Do Severe Hurricanes Cause Car Insurance Rates to Rise?
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We are in the middle of Hurricane season, and unfortunately severe storms have already caused extensive damage across the United States.
One of the most recent storms, Hurricane Ida, recently wreaked havoc in Louisiana. And remnants of that storm also recently caused severe flooding in the northeast.
As a result, many people have had not only their homes damaged, but also their cars. With an increase in claims due to the auto damage caused by the storm, car insurance rates could be affected.
With an increase in claims and auto damage due to recent hurricanes, car insurance rates could be affected.
Damage that hurricanes can cause to cars
Many people tend to think that hurricanes mostly cause damage to houses and buildings, but cars are also at risk when there is severe weather.
Car damage is especially common during a storm when there is severe flooding, as SILive.com points out. Even if a car is just partially submerged in water, it can cause extensive damage that may even be unrepairable.
In addition, hurricane winds can be so strong that flying debris may damage your vehicle.
This is why before a storm, it’s a good idea to make sure you have good comprehensive car insurance, which covers you in the event of a natural disaster.
Hurricanes and car insurance
A few years ago, USA Today warned of rising car insurance and home insurance rates due to hurricanes, and claimed it could even impact states not hit hard by the storms.
The report indicated that residents of states hit by recent hurricanes and nearby states could expect to see their premiums rise as insurance companies pay out billions of dollars in claims.
In fact, USA Today said there were $20 billion to $25 billion in estimated U.S. insured losses due to Hurricane Harvey and $40 billion to $60 billion from Hurricane Irma in 2017. According to Reuters, the recent Hurricane Ida could see $15 billion to $30 billion in claims.
As USA Today reported back in 2017, neighboring states to those hit by the hurricanes that year stood to see rate increases in car insurance because some insurers calculate car insurance rates regionally.
The report pointed out that insurers actually can’t increase premiums in random states to make up for large payouts to hurricane victims—but it’s still possible for a ripple effect to occur.
But it’s not just severe hurricanes that cause car insurance rates to rise. According to USA Today, things like distracted driving incidents across the country also help contribute to car insurance rate increases.
Get covered with Jerry
If you’re looking for an affordable comprehensive car insurance plan to protect your car before a storm hits, Jerry can help. It can also help you find affordable car insurance rates even if you find you’re paying more after severe hurricanes have it.
Jerry compares quotes from up to 50 different insurance companies for you in under a minute, without any long forms to fill out.
Jerry will send you quotes that compare to your current coverage—and as a licensed broker, it takes care of your insurance needs from start to finish. The app also monitors your car insurance rate every six months on an ongoing basis.