Hurricanes And Car Insurance

Hurricanes and other extreme phenomena have a devastating impact when they unveil their full might. Their destructive potential is one of the worries of any insurance company. It is well known the fact that companies struggle to reimburse their clients after such event. Find out more about hurricanes and car insurance. Also, you should get free quotes for car insurance from our website and check which company will provide the best reimbursement.

# comprehensive-car-insurance-3When dealing with damage caused by natural events, there’s only one policy that provides coverage. This is comprehensive car insurance. It comes with a deductible which has to be paid before the company pays for the rest.

There are some things you should be aware of. Insurance companies always monitor the weather reports, especially for areas where hurricanes struck frequently. As you can expect, coastal areas are intensely monitored.  But insurance companies do not do that out of concern for the policyholders. No, in fact, they do it in order to protect their financial interests.

As soon as a new hurricane is detected and its trajectory has been plotted, the company will seize to sell more coverage in this area. It is natural for people to buy more coverage when they hear the terrible news. Insurance companies put restrictions in place called “binding restrictions,” which prevent their agents from selling new insurance for vehicle damage in certain zip codes, or even whole states, if the probability of a damaging storm is high.

So, the potential claims payout is far higher than the fees the insurance company would earn from those new policies. And no company wants to lose serious money.

Each car insurance company decides when the risk is large enough to turn down business and put restrictions in place. But the typical time is with a few days before the hurricane arrives.

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