A hail storm can easily cause thousands of dollars of damage to your car, denting metal and cracking vinyl and glass surfaces. Vehicle owners have several decisions to make when it comes to hail damage. These decisions include how or even if they’re going to fix the damage, implications on the vehicle’s resale value, and how it affects any automotive loans. Find out more about the implications of hail damage and how to make the best decision based on your circumstances if your car falls victim to a summertime storm.
How Costly Is Hail Damage Repair?
Hail damage claims around $3,000 on average, but the costs can exceed $10,000 depending on the vehicle and the extent of the damage. Some repairs may be quite labor-intensive and require costly new parts. Comprehensive car insurance will cover it up to a specified threshold based on its value or may choose to total the vehicle out. Estimating hail damage is usually done by adding several costs, including dent removal labor, labor to remove and install replacement parts, any needed replacement parts, painting costs like materials and labor, and sales tax.
The number and severity of dents, coupled with other damage like broken glass and other components like chrome, can add up to high dollar amounts. As a general guideline, the newer the vehicle, the more advisable it is to repair it to retain its value and making it easier to sell. Hail damage may also cause safety concerns that need to be addressed.
Some people may decide not to repair hail damage, especially if they only have liability insurance, but not repairing damage requires careful consideration. If you submit the claim to your insurance and then choose to pocket the insurance company’s damage check, you may have to pay down the car loan. The resale value of the vehicle is also reduced. Hail damage repair can be quite complex, potentially affecting many areas of the car body with dozens of dents and other damage.
How Is Hail Damage Repaired?
Conventional hail repair includes filling in dents and repainting panels that aren’t heavily damaged. Some panels need to be replaced if they are heavily dented, and other components like chrome and glass may need replacement as well. Paintless dent repair, known by some as PDR, is possible if the hail didn’t damage the paint. Dents are carefully fixed through metalworking through this cost-effective method. Paintless dent repair is typically priced by the number of dents and their width and depth. Larger dents and a higher dent count increase the dent repair cost, sometimes significantly. Technicians often need to remove and install vehicle components to access the metal to make repairs. For example, door upholstery may need to be removed to fix dents.
If paintless dent repair isn’t an option for part or all of the repair, body panels will need additional work like filling in dents, repainting, or replacement. Costs for labor and materials will go up as well. Once properly repaired, hail-damaged cars retain their resale value, especially with paintless dent repair methods that preserve the original finish.
How Do You Buy and Sell a Hail-Damaged Vehicle?
Hail-damaged cars can be purchased for a steep discount, especially after a large storm that created a swath of damage. Repairing the damage may exceed the expected profit from selling a vehicle as-is. Buying a hail-damaged car, especially with the intent to repair, can be a tricky undertaking. Assessing hail damage requires a lot of research. Dent repair difficulty varies depending on size, placement, access to the panel, and whether new parts or paint is needed. It’s best to request a repair estimate when purchasing a hail-damaged vehicle.
If a vehicle’s damage exceeds its value, it will be totaled and a salvage title issued. Buyers will get a reasonable price but will have to make repairs or live with cosmetic damage that will detract from future value.
How Does Hail Damage Affect an Automobile Loan?
Vehicles financed or leased usually must be fixed to protect the collateral’s value for the lienholder. Finance or leasing companies often must approve how car owners use the claims payout, and some insurance companies cut checks directly to the repair shop. Typically those who decide to pocket insurance money rather than fix damage are outright owners with no lease or loan.
Financing the purchase of a hail-damaged vehicle may be tricky, and insurers likely won’t cover existing damage and may deduct this from any future accident claim. It’s best to notify lenders and insurance agents of the damage upfront to make sure you have proper financing and insurance coverage.
Is Hail Damage Reported to CARFAX and Similar Services?
Hail damage typically won’t appear on CARFAX and other car report services because it isn’t structural in nature or the result of a collision. CARFAX reports protect consumers from purchasing vehicles with fraudulent or undocumented past or prior accidents or losses but are not always comprehensive. Not all car repair services are required to report work done.
Insurance companies and car collision centers may report hail damage. Car owners can purchase a CARFAX report and request corrections like hail damage reported as structural damage. Ensuring the report is correct will protect car owners from issues should they choose to trade in or sell at a later point.
Hail damage that exceeds the vehicle’s value will result in the car being reported as totaled, much like those with extensive collision damage. Insurance companies will pay out the vehicle’s actual value and not the amount owed on a loan, creating potential negative equity. Some insurance companies offer gap policies covering the gap between payoff value and the loan amount if the loan exceeds the car’s value.
Contact Rydell Auto Body and Glass
If you have any questions about hail damage, contact Rydell Auto Body and Glass. Our knowledgeable staff will be able to give you options for handling hail damage that meets your needs. Paintless dent repair is also available as an option, so stop by and talk to us today about your hail-damaged vehicle. At Rydell, our ASE-certified technicians have over 100 years of combined experience in high-quality repairs. We believe in our work and offer a lifetime guarantee on all work we complete on your vehicle.
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