Potholes Cost Insurers, Consumers $27B
March 12, 2015
As you may have found out the hard way, hitting a pothole
could damage your tires, wheels, shocks, or struts. Repairing that damage can
be expensive. According to AAA, repair costs can range from $50 for a simple
wheel alignment to $500 or more for replacing a top-of-the-line alloy wheel.
Over the life of a car, insurance agents say that a driver can pay up to $2,000
or more in repair costs due to damage from poor road conditions
Poor road
conditions have cost consumers and the insurance industry at least
$27 billion over a five year period, according to a 2014 survey commissioned by
Trusted Choice and the Independent Insurance Agents & Brokers of America.
The survey also reveals that from 2009 to 2014 half of car owners experienced damage to their vehicles as a result of potholes.
“The snow, ice and freezing rain during the rough winter
months left their mark on the country’s roads,” says Robert Rusbuldt, Trusted
Choice president and Big “I” president & CEO. “Severe potholes have led to
accidents which may impact insurance rates, as premiums are determined by past
claims, accidents and driving violations. Potholes and poor road conditions
aren’t just an inconvenience, they are an expensive and dangerous result of
harsh winters.”
The pothole survey also found that 31 percent of car owners
who reported pothole damage to their vehicles filed a claim with their
insurance company. A surprising 65 percent of respondents who needed repairs
said they (or a third party) paid out of pocket for the vehicle to be fixed.
Only about 3 percent said local authorities stepped in to foot the bill. For
about 40 percent of respondents, that bill was more than $500.
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