In general, your auto insurance should cover any damage caused by potholes as long as you carry collision insurance on your policy.
Collision Insurance Does NOT Cover:
If you have collision insurance, it does not cover general wear and tear of the vehicle. Most people don’t realize that also does not cover your tires because of a pothole or other bad road conditions.
Collision Insurance DOES Cover:
However your collision insurance does cover damage to your vehicle itself such as your wheel-well because of potholes and bad roads. It also covers things like hitting a guard rail or sign post, running off the road into a ditch, and most obviously, hitting another vehicle. Hitting a pothole may cause other harder to see damage such as to your steering or alignment which would be covered under your collision plan.
Collision and Costs:
Collision insurance coverage is an optional item in your policy, and comes with a deductible. You determine the amount that you want to pay out of pocket as a deductible for the cost to repair your vehicle because of damage. You can usually lower your yearly insurance costs by opting for a higher deductible.
Comprehensive and Collision Cover Different Things:
Comprehensive insurance coverage is also optional. Your comprehensive part of your policy covers non-traffic related damages. It reimburses the owner for things such as theft of your car, damage from something falling on such as a tree, and vandalism or flooding of your car.
When Does Liability Insurance Enter the Picture for Potholes?:
Just like the rest of the United States, you are required to have Liability insurance to drive in Minnesota. Liability covers injuries that as the policy holder, you cause to someone else. In the case of damage or accident from a pothole, if you hit another vehicle or a pedestrian, then your Liability insurance would cover the injuries.
Facts from NAIC – How Do You Compare?:
The National Association of Insurance Commisioners (NAIC) has facts and data on the number of people that carry the various types of insurance. In 2015, 73% of insured drivers had Collision coverage and 78% had Comprehensive.
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