Hailstorms can be incredibly damaging to vehicles, leaving dents, cracks, and shattered windshields in their wake. If your car has been caught in a hailstorm, one of your first thoughts is likely, “Will my insurance cover hail damage car repairs?” Understanding your car insurance coverage for hail damage is crucial for navigating the claims process and getting your vehicle back to its pre-storm condition. This article provides a comprehensive guide to help you understand hail damage car insurance coverage and what to expect when filing a claim.
Understanding Comprehensive Coverage and Hail Damage
Generally, hail damage is covered under the comprehensive coverage portion of your car insurance policy. Comprehensive coverage is designed to protect your vehicle from damages that are not caused by collisions, such as theft, vandalism, fire, and natural disasters – including hail.
It’s important to understand that comprehensive coverage is usually an optional part of your car insurance policy. If you only have liability coverage, which is often the minimum required by law, you will likely not be covered for hail damage. Liability coverage only pays for damages you cause to others, not to your own vehicle.
Key takeaway: To have your hail damage car repairs covered by insurance, you typically need to have comprehensive coverage.
Filing a Hail Damage Car Insurance Claim: What to Expect
If your car has sustained hail damage, here’s a step-by-step guide on what to do and what to expect when filing an insurance claim:
1. Assess the Damage and Document Everything
Before contacting your insurance company, carefully assess the damage to your vehicle. Take clear photos and videos of all hail damage, including dents, cracked windshields, and any other affected areas. This documentation will be crucial when you file your claim.
2. Contact Your Insurance Company Immediately
Once you have documented the damage, contact your insurance company as soon as possible to report the hail damage. They will guide you through the claims process and may ask for your documentation. Be ready to provide your policy number and details about the incident.
3. Understand Your Deductible
Most comprehensive coverage policies come with a deductible. This is the amount you will have to pay out-of-pocket before your insurance coverage kicks in. For hail damage, your comprehensive deductible will apply. Make sure you understand your deductible amount, as this will affect your claim payout.
4. Vehicle Inspection and Damage Assessment
Your insurance company will likely want to inspect the damage to your vehicle. They may send an adjuster to your location, or they may ask you to take your car to a specific repair shop or claims center. The adjuster will assess the extent of the hail damage and estimate the cost of repairs.
5. Receiving Your Claim Payment
Once the adjuster has assessed the damage and your claim is approved, the insurance company will issue a claim payment. This payment is intended to cover the cost of repairing your vehicle, minus your deductible.
Important points regarding claim payment:
- Salvage Title Concerns: Some companies might inquire about a salvage title before releasing payment. However, it’s important to note that, legally, a vehicle damaged by hail is often specifically exempted from being classified as a salvage vehicle solely due to hail damage.
- Payment and Loan Amounts: The insurance company will pay based on the actual cash value (ACV) of your vehicle at the time of the hail damage. If your loan amount is higher than the ACV, you are responsible for the difference, unless you have GAP insurance (Guaranteed Asset Protection), which is designed to cover this gap.
- Sales Tax on Totaled Vehicles: If your vehicle is declared a total loss due to hail damage and the insurance company takes ownership of it, they are essentially buying your car and should pay the sales tax. If you retain the totaled vehicle, sales tax is not applicable.
What Happens If Hail Damage Occurs Again Before Repairs?
It’s possible for another hailstorm to strike before your car is repaired from the initial damage. In such cases, the insurance company will assess the new damage. They will issue payment for the new damages, but this will be less the initial hail storm payment and deductible from the first claim. The comprehensive deductible will typically apply to each hail loss event.
Total Loss and Hail Damage
An insurance company may declare your car a total loss if the cost to repair the hail damage exceeds a certain percentage of your vehicle’s value. This percentage is determined by each insurance company’s internal policies and is not dictated by a specific state law or threshold.
Understanding Total Loss:
- Company’s Discretion: The decision to declare a vehicle a total loss is a business decision made by the insurance company based on their claim handling procedures and valuation methodology.
- Vehicle Value Determination: The value of your car is determined by its actual cash value (ACV) at the time of the hail loss.
Keeping a Totaled Vehicle
In some cases, your insurance company might allow you to keep your totaled car. However, if you do so, they will likely reduce the claim payout by the vehicle’s salvage value. Furthermore, you might face limitations on future coverage. Insurance companies are generally not required to offer comprehensive or collision coverage on a vehicle they have previously totaled, even if it is repaired.
Company’s Right to Take Possession: If your vehicle is declared a total loss, your insurance company may require you to turn the vehicle over to them as part of their claim procedures.
Conclusion: Be Prepared for Hail Season
Hail damage to your car can be a frustrating experience. Knowing that comprehensive coverage typically covers hail damage and understanding the claims process can help ease the stress. Remember to review your car insurance policy, understand your coverage limits and deductibles, and be prepared should your vehicle be caught in a hailstorm. If you have any doubts about your coverage, always contact your insurance provider to discuss your specific situation and policy details.
