Poor road conditions have cost consumers and the insurance industry at least $27 billion over a five year period, according to a 2014 survey commissioned by Trusted Choice and the Independent Insurance Agents & Brokers of America (“IIABA”). The survey also revealed that from 2009 to 2014, half of car owners experienced damage to their vehicles as a result of potholes.
“The snow, ice, and freezing rain during the rough winter months left their mark on the country's roads,” said Robert Rusbuldt, Trusted Choice president and IIABA president and chief executive officer. “Severe potholes have led to accidents which may impact insurance rates, as premiums are determined by past claims, accidents, and driving violations. Potholes and poor road conditions aren't just an inconvenience, they are an expensive and dangerous result of harsh winters.”
The pothole survey also found that 31 percent of car owners who reported pothole damage to their vehicles filed a claim with their insurance company. A surprising 65 percent of respondents who needed repairs said they (or a third party) paid out of pocket for the vehicle to be fixed. Only about three percent said local authorities stepped in to foot the bill. For about 40 percent of respondents, that bill was more than $500.
“This survey highlights how widespread the pothole problem is on our roadways and that the costs are enormous to both the insurance industry and to consumers,” said Madelyn Flannagan, IIABA vice president of agent development, research, and education. “And now, local authorities are struggling to keep up with the extensive road repairs.”
While motorists in the Midwest, Northeast, and North Central regions of the country reported the most pothole damage, the numbers were not that different even in the Southern and Western regions, which typically experience milder winters.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].