Dropping the optional comprehensive insurance coverage on an older automobile may sound like a good way to save a few bucks. But you might want to reconsider if you live in a coastal region.
If your car is damaged or destroyed in a storm, you’ll be footing the bill for its repair or replacement when the cost of buying another car has gone through the roof. That’s because severe storms total thousands — sometimes hundreds of thousands — of cars.
So, prices will likely rise on the undamaged cars up for sale as drivers scramble to purchase vehicles to replace the ones they lost.
What kind of car insurance is covered by hurricanes?
Comprehensive car insurance, also known as “other-than-collision” coverage, protects your vehicle from damages caused by non-collision events. This includes theft, vandalism, fire, natural disasters like floods or hurricanes, falling objects and animal-related accidents.
It covers the cost of repairs or, if the car is deemed a total loss, compensates you for its current market value. Comprehensive coverage is often optional but is usually required if you have a loan or lease on your car.
Comprehensive insurance pays out up to the actual cash value of your car, minus your deductible, to replace stolen cars and for damage caused by the following:
- Flooding
- Falling objects
- Hail
- Fire
- Vandalism
- Animal strikes
When should I buy coverage?
Most car insurance companies implement temporary binding restrictions when a hurricane or tropical storm watch or warning is issued. These restrictions vary by insurer and state, but often include halting new policy applications and changes to existing policies, such as adding physical damage coverage, increasing coverage limits, or lowering deductibles.
Typically, restrictions begin when a watch or warning is announced and remain in effect for 48 to 72 hours after it ends. To avoid complications during hurricane season, consider renewing your policy early or purchasing insurance ahead of time if you’re planning to buy a new car.
How to prepare for a hurricane
Preparing for a hurricane involves taking important steps to protect your home, family, and belongings. Follow this checklist to stay safe and minimize potential damage:
- Create an emergency plan: Include evacuation routes, meeting points and emergency contacts.
- Build a disaster supply kit: Stock up on nonperishable food, water, medications, flashlights, batteries and a first-aid kit.
- Secure your home: Install storm shutters, trim trees and reinforce garage doors.
- Move outdoor items indoors: Bring in furniture, grills and other items that could become projectiles in strong winds.
- Protect important documents: Store documents in a waterproof container or a digital backup.
- Stay informed: Monitor weather updates and follow instructions from local authorities.
- Evacuate if necessary: If an evacuation order is issued, leave immediately and follow your emergency plan.
Other types of insurance that come into play with hurricanes
While comprehensive coverage is a good starting point, it’s not the only insurance you should have if a hurricane strikes.
Comprehensive covers your vehicle if it sustains damage from things like wind, flooding, and flying objects, but if there are valuables in your car, you need to have homeowners or renters insurance, or those losses won’t be covered.
Another consideration is whether your auto insurance policy provides for a rental car if your vehicle is knocked out of commission. Even with rental reimbursement coverage, there can be limits on the amount you’re reimbursed per day.
Other types of insurance to consider are gap coverage, which pays off your vehicle loan if your car is destroyed and the amount you owe is greater than the car’s value; or new car replacement insurance, which will provide you with a new car if your car is totaled during the first year or two you own it.
The key is to figure out in advance the range of auto insurance options available from your car insurance company that will best meet your needs. Otherwise, there’s a good chance your insurer won’t allow you to make changes if you wait till a hurricane is about to make landfall.
FAQ: Hurricane damage
When doesn’t car insurance cover hurricane damage?
If you only have liability car insurance coverage, your vehicle will not be protected from hurricane damage. Collision coverage also doesn’t protect against weather damage.
Which states are prone to hurricanes?
The National Oceanic and Atmospheric Administration ranks Florida as the top state for hurricane landfalls, followed by Texas in second place and Louisiana in third. Other states frequently hit by major hurricanes include North Carolina, South Carolina, Alabama, Georgia, New York, Mississippi, Massachusetts, Connecticut, New Jersey and Rhode Island.
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Laura Longero is an insurance expert and Executive Editor at CarInsurance.com, where she specializes in helping consumers navigate the complexities of the financial and insurance industries. She has 15 years of experience educating people about finance and car insurance. Prior to joining CarInsurance.com, she worked as a reporter and editor at the USA Today Network. Her expertise provides readers with practical guidance, helping them make informed choices about their financial and insurance needs.
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