How Storm Damage Can Impact Your Car Insurance

An increase in storm-related damage claims could be a leading cause of rising insurance rates.

Elliot Rieth | 

Feb 5, 2024 | 3 min read

Updated on March 26, 2026

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Your comprehensive insurance could cover vehicle damage caused by hail and flooding. However, filing storm-related damage claims, as well as a national increase in storm frequency, may be the reason why you and others in your area could face higher deductibles.

• Comprehensive insurance may cover flood damage
• Comprehensive insurance may cover hail damage
• More storms could mean higher car insurance rates
• How this could impact your rate

Comprehensive Insurance May Cover Flood Damage

If your vehicle is damaged from flooding, comprehensive car insurance will likely kick in once you've hit your deductible. This is regardless of whether your vehicle was parked in or driven through floodwater.

If your engine, transmission, or other major components sustain water damage due to flooding, your insurance company might consider your vehicle a total loss. If the cost of these damages equals to more than the current value of your car, comprehensive coverage could reimburse you for the vehicle — up to its value at the time of your claim, after subtracting your insurance deductible.

Damage caused by negligence, however, will most likely not be covered. For example, if rain gets into your vehicle during a storm due to a preventable leak or because your windows were down, the damage might not be covered.

Comprehensive Insurance May Cover Hail Damage

Comprehensive insurance also typically covers hail damage. Hail storms can shatter windshields and create dents or even completely destroy the vehicle. Coverage provided by your comprehensive insurance will vary depending on your exact claim.

Much like with flood damage, if your vehicle's repairs are deemed severe enough, your car could be considered a total loss. In this case, your comprehensive insurance may reimburse you with the actual cash value of your car at the time of your claim, minus your deductible.

More Storms Could Mean Higher Car Insurance Rates

According to insurance industry experts, an increase in severe storms could be a leading cause of rising insurance rates. 

As the frequency of these high-cost storms increases, the number and severity of insurance claims over storm damage are likely to increase as well. Higher costs for insurance companies likely mean higher costs for policyholders. 

Storm damage costs add up. The National Centers for Environmental Information (NCEI) reported the U.S. sustained 403 weather and climate disasters from 1980 to 2024 where overall damages and costs reached or exceeded $1 billion (including CPI adjustment to 2024). The total cost of those 403 events exceeded $2.915 trillion. 

NCEI reported the U.S. experienced 27 confirmed weather/climate events in 2024 that exceeded $1 billion in damages and costs. The government agency also reported from 1980 to 2024, the average number of these kinds of events was 9 per year (CPI-adjusted). From 2020 to 2024, that average increased to 23 events per year (CPI-adjusted).

How This Could Impact Your Rate

Depending on your insurance company, even one claim from storm damage could lead to a higher insurance rate in the future.

Some insurance companies, however, won't raise your rate on your first claim. Instead, they'll keep track of your claims history and increase your rate if they see a pattern of storm-related damage over time. 

To reduce their financial risk, insurance companies can raise your rate even if you don't file a claim yourself. If storm damage strikes your area, others filing claims could lead your insurance company to adjust the area's rates to compensate for future storm-related claims.

Elliot Rieth

Born and raised in Michigan — the center of the American automotive industry — Elliot's fate of becoming a writer in the automotive space was seemingly predetermined. In addition to covering cars and personal finance for Capital One, he's worked directly with dealers and OEMs to create digital content meant to educate consumers. He's also passionate about music and has written for outlets like In Review Online. When he isn't writing about the latest financial, automotive, and insurance trends, he can be found enjoying a new book or record alongside his two greyhounds.