Hurricane Harvey was without a doubt one of the worst hurricanes in the United States since it also was responsible for destroying thousands of vehicles.
Now that we’re a few weeks removed from the historic hurricane many people in the Houston Texas area that were affected by Harvey have been contacting their insurers if they had one or more vehicles that were flooded or damaged.
Sadly, with thousands of people in the Houston area filing claims, this could ultimately increase insurance costs for other people across Texas as well.
Hurricane Harvey Cost
Auto insurance companies have restricted options for Houston-area drivers looking to purchase new policies and replace cars flooded by Hurricane Harvey, and comprehensive rates are expected to rise after the loss of an estimated half-million vehicles.
Some carriers have imposed temporary limits on selling insurance to customers in Harvey’s path, hesitant to assume new risk even as floodwaters recede. Experts expect longer-term changes as carriers reassess their rates after a spate of intense storms across the state.
“Look at our most recent history,” said Mark Hanna, spokesman for the Insurance Council of Texas. “This the third flood you’ve had affecting tens of thousands of vehicles, and that’s had a huge impact on comprehensive coverage.”
All major carriers ceased extending new coverage immediately before and after the storm, a standard practice within the industry. But some remain reluctant to onboard customers a week and a half after the rainfall at last stopped, citing concerns about continued flooding.
Allstate has maintained a moratorium on new coverage throughout most of Harris County and other storm-affected areas as it processes thousands of claims. Spokesman Roberto DeLeon said the company has lifted such restrictions in some places but hasn’t yet determined when it will resume normal business throughout the region.
“We are monitoring the situation day by day,” he said. “We take it down to the ZIP code level.”
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