Dealing with Cars and Hail

Scene 1

It was only pea-sized hail. Maybe even smaller. No big deal.

Sure, it sounded like meteor fragments were pelting down from out of space, but nothing got broken, so it’s probably fine.

The car looks good – can’t even see any damage. No need to call the insurance company.

That may be a mistake.

When your car is outside in a hailstorm, even if you can’t see damage, a trained eye may still find it. Even damage that you can barely see could need repair that may be costly.

And, left unrepaired, hail damage could de-value your car. Take it to trade it in on a new car, and the dealer will likely discount its value because THEY will have to pay to have the hail damage repaired before they can resell it.

Scene 2

There will probably be a couple more hail storms this spring – I’ll wait to make a claim until the season is over.

Most policies require each instance of damage to be treated as a separate claim.  Your failure to accurately file claims in a timely manner could impact the damage valuation of the vehicle and potentially cause unneeded challenges while working with your carrier to resolve the loss. 

Imagine this rare scenario: A customer had $11,000 of hail damage to a $30,000 car, but they decided to wait a few weeks before making the claim. The customer got rear-ended, and the car was then totaled. Because it had $11,000 of damage, the insurance ultimately paid out only $19,000 ($30,000 value minus the pre-existing damage). The customer owed $28,000 on their car loan. 

That’s a simplistic example. The reality is that such situations can become even more complex. The bottom line? No one comes away happy. Waiting until the season is over can turn into a painful, regrettable decision.

Scene 3

If I make a claim for hail damage, my rates will go up – or I might get cancelled.

Federated will not increase your rate based solely on a hail damage claim.

With Federated, hail damage is considered an “act of God” or “weather-related loss” and not your fault. You do not receive a rate increase because you got your hail dents and dimples repaired.

Hail damage, storm damage, other weather-related losses fall under the comprehensive portion of your insurance policy.

The Short Answer

If you have comprehensive insurance coverage as a part of your auto policy, you likely have coverage for hail damage, and, with Federated, you do not receive a rate increase or a cancellation because you file a claim.

You will have to pay your deductible, however.

Keep in mind that if you choose not to repair hail damage – to live with the dimples and dings – your car has “pre-existing damage” and any OTHER claim you make could be reduced by the cost to repair the hail damage.

Also remember that your car’s trade-in value will likely be decreased by what it would cost your car dealer to repair hail damage so they can resell your pre-owned vehicle.

If you have a loan on your car, you may be required to fix the damage. Good news is that, with a loan, you also are typically required to carry comprehensive coverage, so you may only be on the hook for your deductible.

If It Happens To You

If your car gets pelted by a hail storm, your first step is to document the damage. Take pictures. You may want to take pictures in a variety of light – bright sunlight, angled light, etc., so that all of the damage can be plainly seen in the photos.

Get an estimate of the repair cost from a trusted local body shop. Don’t sign any contracts at this point. Just get an estimate. 

If the estimate is less than your deductible, you may consider having the repairs done and pay out of pocket. If the estimate is MORE than your deductible, promptly filing a comprehensive claim will help ensure any applicable coverage is applied to the damage. An adjuster will work with you and the body shop of your choice to assess the damage and determine if you have coverage for the repairs or if the car is totaled.

The Bottom Line

Here in Minnesota, we have some years when we are one of the top states for hailstorms and hail damage, and other years where we don’t seem to get much hail at all. Of course, it’s hard to predict. Our local meteorologists do their best to forewarn us when hail could occur, but they don’t always get it right.

To help reduce risk, put your car in a garage whenever possible. If you can’t, or if you don’t have a garage, and you do have weather-related damage occur, be sure to file claims promptly. If you don’t have comprehensive coverage as part of your policy, talk to your agent about whether it makes sense to add it back in.

Start a Quote Online or Contact Us. We look forward to hearing from you.

This article is for general information only and should not be considered an offer of insurance or legal or other expert advice.  The recommendations herein may help reduce, but are not guaranteed to eliminate, any or all risk of loss.  Claims illustrations herein are hypothetical and for discussion purposes only.  Coverage will be determined based on the facts of the claim and the terms of your policy, if approved for issue.  Policy limits, deductibles, conditions, and exclusions may apply.  Your eligibility and premium will depend on the application of Federated’s underwriting guidelines to your unique circumstances including, but not limited to, your personal information, loss history, location, and coverage.  The information herein is current as of September 2022 and is subject to change.  Coverage not available in all states.  Qualified counsel should be sought with questions specific to your circumstances.   Policies are underwritten by Federated Mutual Insurance which is licensed in Minnesota.