Extreme weather events have become increasingly frequent across the U.S. The back-to-back hurricanes, increased flooding, and irrepressible wildfires are causing immense economic damage to entire communities. Here is how these weather events might affect your auto insurance premium.
Frequent Weather-related Claims
Because cars are often exposed to weather elements, they are predisposed to the dangers wrought by extreme weather events. Therefore, when a natural disaster strikes, there is usually a surge in the number of property damage claims. If the number of claims in a particular area spikes, it could easily cause insurers in that community to suffer huge losses.
Insurance companies typically raise rates across the board. The insurance rates are hinged on the frequency of claims within your area. Because extreme weather events often lead to more claims, insurers may be forced to spend more in areas prone to natural disasters. Consequently, they may raise insurance rates to make up for their increased costs. Therefore, if you live in an area prone to extreme weather events that cause car damage, you’ll likely pay more in car insurance premiums. Conversely, the weather has little impact on auto insurance rates in areas that have more mild weather conditions.
Seasonal weather conditions can also impact auto insurance rates. If you live in an area where winter comes with snow, icy roads, blocked roads, and other conditions that make driving more treacherous, you’ll likely pay more. It’s worth noting that weather events impact only comprehensive auto insurance rates. While comprehensive coverage excludes collision, it covers a wide range of perils, situations, and events including:
- Natural disasters such as floods, hurricanes, tornadoes, earthquakes, and more
- Fallen objects like ice, trees, branches, or projectiles
- Riots and vandalism
- Theft (both of the entire vehicle and parts)
- Broken windshield
- Accident involving animals
In areas vulnerable to extreme weather events, comprehensive insurance is a vital investment. Comprehensive auto insurance rates may be higher in areas prone to natural disasters, but it’s those who reside in such areas that usually need and benefit from comprehensive coverage the most.
Weather Conditions That Can Impact Your Auto Insurance Rates
The types of weather that can impact your auto insurance premiums include:
- Flash flooding
- High wind
Though these conditions themselves may not be damaging, they can increase the chances of vehicles getting damaged or being involved in accidents.
How to Manage the Increase in Weather-related Claims?
If you live in a disaster-prone area or are worried about your premium rising, you should talk to the experts who can help find options that will keep your auto insurance rates in check. You may also save on your current policy through discounts. Moreover, they can help you assess other policies and find a more suitable and affordable auto insurance policy. Additionally, you should take precautions to protect your vehicle from weather damage. This may mean parking in a carport or garage and avoiding parking where your vehicle is exposed to perils, like under trees. You should also take the necessary precautions when driving in harsh weather.
Insurers periodically assess claims made in an area within a particular period. A surge in claims due to weather-related events or any other reason can lead to an increase in premiums. If you are looking for customized and cost-effective car insurance in Fresno, CA, contact McCarty Insurance today. Our team of automobile insurance experts will help you find an affordable policy that adequately protects your car.