With frost switching between thaw in Latvia, potholes on roads create problems for motorists every year. In January 2024 insurance company ERGO received at least 15 CASCO insurance claims for various damages suffered by cars when driving over potholes.
Considering the situation on the roads now, it is possible the number of insurance claims could surge dramatically in the near future, according to representatives of the insurance company.
The biggest insurance claim for running over a pothole received by ERGO in January so far is EUR 2 220. One such case took place on Ventspils motorway near Jūrmala. A car ran over a pothole, damaging the front car tyres and disks. “This is the kind of damage we see the most often when cars run over potholes. However, in the most severe cases other car parts get damaged: bumpers, suspension, and even the steering wheel mechanism. There are also cases when cars collide with other cars when attempting to drive around potholes.”
This month most compensation requests were received from Riga, Jūrmala and Cēsis. “This can be partially explained with the fact that in Riga there may be more vehicles with CASCO insurance. Road traffic intensity there is also significantly higher than in regions. This also affects the quality of roads. It is possible potholes have a higher chance of appearing on roads frequently used by heavy vehicles,” says ERGO Vehicle Insurance Product manager Aldis Eņģelis.
He reminds that Motor Third Party Liability Insurance (OCTA) does not provide compensation for vehicle damages that come from driving over potholes. Such cases are compensated by CASCO.
Potholes in numbers – 2 023
Last year ERGO received a total of 153 CASCO compensation requests for damages caused by potholes (176 in 2022). Approximately two-thirds of last year’s reported accidents took place in Riga.
Last year the average ERGO CASCO compensation paid for damages caused by potholes went up by 22% when compared to 2022 – from EUR 689 to EUR 839.
The most expensive potholes
Last year’s biggest CASCO compensation was paid by ERGO for damages caused by pothole to a motorcycle – EUR 10 120. EUR 9 745 was paid for damages caused to a car that ran over a pothole in a gravel road.
What residents should to at an accident site?
Eņģelis explains that damages caused to vehicles by potholes are automatically included in all standard CASCO insurance policy variants.
“CASCO requirements require residents to report accidents that result in their vehicle becoming inoperable to the police. It’s not necessary for the police to arrive at the scene, it is enough to inform the police and ensure the accident is registered. If police are not informed, insurance rules usually provide a CASCO compensation limit of EUR 1 000 to EUR 2 000, depending on the age of the vehicle. This means compensation will be paid, but it will not exceed this limit,” stresses Eņģelis.
If a vehicle remains operable after driving over a pothole, it is not necessary to contact the police. If the motorist can replace the damaged wheel on their own and preserve the damaged wheel, it is allowed. This makes it possible to present the damaged wheel at a car service station to receive CASCO compensation.
“A reserve wheel can be very useful in situations when driving on a road that has potholes. Motorists should always be careful when driving. If running over a pothole is unavoidable, motorists should reduce driving speed, but in a way that gives enough room and time for following vehicles to slow down as well. People should be especially cautious at night,” ERGO representative says.
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ERGO: number of insurance claims for damages caused by potholes could surge very rapidly
