Hailstorms Tops Weather-Related Insurance Losses in Texas

As hailstorms have become the number one reason for weather-related insurance losses in Texas, state authorities launched “War on Hail”, a symposium discussing the effects of such weather occurrence to the local insurance industry.

In most cases, tornadoes and hurricanes were the ones being highlighted by the media to account for big insurance losses. In the Lone Star State however, insurance losses within the period of 1999-2011 from hurricanes and tornadoes combined have only accounted to $10 million. This is slightly smaller compared to insured losses brought by hailstorms within the same period which have accounted to $10.4 million.

According to the Texas Department of Insurance, winds and hails have already produced a combined $20.2 insured losses, dwarfing the tornado-hurricane tandem.

A report from the Highway Loss Data Institute (HLDI) citing data from Nationwide, showed that across the United States, auto insurance claims for hail damage have increased more than double from 2010 and 2011. Evidently, the said insurance research institute has observed that hail-related auto insurance claims have an upward trend since the year 2008.

Texas auto insurance claim rate on hail incidents appeared to be the 11th highest among the states. The HLDI data also showed that the Lone Star state has the third-priciest hail losses last year, in around $65.1 million, trailing Illinois’ $70.2 million and New York’s $73.3 million.

Comprehensive auto insurance is the coverage type that will provide vehicle owners the necessary protection against damages from bad weather incidents such as hailstorms. With a higher rate of hailstorm incidents in the Lone Star State, Texas auto insurance consumers should strongly consider getting a comprehensive coverage.

In most states, comprehensive auto insurance coverage is optional and can be quite pricey making more consumers sticking to the minimum insurance coverage their state requires. However, if you live in Texas you are most likely exposed to hail incidents. Paying for a comprehensive auto insurance can be a wise decision for you.