If you’ve been caught in a hailstorm and your car came out of it worse for wear, you might be thinking about filing an insurance claim. In Canada, hail damage can be covered, but only if you have comprehensive coverage as part of your auto insurance policy.
Even if you do have the right coverage, deciding whether to file a claim isn’t always straightforward. Whether it’s worth it depends on a few key factors, such as the severity of the damage, the cost of repairs, your deductible, your financial situation, and how a claim might affect your premium.
Before calling your insurer, ask yourself the following questions to help weigh your options and make the most informed decision.
1. How bad is the damage?
You don’t necessarily need a professional to do an initial assessment of the damage. Just wait until the storm has passed and make sure your car is safe to drive before inspecting it.
Start by checking the most exposed areas: the roof, hood, trunk, and side panels. Look for small dents or dimples where hail may have struck. Pay attention to any spots where the paint is chipped, scratched, or missing, as these are often signs of underlying dents. It can also help to run your hand along the surface of your car, as some dents are shallow and might not be visible at first glance.
2. How much does it cost to fix the hail damage?
If the damage seems significant or impacts the driveability of the car, you’ll want to get your car professionally inspected so you can get a proper repair estimate.
But how much does it actually cost to fix hail damage on a car? While in-person estimates will always be the most accurate, here’s a general idea of what you can expect to pay:
- Minor hail damage only affecting a few panels: Between $500 and $2,000
- Light to medium hail damage on multiple surfaces: Between $2,000 and $5,000
- Heavy to severe hail damage: Between $8,000 and $10,000+
The final cost will depend on factors like the number of dents, the extent of paint damage, and the type of repair needed (ex. paintless dent repair or full bodywork).
3. Do you have comprehensive coverage?
Hail damage is typically only covered if you have comprehensive coverage as part of your auto insurance policy. This type of coverage protects your vehicle from unexpected, non-collision incidents that standard policies don’t cover. It includes weather damage (ex. hail, wind, etc.), falling objects (ex. tree branches, falling ice, etc.), fire, theft, and vandalism.
Keep in mind that comprehensive coverage is optional. It’s not included by default when you buy car insurance, and you can’t add it after the damage has already happened. If you don’t have it, you won’t be able to file a claim for hail damage and will need to cover the repair costs out of pocket.
Not sure if you’re covered? Check the documents your insurance provider sent when you bought your policy.
4. What is your deductible for hail damage?
Since hail damage falls under comprehensive coverage, look at your car insurance policy documents for the deductible amount.
The deductible for comprehensive coverage, which typically includes hail damage, is usually $500 or $1,000. However, the exact amount may vary depending on your insurance provider, your policy details, or whether you have a feature like a decreasing deductible.
Knowing your deductible is key, as it helps you figure out whether it’s worth filing a claim or paying for the repairs yourself.
5. How much can you claim for hail damage?
Before filing a claim, it’s important to understand how much your insurer is actually willing to pay. Check your comprehensive coverage limit in your policy, which is the maximum amount your insurance will cover. In most cases, payouts are based on your car’s actual cash value (ACV), which reflects its current market value after depreciation.
If the cost to repair the hail damage exceeds the ACV, your insurer might declare your car a total loss and offer a payout instead of covering repairs. However, if you have a limited waiver of depreciation, your payout could be based on the original purchase price rather than the depreciated value. This can mean more money back in the event of a total loss, especially if your vehicle is less than two to four years old.
6. Does your insurance cover hail damage?
Once you’ve reviewed your policy and coverage details, consider contacting your insurance provider directly. They can help confirm whether you’re covered, explain the next steps, and give you a list of any documents or photos you’ll need to start the claim.
If you purchased your policy through a licensed insurance broker like YouSet, you may also be able to get additional support or guidance from them. Brokers can help clarify your coverage, walk you through the claims process, and even advocate on your behalf if needed.
How to decide if it’s worth making a car insurance claim for hail damage
So, should you claim hail damage on your car or pay out of pocket? Here are a few key things to consider:
- Repair cost vs. deductible: If the cost of repairs is less than or close to the deductible, filing a claim may not be worth it.
- Severity of the damage: Cosmetic damage (like minor dents) might not be worth filing a claim for, but if the hail impacted your safety or the car’s functionality, a claim may be worthwhile.
- Leased vs. owned vehicle: Leased cars often require all damage to be repaired, while you may have more flexibility if you own the car outright.
- Planning to sell or trade in? Unrepaired damage of any kind can lower your car’s resale or trade-in value. So, if you’re planning to sell or trade your car in in the near future, that might impact your decision to file a claim or not.
Taking all of these factors into account will help you make the most informed and financially smart decision.
