Car Insurance - check before storms hit

By JIMMY SETTLE
The (Clarksville, Tenn.) Leaf-Chronicle

06/26/2006

From tornadoes, hurricanes and hailstorms to floods and wildfires, it's been a stormy year thus far across the nation. That's not only traumatizing, but terribly expensive.

For property owners, including auto owners, the combined price tag from all of these natural disasters is still soaring.

In fact, the first half-decade of the 21st century brought a steady rise in the number of vehicle losses because of natural disasters. That number nearly doubled in the five years between 2001 and 2005, according to ISO's Property Claim Services unit, which tracks insured property losses from catastrophes in the U.S., Puerto Rico and the U.S. Virgin Islands.

The number of reported claims for vehicle loss from natural disasters recorded by PCS increased steadily, from 485,150 claims in 2001 to 982,350 claims in 2005, for a total of 3.3 million losses over the past five years.

PCS's numbers track auto insurance claims on vehicles with insurance policies that include comprehensive coverage, which covers damages or loss due to natural disasters, catastrophes or events other than a collision with another car.

"Drivers spend a lot of money on auto insurance and it is important for them to be as familiar as possible with what their coverage includes when they're making their purchase decision," said Lori Austin, branch manager of the Tenn-Tucky branch of the Better Business Bureau. "But too often, people shopping only for the lowest rates don't notice their lack of certain types of coverage until they try to make a claim."

The best advice, she said, is to know what your auto insurance covers and what you should do if your car is damaged in a storm by following these tips:

Be familiar with the details of your coverage. Don't wait to find out that your policy doesn't include comprehensive coverage, 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. Also, be aware of 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 BBB or state Department of Insurance.

According to the Insurance Information Institute, 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.

Flooding also is covered by auto insurance, as long as your policy includes comprehensive.

Comprehensive insurance is usually sold with a $100 to $300 deductible, though you may want to opt for a higher deductible as a way of lowering your premium.