Poor Road Conditions Cause $27B in Damage

Poor Road Conditions Cause $27B in Damage

Poor road conditions have cost consumers and the insurance industry at least $27 billion over the last five years.

The survey, which was commissioned by Trusted Choice and the Independent Insurance Agents & Brokers of America, also found that half of its respondents reported pothole damage to their vehicles. Of those surveyed, 31 percent who reported pothole damage filed a claim with their insurance company. An overwhelming 65 percent of respondents who needed repairs said that they, or a third party, paid out of pocket for the vehicle to be fixed. Only three percent noted that local authorities covered the damage.

SEE ALSO: Gas Tax Increase Proposed by US Senators

“Potholes and poor road conditions aren’t just an inconvenience, they are an expensive and dangerous result of harsh winters like we recently experienced in many parts of the country,” Independent Insurance Agents & Brokers of America  CEO Robert Rusbuldt said. “This survey highlights how widespread the pothole problem is on our roadways and that the costs are astronomical to both the insurance industry and to consumers.”

The most pothole damage was reported in the Midwest, Northeast and North Central regions of the U.S., although the numbers weren’t much different in the Southern and Western regions.