When a hail damage auto insurance claim is worth it

A dent repair can cost upwards of $100



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Cars tend to bear the brunt when hailstorms hit, as was the case when golf-ball sized hail assaulted central Alberta earlier this week causing plenty of property damage. Superficial dings are common, and if you’re really unlucky, a cracked windshield.

The question is, are you insured? Unless you have “comprehensive” insurance, it’s likely you’re not, says insurance expert Anne Marie Thomas of InsuranceHotline.com. In Alberta especially, many policyholders don’t have hail coverage and glass coverage because it’s so expensive.

“It’s surprising how much damage hail can do. What looks like a few pockmarks can end up being quite costly,” she says. Repairing a dent could cost upwards of $100 and if you have several, that can add up.

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If you do have coverage, whether you should file a claim depends on a few things. You should take into consideration how much the cost of repair for hail damage is, how much your deductible is and how much your car is worth. If it’s going to cost $2,000 for a paint job and dent repair and you have a $1,000 deductible, your company will only cover the remaining $1,000, says Thomas. “If your car is older and worth $2,500, it may not be worth it,” she adds.

If you own your car and have no plans to sell it in the future, forgoing the cosmetic repair and keeping the cash settlement may be worth your while. However, if you do plan to sell or trade your vehicle, small, cosmetic damage could affect the car’s resale value. “You don’t want to leave money on the table. If it costs a $1,000 to get the damage repaired, but it’s going to take $1,500 off the resale, then it’s worth it,” says Thomas. If your car’s a hunk of junk, you might be better off using the cash for something else. Start a new car fund, maybe?

The MoneySense Guide to Insurance »

If it’s your first time filing a comprehensive claim for hail damage, depending on your insurance company, it may not necessarily influence future premiums. But depending on the number of previous claims you’ve filed, you may face consequences. Some insurance companies could decide not to provide coverage at all or they may increase your deductible. If you’ve already filed three other hailstorm damage claims in two years, for example, it may not be worth it.

3 comments on “When a hail damage auto insurance claim is worth it

  1. I really like how you said, “Unless you have “comprehensive” insurance, it’s likely you’re not.” Most people don’t realize how important is to know what exactly your insurance covers. For the most part people always cover the minimal insurance in order to save the most. I love to save, but last week I had a big hail storm that did a lot of damage to my new car. Thanks for posting this article and I hope that other people don’t make the mistake I did.


  2. I’m not sure if my insurance covers hail damage, is it a common thing? I’ll need to look into this before having any damage repair service since the repairs can be very costly, from what I’ve read here. Thanks for the info on insurance and hail damage.


  3. Hail damage is considered an act of god and will not go against your insurance in any way. There is however a posability that it will cause the entire area’s premiums to go up in the event there is multiple hail storms back to back.
    If you would like to learn more about hail damage and insurance claims you can visit us at http://www.dentpass.com


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