Weather Damage and Your Car Insurance Rates - Hail, Hurricanes, and Tornadoes

Anyone who saw even one news story in 2005 knows the deadly effects of hurricanes. 2005 was a disastrous year for hurricanes, and those who lost their homes and lost loved ones are still struggling to regain order in their lives. While it is a much more minor concern, almost 700,000 cars were lost or damaged by hurricanes in that year alone. These claims cost insurers over three billion dollars!

Obviously, this record year is putting pressure on car insurance companies to raise rates, especially in the most hurricane-prone states. Meteorologists are predicting that the next 15 to 20 years will produce similar hurricanes, and damage will continue to rise. What does this mean for car owners in areas hit by hurricanes? Is it wise to continue insuring your car against hurricane damage?

To Insure or Not to Insure

Damage to vehicles caused by weather, including hurricanes and flooding, is covered under your comprehensive coverage. If you have a loan on your car, banks and other lenders require that you keep comprehensive coverage on your vehicle for the life of the loan. For those car owners, the decision is made for them. However, if you own your car outright, you need to make the decision on your own. First, look at the value of your car. Could you afford to replace it if it were damaged or even completely lost? If the answer is no, you'll probably want to keep paying those premiums, even if they go up.

Next, look at the area in which you live. In 2005, Louisiana, Mississippi, and Florida were the hardest hit in terms of lost or damaged vehicles. This shouldn't be much of a surprise to geography buffs, but even residents of landlocked states like Tennessee and Arkansas reported thousands of hurricane-related car insurance claims in 2005. If you live in Minnesota or Nebraska, you're probably pretty safe, but if the hurricane activity worsens, many states near the coast may see rising waters.

Choose Coverage that Meets Your Needs

Keep in mind that homeowners insurance costs in states frequently hit by hurricanes can be extremely high. Your mortgage lender undoubtedly requires you to keep your home insured the same way your car loan lender requires full coverage. Minimizing your car insurance costs as much as you can will help with your overall insurance bill. Think about it. What's more devastating to lose, you house or your car? A vast majority of people would say their house. So, even if you're lucky enough to own it outright, you probably will choose to continue to insure it, even with those extremely high rates.

This means that you may want to get creative with your car insurance. If cutting your coverage isn't an option, the best thing to do is shop around and find the lowest rate. Many people in hurricane-prone areas are used to paying a lot for insurance. Just because you're used to high numbers, it doesn't mean you can't find lower ones! Using websites like this one can help you find the best deal. You have enough things to worry about; your car insurance shouldn't be one of them.