LOS ANGELES, CA,October 21, 2017 /24-7PressRelease/ — Natural disasters like hurricanes tend to increase car insurance rates. Most cars on the path of hurricane and storms run the risk of getting damaged. The most prudent choice is not to drive the car out on such weathers. Unfortunately, powerful storms can still damage vehicles when parked or inside the garage. Insurance companies will also increase the rate when they have to make large payments to many policyholders at the same time.
Natural Disaster and Its Effect on Insurance
It’s normal for a policyholder to have their car insurance premium increase once they file a claim for the damage their vehicle has incurred from a hurricane. There are also situations when a person’s insurance rate increases even though when their car is not damaged in the natural disaster. Companies have no choice but increase their rate during situations where they need to pay millions to settle a lot of claims from the natural disaster.
If a certain a state or location is prone to certain natural disasters such as hurricanes or tornado, the insurance rate in that area is more likely higher compared to other places. For instance, flood insurance coverage is higher in some place like Florida than in Utah.
Flow to File an Insurance Claim for Car Damaged by Natural Disasters
Once a car is damaged by a natural disaster, the owner should immediately take pictures of the damaged parts. They should now contact their insurance company to file a claim. If the claimant has relocated or has changed any information, he or she should include that too. Some insurance companies will only accept natural disaster claims for a certain period of time only.
Ways to Reduce Insurance Rates
Car owners living in natural disaster prone areas have little choice but to accept the higher premiums. Fortunately, there is a way for people to reduce their insurance costs. Cars with lower carbon emissions or energy demands qualify can qualify for insurance lower rates. The current thinking is that high carbon emissions have a negative impact on the weather.