedestrian, then your liability insurance kicks in. You must have that unless you live in New Hampshire, where it's not required.
Liability covers damage and injuries you, or a designated driver, cause.
Blog author image

Jill Biggs Group

Jill Biggs leads the top-producing real estate team in Hudson County, N.J., a booming market located just outside of New York City. With more than a decade of experience serving Hoboken, Jersey City a....

Want to Advertise on this Site?

Latest Blog Posts

What Impacts Property Values

When a homeowner is ready to sell their property, the first question is, “How much is my home worth?” We all know that the real estate market fluctuates. This is partly due to external

Read More

Fall Fun In New Jersey

Whether it’s your favorite season or you are mourning the end of summer, fall is in full swing. You don’t have to be a pumpkin spice lover to appreciate what fall brings to the state. Living in

Read More

Amplify Your Space

One thing most people have been craving this year is more space. As we settle into fall, cooler temperatures and shorter days mean we’ll be spending less time outside and more time in our homes.

Read More

Prepare For The Fall Market

Fall has officially begun. Usually, we start to see a downshift in the market this time of year, but we all know 2020 has been anything but typical. In Hoboken and Jersey City, there is

Read More