Does car insurance cover earthquake damage?

If you live in certain parts of the country, like California or the Midwest, you may be concerned about an earthquake damaging your vehicle. Unfortunately, you may have to pay out of pocket for earthquake damage if you have minimum auto insurance coverage.

However, comprehensive insurance covers various damages, including those caused by an earthquake. In addition, comprehensive covers theft, vandalism, falling debris, and acts of nature such as fires and floods.

Comprehensive coverage is relatively inexpensive and provides a lot of protection. However, keep in mind that filing a comprehensive claim may increase car insurance rates. So, only file a claim if you can’t pay for repairs yourself.

Keep reading to learn more about what car insurance you need to cover earthquake damage.

What auto insurance covers earthquake damage?

Most states require drivers to carry at least a minimum amount of liability coverage. However, no states require collision and comprehensive auto insurance. 

While liability auto insurance coverage pays for property damage and bodily injuries to others, collision insurance and comprehensive coverage pay for damages to your vehicle. Car insurance won’t cover an earthquake if you only have the minimum coverage. 

If you want damage to your vehicle from an earthquake covered by car insurance, be sure to add comprehensive coverage to your policy.

Let’s dive into what comprehensive car insurance covers, how much it costs, and if you need it.

What does comprehensive auto insurance cover?

Some drivers don’t understand the difference between collision and comprehensive car insurance since they both cover damage to your vehicle. However, collision only covers damages to your vehicle resulting from hitting another vehicle or object.

Comprehensive coverage pays for damages to your vehicle unrelated to an accident that is out of your control. So, comprehensive coverage kicks in if an earthquake causes a tree to fall on your car.

Comprehensive insurance covers:

• Theft
• Vandalism
• Earthquakes
• Falling Debris
• Fire
• Flood
• Riots
• Hurricanes

Since comprehensive coverage pays for weather-related damage, any earthquake damage is covered. Therefore, you don’t need separate coverage if you live in an area where earthquakes are common if you already carry a comprehensive policy.

Keep in mind that you need comprehensive coverage on your car insurance policy before the ground starts shaking. Unfortunately, many insurers don’t allow you to add coverage right before or after a natural disaster.

How much is comprehensive car insurance?

Car insurance rates vary by state, insurer, and driver. However, comprehensive coverage is typically inexpensive to add to your policy. The average cost for comprehensive insurance is just $13 a month.

This table shows the average monthly cost of comprehensive coverage in each state.

Comprehensive Auto Insurance Monthly Rates by State

The best comprehensive auto insurance companies include Geico auto insurance and Nationwide auto insurance. However, rates vary by driver. 

Your comprehensive coverage costs depend on several factors, including your deductible. Your deductible is how much you pay before your car insurance kicks in. Higher deductible policies have lower rates. So, choose the highest deductible you can afford to keep rates low.

Many drivers opt for full auto insurance, combining their state’s mandatory coverage with collision and comprehensive. You will get the most protection with fully comprehensive car insurance coverage, but it comes with higher rates.

How does an earthquake affect comprehensive car insurance rates?

While comprehensive coverage is typically inexpensive, using your coverage may be costly. For example, your rates may increase when you file a comprehensive car insurance claim.

Most car insurance claims affect rates for three years. So, before you file a comprehensive car insurance claim, determine if it’s cost-effective. It may be cheaper to pay for damages yourself rather than pay for a three-year rate increase.

In addition, some insurers revise rates after a large-scale event. Since they will pay more in claims than usual, a rate revision allows them to increase rates across the board. 

When do you need comprehensive car insurance?

Comprehensive car insurance is not a requirement to drive legally. Instead, it’s an add-on that’s entirely up to each driver. So, why buy more than the minimum car insurance required? 

First, if you have a car loan or lease, your lender may require you to carry collision and comprehensive coverage. This protects their investment in the event your vehicle is damaged. In addition, many lenders require GAP insurance coverage, which covers the difference between what your vehicle is worth and what you owe.

Second, you need comprehensive coverage if your car is expensive and you can’t afford to pay for repairs yourself. Remember, if you don’t have the proper coverage, you’ll have to pay out of pocket for repairs or a replacement vehicle. 

Not every driver needs comprehensive coverage. However, if you live in an area prone to natural disasters, comprehensive coverage helps pay for a variety of damages that may occur.

Does homeowners or renters insurance cover your vehicle?

Unfortunately, homeowners and renters insurance doesn’t cover damage to your vehicle. In fact, many homeowners’ and renters’ insurance policies exclude earthquakes because of catastrophic losses. 

If you live in an area prone to natural disasters, you can get separate insurance, such as Progressive earthquake insurance, which isn’t included in homeowners or renters coverage. 

For example, California earthquake insurance estimates are handled by the California Earthquake Authority, not individual insurers. 

In addition, some top insurers use other companies for earthquake insurance. For example, earthquake insurance from Geico for homeowners is handled through Arrowhead.

Auto Insurance for Earthquake Damage: The Bottom Line

There isn’t specific earthquake insurance that covers your vehicle. Instead, comprehensive insurance covers vehicle damages from earthquakes and other natural disasters.

Comprehensive coverage is usually around $13 a month and can be easily added to your car insurance policy. However, filing a comprehensive claim may raise rates for three years.

Since comprehensive pays for damages to your vehicle unrelated to an accident, it protects you from high out-of-pocket costs for things out of your control.

Comprehensive coverage rates vary greatly, so compare quotes from multiple insurers to get the cheapest earthquake damage protection.