
Damage to cars due to potholes is covered under the optional collision portion of an auto insurance policy. Coverage for potholes may vary from company to company—for instance, there may be limited coverage for damage to tires if the car itself was not affected by the pothole.
This coverage also pays for a collision with another car, object or as a result of flipping over. Collision coverage is generally sold with a deductible of $250 to $1,000—the higher the deductible, the lower the premium.
If you need more information or have any questions about whether or when you are covered, always ask your insurance agent. This information comes from the Insurance Information Institute, iii.org