OAI: Conn. Disaster Aid Announcement Underscores Need to Review Auto Insurance Coverages

HARTFORD, Conn., Oct. 12, 2011 /PRNewswire/ -- The recent announcement that Connecticut has gotten more than $5 million in federal aid to help residents recover from Tropical Storm Irene underscores the importance of being sufficiently insured against damages caused by natural disasters, according to Online Auto Insurance (OAI).

Catastrophic weather events nationwide have racked up billions of dollars in damages this year. So whether a vehicle policy will cover losses due to natural disasters is something consumers should keep in mind when they go to compare auto insurance quotes online or over the phone.

Federal Emergency Management Agency (FEMA) aid to Connecticut has included $4.8 million to help homeowners and renters. Another $281,000 in Federal Other Needs Assistance is helping cover the costs of disaster-related medical bills, vehicle repair bills and other expenses.

Source: http://www.governor.ct.gov/malloy/cwp/view.asp?Q=487776&A=4010

According to the Insurance Information Institute (III), auto, home and business insurers paid out nearly $25 billion in catastrophe claims through the first nine months of 2011.

Catastrophic weather events including tornadoes and floods in just the first half of the year—before Irene and other disasters—caused an estimated $27 billion in damages nationwide, III has stated.

OAI believes those figures should remind consumers who are looking to renew or buy new auto policies that only certain types of coverage will insure them against damages due to storms and other severe weather.

While most homeowner policies protect against fire losses and federal programs exist to cover residences against flooding, only comprehensive coverage will protect vehicle owners financially against weather-related damage to their cars.

Comprehensive coverage is not legally required in any state and will cost a little extra, but it is the only way to adequately insure vehicles against flooding, fire, or other weather damage.

To read more about this and other car insurance issues, go to http://www.onlineautoinsurance.com/quotes/ where you will find informative resource pages and a free-to-use quote-comparison generator that consumers can use to get sample premiums for many vehicle makes and models.

SOURCE Online Auto Insurance, LLC