Pothole insurance takes hold in auto industry
| April 30, 2014 |
How much would you pay to protect your vehicle from pothole damage?
Some car owners are adding an additional cost to their regular maintenance plan by purchasing insurance that protects against potholes, USA Today reports.
The insurance, known as road hazard insurance, protects cars — tires and wheels, in particular — from damage caused by road damage such as potholes, which have been reported to cost individual drivers $700 each year.
One company, Safe-Guard, has been offering the protection plans for more than 10 years. Its tire and wheel protection customer base has grown 350 percent in the past five years.
More drivers are likely to purchase a protection plan from Safe-Guard and other insurance providers in the coming months due to an exceptionally harsh winter that created more potholes than usual in many states.