Hail damage can wreak havoc on cars, causing conditions ranging from minor dents to shattered windows. Car insurance will step into the alleviating role for you in terms of hail damage, but what happens after you file a claim? Will your rates go up? This post will highlight how claims work with hail damage, if rates might increase, and cost-effective options when dealing with hail damage.
Hail Damage and Comprehensive Coverage
Hail damage is considered comprehensive coverage, which is a type of car insurance that offers protection for incidents not involving collision, such as hail, theft, and vandalism. Comprehensive coverage is optional but recommended if you reside in a location frequently affected by severe weather.
When you file a claim related to hail damage, the insurance company will send out an adjuster to evaluate the damage and determine a reasonable repair cost. Comprehensive coverage typically has a deductible, which is the payment amount you agreed to pay before insurance coverage would start. Should the cost of repair be below or close to the deductible, you may not want to go through the claim process.
Factors That May Affect Rate Changes
While you may have comprehensive coverage to protect yourself from things like hail damage, your insurance company is considering several factors in its assessment of whether your claim may have any effect on your rates. Here’s what you should know:
No-Fault Weather Events
Hailstorms are considered to be no-fault weather events. No one has control over the weather. In most cases, insurance carriers won’t raise your premium for a single hail damage claim. It really depends on your carrier and your state regulations, so definitely read your policy or ask your insurance provider about it, because you must understand your specific situation.
Frequency of Claims
Your claims history matters. If you have filed multiple claims, even “no-fault” claims, you run the risk of being perceived as a higher risk to your insurance company. In cases where you have had a long history of claims, you are probably considered for a potential premium increase. You seriously want to give consideration and thought to reporting each trivial incident to your insurance.
Regional Risk Factors
If you live in a region devastated by hailstorms, such as the Midwest or Great Plains, you may have increased insurance rates just due to the higher likelihood of severe weather events. When calculating premiums, insurers consider the risks that come with your location, which may make it difficult to find cheaper car insurance, even if you haven’t ever filed a claim for hail damage.
The Cost of Repairs
If the repairs are relatively minor and are less than or close to your deductible, it may be more viable to pay out of pocket instead of risking a rise in rates. If the damage is significant and the repair costs significantly exceed your deductible, filing a claim may be appropriate. It is all a matter of weighing the cost against any potential long-term effects on your premiums.
Tips for Dealing with Hail Damage without Raising Rates
Dealing with Hail Damage can be concerning, but there is a way to look at this without automatically increasing your insurance rates. Here are some general tips for managing this situation and protecting both your car and your premiums:
Weigh the Cost of Repairs against Your Deductible
Before you take the plunge and file an auto insurance claim, take a moment to evaluate what your deductible is compared to the estimated repairs. Let’s say your deductible is $500 and the repairs come in at $600; if you file a claim, you would only net $100 and then face a potential premium hike down the road. In this situation, it might be best to pay for the repair out of pocket.
Protect Your Vehicle in Advance
The best way to harden your vehicle against hail damage is to take action upfront.
Keep it in a garage or under a carport as often as you can, especially if living in a hail-prone state.
Invest in a hail-resistant car cover; these covers are made to absorb hailstone impacts and mitigate damage.
If there is a storm related to hail in the weather forecast, consider other parking options.
While this takes a little of your time, it is easier and less expensive than paying to repair hail damage.
Think About Minor Repairs Without Insurance
If the damage is only cosmetic and doesn’t impact the operation of your vehicle, you may choose to leave the damage in its current state, or you can go with low-cost repair options for repairs done out of your pocket. Many auto repair shops offer paintless dent repair, or PDR, service; these types of repairs are usually faster and less costly than traditional methods.
Search for Repair Specials
Various repair shops will have arrangements with insurance carriers to develop pricing for repairs at discounted rates, but you might find some independent form shops that are even more reasonable. It’s important to get more than one quote in order to get the best price and not involve your insurance.
Use Emergency Funds or Payment Plans
If the cost for repairs is high, but you don’t want to file an insurance claim, then using your emergency savings might be the best option. No savings?
Several repair shops provide useful payment plans or financing options, enabling you to break the total cost into smaller payments. Hence, it becomes easier for you to afford. This way, you can complete the repairs and not involve your insurance, and hopefully not worry about your premiums increasing.
Conclusion
So, do the claims for hail damage increase the rates of car insurance? It might, but it depends on various factors, including the number of claims made in the past, the insurance company you’re working with, and your location. Generally, because hail damage is covered by comprehensive insurance, it would be less likely to cause your rates to increase than an at-fault accident.
However, if you have already filed a number of claims in the past or if you are living in a region that often experiences storms, the situation may still have an effect on your insurance rates. Always, the cost of repairs should be compared with your deductible, and the insurer should be consulted to know the impact of filing a claim on the rates.
Also Read: Georgia Drivers Are Paying Too Much for Car Insurance
