Will Your Auto Insurance Weather the Storm?

Hurricanes, floods, tornadoes and hailstorms can wreak havoc your car, as well as your home. "But when it comes to insurance, people shopping only for the lowest rates too often don’t notice their lack of certain types of coverage until they try to make a claim," says Ron Berry, senior vice president for the Council of Better Business Bureaus.

According to ISO’s Property Claim Services (PCS) unit, the recognized authority on insured property losses from catastrophes in the United States, Puerto Rico and the U.S. Virgin Islands, the number of vehicle losses due to hurricanes, floods, tornadoes, large hailstorms, firestorms and other severe storms nearly doubled in the five years between 2001 and 2005.

The Insurance Information Institute (I.I.I.), a non-profit organization, says comprehensive coverage will reimburse you for loss due to damage caused by something other than a collision with another car or object, such as fire, falling objects, catastrophic storms, vandalism, or contact with animals such as birds or deer. Flooding also is covered by auto insurance, as long as your policy includes comprehensive.

"But, even if you have comprehensive coverage, it is not always guaranteed to meet your individual needs," says Carolyn Gorman, vice president of the I.I.I. "For example, you may be surprised to discover that after a storm your auto insurance does not automatically cover the cost of a replacement rental car while your car is in the repair shop or you wait for authorization for a new car from your insurance company. And, few people realize that renting a car for one day can cost more than one full-year’s coverage for rental reimbursement."

Know what your auto insurance covers and what you should do if your car is damaged in a storm, including the following tips:

	Know what your insurance covers. Be familiar with the details of your coverage. For example, don’t wait to find out that your policy doesn’t include comprehensive or won’t automatically cover costs for emergency roadside assistance or a replacement rental car. Report damage as soon as possible. If your car is not drivable, your agent or claims center may be able to save you time and money by having the car towed directly to the repair facility instead of to a temporary storage facility. In addition, arrangements may be made immediately to provide you with a replacement rental car, if your policy includes this coverage. Know what your deductible is and any other additional charges before authorizing work. Expect your insurance adjuster, claims representative or repair facility appraiser to review the damage with you and explain the repair process, including the use of original or generic auto parts. Before authorizing repairs, know what your deductible is, as well as any additional charges you will be expected to pay once repairs are complete. Ask about warranties on repairs. Ask whether your insurer has a repair facility referral program that offers a written limited or lifetime repair warranty backed both by the repairer and insurer for as long as you own your vehicle. Do business only with a reputable company. Obtain insurance from companies, independent brokers or direct marketers that have a proven track record of handling auto insurance claims effectively. Get a referral or contact your local Better Business Bureau or State Department of Insurance.