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The High Cost of Hail Damage to Vehicles

Posted on behalf of Stephens, Anderson & Cummings on Jun 14, 2016 in Insurance Lawyers

hail damage to vehicleVehicle hail damage has resulted in hefty payouts. From 2008 to 2014, insurers paid an estimated $7.26 billion in vehicle hail damage claims across the United States.

An analysis of U.S. hail claims by the Highway Loss Data Institute (HLDI) during that timeframe identified the costliest years in terms of hail damage payouts, as well as the area where most claims occurred. 2011 and 2014 had the largest payouts: $948.3 million and $968.9 million respectively.

The study also found that the midsection of the country had the highest concentration of hail damage claims.

In their analysis, the HLDI examined weather-related loss claims from 31 insurance companies, which represents 87 percent of HLDI’s database of comprehensive coverage exposure.

During the analysis period, there was a frequency of 3.2 claims per thousand insured vehicle years. Overall losses averaged $11 per insured vehicle year, with a $3,428 claim severity.

During 2011, claim frequency was at its highest point, with 4.3 claims per thousand insured vehicle years. The highest claim severity took place in 2014, at $4,169 with an average loss of $15 per insured vehicle year.

The HLDI found that South Dakota, Nebraska, Oklahoma, and Kansas had the highest frequency of vehicle hail damage claims during the analyzed period. Wyoming, Montana, Colorado, Missouri, Iowa, and Texas also ranked in the Top 10 for highest claim frequency.

The HLDI says that 2016 may end up being an even worse year for vehicle hail damage claims. Areas in Texas have already been hit hard by hail this year, with vehicle damage totals estimated to be over $1 billion for three severe spring storms.

If you are having trouble recovering compensation for hail damage to your vehicle, the insurance lawyers at Stephens, Anderson & Cummings will pursue your damage claim and work to secure the compensation you deserve.

Call (877) 920-9009 or fill out our Free Case Evaluation form today.