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Winter doesn’t just bring fluffy snow, it can create black ice that turns roads into rinks, and unleash hail that hammers your car. Since 2008, losses related to hailstorms have grown fivefold, now costing an estimated $10 billion annually. Climate change is linked to larger hailstones that cause more severe damage.
As blizzards, ice storms, and hailstorms grow fiercer and more frequent, auto insurers face a growing number of claims and skyrocketing repair and medical costs. This pushes premiums higher, especially in areas prone to bad weather. Get ahead of extreme weather and check your car insurance coverage before the first snowflake falls.
Learn more: How does car insurance work? The basics explained
How weather influences auto insurance rates
State legislatures regulate insurance rates to prevent excessive charges. The process requires insurance companies to share detailed risk assessments and justify their expected claims and policy-management costs. Weather factors into the risk analysis and projected claims cost, both overall and on an individual policy basis.
A rough weather season can cost an insurance company millions in claims across multiple insurance lines, including homeowners insurance, auto insurance, and business insurance.By the third quarter of 2025, insurer Allstate absorbed $4.6 billion of catastrophe losses. The bulk of the losses came from early 2025 California wildfires and March wind events.
Learn more: The insurance you need to protect your vehicle from flood damage
Types of weather-related auto damage
Auto claims related to weather can arise from direct damage and a higher incidence of accidents. Causes of direct damage include:
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Hail: According to Matt Brannon, data journalist for Insurify, hail-related damages made up 12% of auto claims in 2023, up 9% from 2020. Brannon noted that "hail-related claims are also about 26% more costly to repair than the average repairable claim."
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Storm surge flooding: High floodwaters can cause extensive damage to a vehicle's electrical system and interior. Mechanical functions can also break down when the water carries dirt and sand into the engine compartment and other systems. Repair costs often exceed the car's value, prompting the insurance company to declare the vehicle a total loss.
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High winds: High winds from tornadoes, hurricanes, and severe storms can cause downed trees and flying objects that land on vehicles. In extreme cases, wind can pick up vehicles and slam them into buildings or the ground.
Indirectly, traffic accidents and collisions are more common in poor weather conditions. Brannon reported that "wet pavement is a factor in 15% of crashes, with snow and sleet a factor in 4% of crashes."
Learn more: How much does car insurance increase after an accident?
Travis Hodges, managing director of VIU by HUB, a digital insurance platform, also noted the problem of severe storms in areas unaccustomed to them. Drivers in areas that are now seeing hailstorms in places they didn't previously may not be aware of the potential damage, and thus the extent of auto insurance needed.
Other factors increasing auto claim costs
Alongside increasingly severe weather events, other factors are pushing the cost of auto repairs higher. Insurance service provider CCC Intelligent Solutions highlights five significant trends affecting auto claim losses in its Crash Course Q1 2025 Report:
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Aging vehicles: Consumers are delaying new car purchases due to elevated costs and interest rates, plus supply constraints.
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More EVs and hybrids: EV and hybrids have more expensive parts and higher repair costs.
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Advanced safety features: Driver assistance features are complex and expensive to repair.
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Increasing medical costs: Bodily injury claim amounts are on the rise as U.S. health care costs escalate. The average bodily injury claim in 2023 was $26,501, up from $20,925 in 2020, according to the Insurance Information Institute.
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High total loss frequency: Depreciation of used cars and higher repair costs are increasing the frequency of total loss declarations.
In short, auto repair costs are rising as older vehicles age and new cars become more complex. Higher health care expenses are also increasing auto claim costs. These trends magnify the losses related to hailstorms, hurricanes, and tornadoes, and provide more data to support higher auto insurance premiums.
Learn more: Car insurance rates are climbing. Here are 4 reasons why and 11 ways to save.
Regions and states with the most damaging weather patterns
Brannon said drivers in areas prone to severe weather are likely to see the most significant rate increases. He cites Minnesota as an example, where insurance rates increased 58% in 2024. "The state experienced several waves of severe storms, producing heavy rainfall and record-breaking, 6-inch hailstones," Brannon explained.
According to the National Oceanic and Atmospheric Administration's National Centers for Environmental Information, the South, Central, and Southeast regions of the U.S. incurred the largest cumulative weather-related damage costs between 1980 and 2024. The three states with the highest weather-related damage costs are Florida, Texas, and Louisiana.
Learn more: Experts: Buy more than just the minimum amount of car insurance in Florida
These conclusions were based on a review of weather events that each cost more than $1 billion in damage. Tropical cyclones, droughts, severe storms, and inland flooding were identified as the most destructive weather patterns.
Learn more: Everything you need to know about car insurance in Texas
How much have rates risen?
According to the Bureau of Labor Statistics, the cost of auto insurance in September 2025 was up 3.1% from the prior year. Compared to two years ago, car insurance premiums are 20% higher and a whopping 43% higher than September of 2022.
Bannon said inflation and insurer losses are the two main drivers of premium increases. Climate change is a factor because weather influences insurer losses. "Climate change brings more frequent and severe storms that result in more claims and costlier repairs," Bannon explained. "When insurers pay out more in claims," he continued, "they often pass those costs onto policyholders."
Hodges agreed. "Unpredictable [weather] events, combined with increases in repair costs and extended repair times, are all fueling the sharp rise in auto insurance premiums."
Auto insurance coverage that protects from weather
Weather-related damages can lead to claims against your collision, comprehensive, or liability insurance.
Comprehensive insurance
Comprehensive insurance helps pay to repair your car after a non-collision accident. This includes damage from falling trees, hail, flying objects, and floods.
Comprehensive is an optional coverage that requires you to pay a deductible before any claims are paid.
Collision insurance
Collision insurance funds repair costs for your car when you are at fault in an accident. Weather can lead to a collision claim if heavy rain, wind, or icy conditions contributed to the accident. For example, you may be driving too fast in a storm and lose control on wet pavement. If you hit another car or an object, such as a tree, your collision insurance pays to fix your car.
Collision, like comprehensive, is an optional coverage that has a deductible.
Liability insurance
Liability insurance pays for injuries and property repairs resulting from accidents you cause. Weather can be a contributing factor, but many liability claims are not weather-related. However, if you lose control on a wet or icy road and crash into another car, your liability car insurance will pay for the other car’s damages and person’s injuries, up to your policy limits.
If someone else causes an accident that leaves you with medical bills or repair expenses, that person's liability insurance should absorb those costs.
Liability insurance is required in all states when you purchase car insurance.
Learn more about bodily injury liability and property damage liability
Gap insurance
Gap insurance pays off your auto loan if your car is deemed a total loss and the payout is less than your loan balance. Weather can cause you to tap your gap insurance. For instance, driving through a flooded road or extensive hail damage can cause your car to be totaled.
Gap insurance is optional coverage, available for newer cars only. There is no deductible.
Learn more: Most common types of auto insurance explained
Tim Manni edited this article.
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