Does Car Insurance Cover Hail Damage?

If you’ve ever stepped outside after a hailstorm and noticed dents peppering your car or a shattered windshield, you’re not alone. Hail events have increased by 57% from 2022 to 2023, according to NOAA’s National Weather Service Storm Prediction Center, and experts believe it will only become more common as the climate continues to warm. Damage from hail can happen in a matter of minutes and leave you with costly vehicle repairs.

State Farm reported a total of $3.5B paid in hail claims last year. With the documented frequency and severity of these losses, you may be wondering if your car insurance covers hail damage, and if so, how these claims could impact your premium. Having spent decades in the insurance industry, I can break it all down for you.

Comprehensive car insurance is designed to protect your vehicle from a range of non-collision-related damage, including hail, fire, flood, vandalism, and theft. If you only carry liability insurance, your policy won’t cover hail damage. Liability insurance strictly covers damage you cause to other people or their property.

Will A Hail Damage Claim Increase My Premium?

Filing a claim for hail damage generally won’t increase your premium. However, this is largely dependent on a few different factors.

• Your Insurance Carrier- Some insurers view natural disaster claims, like hail, differently than accident-related claims, and do not raise rates.
• The State You Live In- Insurance companies are regulated by the state in which they do business. Some states may not allow insurers to increase rates for comprehensive claims, or claims under a certain threshold.
• Claim History- Filing multiple comprehensive claims can flag you as a higher risk, potentially leading to rate increases.

Comprehensive claims increase your insurance premium by $98 annually, on average. It’s also important to note that most insurance companies look at the past three to five years of loss history to base your rates. So filing a claim for hail damage has the potential to affect your premiums for at least this long.

Will I Need To Pay A Deductible For A Hail Damage Claim?

Yes, you must pay a comprehensive deductible when filing a claim for hail damage. You choose the deductible amount when you first purchase your policy or add your car to your existing policy. The average comprehensive deductible is $500, but companies often offer $1,000, $2,500 or even higher.

The higher deductible you choose, the lower your insurance price will be. Many consumers believe it’s best to choose a higher deductible to save money. According to one website, increasing your deductibles from $500 to $1,000 can save you about 8.5%.

Is Filing A Claim For Hail Damage Worth It?

Whether filing a claim for hail damage is worth doing will largely depend on the extent of the damage and your deductible amount. The average repair costs for hail damage can range between $500-$3,000.

Before you file a claim, consider the repair cost and your deductible. It may be worth filing if your repair costs significantly exceed your deductible or you cannot afford them out of pocket. Conversely, you may want to skip the claim if the damage is minor or if you have filed a few claims previously.

It’s also important to note that hail damage, whether repaired or not, affects the value of your vehicle. Carfax reports that prior damage to a car affects the retail price by an average of $500, whereas severe damage can affect it by up to $1,700. The best way to avoid depreciated value from hail damage is to prevent it in the first place.

How To Protect Your Car From Hail Damage?

Preventing hail damage is often easier and less expensive than repairing it. Here are some practical tips on how to protect your car from hail damage. First, park in a covered area if possible, such as a garage or carport.

If you do not have access to a covered area, staying updated on severe weather forecasts is helpful so you can prepare. Investing in a hail-resistant car cover can also reduce the impact of hail damage, as well as folding in your side mirrors. Lastly, ensure you have the proper insurance coverage in the event a hail storm does damage your vehicle.

Can My Vehicle Be Totaled By Hail Damage?

Hail damage has the potential to total your car if the cost of repairs exceeds the vehicle’s actual cash value (ACV). Some states also have certain rules regarding when a vehicle should be totaled. For example, if a car’s cost to repair exceeds a certain percentage of its worth, it will be totaled.

If your insurer declares your car a total loss, they will compensate you for its actual cash value minus any applicable deductible. However, this amount may not fully cover the cost of replacing your car, especially if you owe more on your loan than the car is worth. GAP (Guaranteed Asset Protection) insurance can cover the difference between your car’s ACV and the amount you owe on your loan.