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Jonesn4burgers's avatar

Does auto insurance cover sink holes?

Asked by Jonesn4burgers (6367 points ) March 6th, 2014

This week I watched Corvettes being pulled from a sink hole which sucked them down last month. Some will never be recovered. Does insurance cover such things, or are the owners of those showcars completely out of luck?

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7 Answers

JLeslie's avatar

If the auto insurance doesn’t the insurance on the building and it’s contents probably will if they have sink hole insurance. Usually you have to specifically put that on the insurance policy like earthquake coverage.

CWOTUS's avatar

In the US, most auto insurance is sold in three “flavors”:

Liability is often the “must-have” insurance for many states. Liability coverage is generally paid to people who are injured by your operation of your vehicle, for example, pedestrians or drivers and passengers of other vehicles that are injured in an accident with your vehicle, sometimes regardless of “fault”.

Collision insurance pays for damage done to your car when it’s damaged or destroyed in an accident with another car or even if you run into something stationary. In other words, damaged caused by the collision of your car with something else during operation.

Comprehensive is a broad type of insurance that covers damage to the car through acts of God, loss of contents of the vehicle, damage from vandalism, etc. If you have comprehensive coverage, then I would expect that you’d be covered if you somehow lost the car in a sinkhole.

Owners of late-model and / or expensive cars are more likely to have collision and comprehensive coverage.

Adirondackwannabe's avatar

I’m guessing your insurance isn’t going to cover the car, because it was damaged while in the care and possession of someone else. Something similar to garage owners coverage might cover it. That covers vehicles owned by others while it is in your care and possession.

CWOTUS's avatar

I just noticed the word “showcars” in the question.

Something such as this that has a value which may be considerably higher than “normal” cars sold from stock would probably have a specific policy written to cover nearly anything under the sun – provided the owner also maintains a certain level of care, too. (Even “stock” cars that have been highly customized by their owners, but which are generally used on the road, are covered by “regular” auto policies, though they may be fairly expensive, depending on the degree of customization.) Such a policy (for a showcar not used in normal traffic) would probably cover everything except driving it on the road, at which time its “regular” auto policy would be in effect, assuming that it is properly registered, roadworthy and legal for normal roadway operation.

Jonesn4burgers's avatar

Wow. It sounds pretty comlicated. I don’t know what sort of show they were there for. I just saw mangled bits of (apparently) useless metal being crane lifted from a huge hole in the ground, and the reporter was saying they had been there for a show when the sink hole happened. Then they said some of the cars were just plain gone, and would never be recovered. My first thought was, “Wow, what an investment loss?” It then hit me that they must have been insured, but a hole?! Who would think of that? It bugged me for a couple of days. I finally decided to have my jelly friends set me straight.
Thanks for guiding me through. I know this, if I ever own anything of great value, I will certainly do some checking first on the best ways to protect my investment!

JLeslie's avatar

It’s not a show. It was the Corvette museum in KY. I have walked on that very floor. I’m sure museums must have very comprehensive insurance. It was in the national news.

Jonesn4burgers's avatar

OMG, what a loss! I thought sure they’d said it was on some lot in California. Of course, it was at a time when I had the news on for background, not when I was seated to just absorb what was being said.
What is the deal with sink holes? It seems like they are getting very common these days.

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