After a hailstorm, you file an insurance claim and get an insurance check to cover the repairs. The idea of pocketing that cash can be tempting, especially if the damage seems minor. While it’s not illegal to keep the money, it’s a decision that can have serious consequences.
Here’s a breakdown of the risks and what you should really do with that insurance payout, plus answers to your most pressing hail damage questions.
First, is this Fraud?
This is typically not considered fraud if you own the car outright and your insurance company issues the payment directly to you. In the eyes of the law, the money is yours to spend. However, your insurance provider is giving you those funds for a specific purpose: to restore your vehicle to its pre-storm condition. Choosing to spend it elsewhere goes against the spirit of your policy agreement and can lead to significant complications down the road.
Is it Worth Filing a Claim for Hail Damage?
Absolutely, and here’s why. Hail damage is more than just cosmetic. Unrepaired dents can cause your car’s paint to crack, exposing the bare metal underneath to the elements. This process quickly leads to rust, which is far more expensive to fix than the original hail damage. Furthermore, that unrepaired damage will drastically reduce your car’s resale value. By filing a claim, you’re protecting your financial investment in your vehicle. With comprehensive coverage, you pay a low cost.
Does Insurance Go Up for Hail Damage?
Drivers worry most about this, but the good news is insurers generally classify hail damage claims as “no-fault” or “act of God” events. In the vast majority of cases, filing a single comprehensive claim for hail damage will not cause your insurance premiums to increase. This is different from an at-fault accident claim. It’s always a good idea to confirm with your specific provider, but you can usually proceed with confidence.
What Happens if I Keep the Money?
If you decide to keep the insurance money without repairing the damage, you’re creating future risk for both your car and your wallet. The most immediate problem is that your insurance company will now have a record of the pre-existing damage. If another hailstorm hits you or you have a separate accident, the insurer could deny or reduce your claim because they can’t differentiate the new damage from the old.
Furthermore, as mentioned, minor dents can evolve into major rust problems. If rust forms from unrepaired hail damage, your insurance will likely not cover the costly repairs, leaving you with a significantly larger bill later. At Dent Mechanic Group, we strongly recommend repairing hail damage promptly to protect your vehicle’s value and your financial well-being.
Does Hail Damage Affect Car Value?
Yes, significantly. A car with unrepaired hail damage can see its resale or trade-in value plummet by thousands of dollars. Dealerships and private buyers will see the damage and drastically lower their offers. Even if you get the car repaired, the method matters. Traditional body shop work, which involves repainting, can still reduce the value, as it indicates major past damage. The best way to preserve your car’s value is with Paintless Dent Repair (PDR). Expert PDR, the service we provide at Dent Mechanic Group, preserves your factory paint, leaving no trace of the damage and ensuring your car retains its maximum possible value.
Is Minor Hail Damage Worth Fixing?
Yes, even minor hail damage is worth fixing. What seems like a small, insignificant dent today can be the starting point for paint cracking and rust tomorrow. Additionally, when you have multiple “minor” dents across your car, the cumulative effect on its appearance and value is significant. Thanks to Paintless Dent Repair, fixing minor hail damage is fast, affordable, and incredibly effective. It prevents future problems and keeps your car looking its best.
How Much is the Average Hail Damage Claim?
The cost of hail damage repair is highly variable, but the average claim often falls between $2,500 and $10,000, depending on the severity of the storm. A vehicle covered in dozens of dents will be on the higher end, while a car with only a handful might be less. The most important thing to know is the cost. For our customers at Dent Mechanic Group with comprehensive insurance, we work directly with your provider to handle the claim. In most cases, you pay $0 out-of-pocket for a complete, high-quality repair.
What Should I Do with the Money?
If your insurance company entrusts you with the claim check, the right thing to do is to invest it in restoring your vehicle. We recommend using those funds with a reputable auto hail repair shop that specializes in Paintless Dent Repair. PDR is the gold standard for hail damage because it preserves your car’s factory finish and its value.
Dent Mechanic Group employs highly-skilled PDR technicians who use state-of-the-art tools to gently massage dents out, restoring your car’s body lines to perfection without the need for fillers or repainting.
How Dent Mechanic Group Can Help
At Dent Mechanic Group, our priority is taking care of you and your vehicle with a hassle-free experience. Our team of certified PDR experts will repair your hail damage quickly and efficiently, often at no out-of-pocket cost to you. We handle all the paperwork and communication with your insurance company on your behalf.
We make the process as convenient as possible with free pickup and delivery throughout the DFW area. And if you need a vehicle while we restore yours, we provide a free rental car.
With thousands of cars repaired over many years and over a thousand 5-star Google reviews, we’ve built our reputation on quality, trust, and reliability. We’re here for you year-round, ready to get you back in your perfectly restored car in no time.