Earthquake Insurance for your Auto

Where do you purchase Earthquake Protection for your Auto Policy

Does Comprehensive Auto Coverage cover for Earthquake Damage

Do you Need a Separate Policy to cover your Auto from Land Movement?

Do you Need a Separate Policy to cover your Auto from Land Movement?

In general, you do not need a seperate auto policy to protect your car from earthquakes. In general you should purchase what is known as Comprehensive Auto Coverage. Occassionally this is called Other than Collission Coverage. However confirm this coverage with your agent and insurer to be certain. Comprehensive is a typical coverage that most American insurers offer on auto policies.

This is distinct and different from Home Insurance which flat out excludes earthquakes [via a land movement exclusion.]

Does Comprehensive Auto Coverage cover for Earthquakes?

Does an Auto Insurance policy cover your personal vehicle for earthquakes?

Reviewing your auto policy to confirm that you have coverage for earthquakes can be challenging as many insurers do not readily admit to it. At least in their marketing material. Allstate states that : Comprehensive helps cover damage to your car that’s not the result of a collision, such as…Natural disasters (like a hurricane or a tornado).” This is typical marketing around the subject.

Farmers insurance simply states “Comprehensive provides coverage for events outside your control that are not caused by a collision, like weather, vandalism and theft.” No real mention of any land movement in this phrase.

Prime Insurance states: “In the event your vehicle suffers damage due to an earthquake, a comprehensive auto insurance policy may cover related repair-work.” Note the use of the word “may.” I bet the residents of Humboldt county, who endured a recent quake might love that term.

The III more clearly states: ” the coverage [Comprehensive] is cost-effective considering it covers damages to the vehicle caused by the following:…Natural disasters such as earthquakes, floods, hurricanes, tornadoes and volcanic eruptions….” However the III is not an actual insurer.

Frankly the only way you can know with certainty is to review the actual insurance companies forms. According to the Wawanesa Personal Auto Policy, form PAP 01 06, page 9, under Insuring Agreement, Section C: ““Comprehensive” loss includes, but is not limited to, loss caused by the following:…Explosion or earthquake…”

National General [an Allstate Company] CAIP400 (03012006), page 14, states: “Loss caused by the following is considered other than collision:…Explosion or earthquake…”

The ISO Personal Auto Policy filed with the State of NY, form PP 00 01 06 98, page 7: Defines Collision in this way: “Collision” means the upset of “your covered auto” or a “non-owned auto” or their impact with another vehicle or object. Loss caused by the following is considered other than “collision”:

1. Missiles or falling objects;
2. Fire;
3. Theft or larceny;
4. Explosion or earthquake….” and of course there is a lot more.

This seems to indicate that Other than Collision Coverage protects you from Earthquake damage on this policy and in this state. But check with your own insurer.

Please note that online, many sources will flat out state that autos damaged from earthquakes are covered. We do not agree with this broad based statement. Read your policy, that is the main take away from this discussion.

What is Comprehensive Auto Coverage?

State Farm explains “Comprehensive coverage pays to repair or replace a covered vehicle that’s stolen or damaged by something other than collision or rolling over.” Further: “Even glass claims and windshield repair. For example, damage caused by fire, wind, hail, flood, theft, vandalism, falling objects, and hitting an animal is covered.” Source.

That NY ISO Form is one that we like to referance again here: “”Collision” means the upset ….. or…impact with another vehicle or object. Loss caused by the following is considered other than “collision”: 1. Missiles or falling objects; 2. Fire; 3. Theft or larceny; 4. Explosion or earthquake; 5. Windstorm; 6. Hail, water or flood; 7. Malicious mischief or vandalism; 8. Riot or civil commotion; 9. Contact with bird or animal; or 10. Breakage of glass.” That is the Insurance Services Office, Inc definition from 1997. And not all insurance policies are the same. In fact signfiicant differences exist.

We these two definitions you can get a general sense of what Comprehensive or Other than Collision coverage is for. Claims involving no Collissions. Speaking of earthquakes though – since the vehicle is often not moving here – it could be covered by Other than Collission coverage.

As to what happens when you are driving in your auto when the earthquake strikes and this causes the accident…. we will not attempt to get into that.

Comprehensive vs Collision Coverage:

Collision and Comprehensive are different types of property coverages on the typical American Auto Policy. Collision and Comprehensive are often sold together – often hand in hand. Many consumers have the exact same deductible for each. Many consumers are not aware that you can get different deductibles for these two. Most consumers are not aware of the differences.

In general comprehensive coverage is far less expensive than Collision coverage. Comprehensive goes by the name of Other than Collision Coverage as well.

Simply put – Collision is usually [but not always] when the auto is moving and when it collides with things. Comprehensive is much of the other stuff.

An Additional Reason to Consider Comprehensive Coverage:

Within the definitions of many of these policies you will not only note coverage for earthquake but for flood. As in ISO number 6 “Hail, water or flood.” And this is very important here for most Americans. Floods are likely the most destructive and expensive peril in the world. Therefore even if you are not interested in Earthquake Coverae for your vehicle, you may want to get Comp Coverage for the Flood protection portion.

A short caveat here – ask your insurance agent about your earthquake coverage on your vehicle to be certain of your level of protection. Do not assume based on this article that purchasing Comprehensive coverage solves this risk for you.