How Extreme Weather and Climate Risks Affect Car Insurance Costs

How Does Extreme Weather Affect Car Insurance Costs?

Extreme weather such as hurricanes, floods and wildfires can damage or destroy vehicles. They can also cause hazardous conditions that make car accidents more likely. If you file a car insurance claim for a weather-related incident, your premiums may rise.

Even if you haven't filed a claim, your car insurance could go up if your area is experiencing extreme weather more often or has recently suffered a natural disaster. More frequent severe weather typically means more drivers filing insurance claims, increasing insurers' risk and costs.

Learn more: What Factors Affect Car Insurance Rates?

How Do Climate Risks Affect Car Insurance Costs?

Climate change is making severe weather events more frequent. The number of U.S. climate disaster events with losses of over $1 billion increased from an average of 6.7 events per year in the 2000s to an average of 13.1 events per year in the 2010s, according to data from the National Oceanic and Atmospheric Administration. In the last five years, there have been an average of 23 events per year, with 27 in 2024 alone.

In addition to becoming more common, severe weather events are becoming more intense. For example, the number of tropical cyclones worldwide isn't growing significantly, according to global reinsurer Munich Re, but the cyclones that do occur are becoming more extreme. Often, one severe weather event triggers related disasters. For example, Munich Re notes, the bulk of claims from Hurricane Helene weren't from high winds, but from the heavy flooding that followed.

Finally, climate change is bringing severe weather to places that historically haven't experienced it before. This can catch car owners unaware and unprepared for weather they never expected to see in their region.

What Types of Coverage Are Affected by Weather and Climate?

A full coverage car insurance policy includes several types of coverage, nearly all of which can be affected by weather and climate risk.

• Comprehensive coverage covers damage to your vehicle when you're not driving it. It may pay to repair damage caused by falling trees, hail, fire, floods, earthquakes, hurricanes, winter storms and tornadoes. Comprehensive insurance also covers your car if it's stolen or vandalized—for example, by looters following a disaster.

In addition to directly damaging your car, extreme weather can also make accidents more likely, affecting the following kinds of car insurance.

• Collision coverage: Pays to repair damage to your vehicle caused by rolling your car, hitting a pothole or colliding with another object, such as a car or fence.
• Liability coverage: Helps pay medical bills and car repairs for the other driver after an accident that's determined to be your fault. It also helps cover your legal costs if you're sued.
• Uninsured and underinsured motorist coverage: Can help pay your vehicle repair and medical bill costs if an underinsured or uninsured driver causes an accident.
• PIP insurance: Helps cover medical costs, lost income and other expenses if you or your passengers are hurt in an auto accident, no matter who caused it.

Tip: Comprehensive and collision coverage are optional unless your car is financed, but may be a smart purchase regardless if you live in an area prone to extreme weather.

Learn more: What Does Car Insurance Cover?

How to Lower Your Car Insurance Costs

You can reduce your car insurance costs by being aware of severe weather risks in your area and taking steps to prevent damage that could mean filing a claim.

• Monitor weather forecasts. Stay alert to predictions of extreme weather so you can take steps to protect your vehicle, such as covering it with blankets before a hailstorm or moving it to higher ground if flooding is forecast.
• Shelter your car. Parking in a garage or carport whenever possible reduces the risk of damage from hail, high winds or falling tree branches.
• Stay off the road. Avoid driving on icy roads, during high winds, in severe storms or when extreme weather is predicted.
• Keep your windows up. Closing your windows whenever you park your car helps keep rainwater, snow and hail from getting in and causing water damage or mold.
• Don't drive through water. Standing or flowing water that looks deceptively shallow could trap your vehicle.
• Accessorize wisely. Auto accessories such as snow tires or chains, jumper cables, a sturdy car cover and a windshield cover can help you prevent damage and avoid accidents.

Regardless of weather, there are some other tactics you can try to cut your car insurance costs.

• Increase your deductible. The deductible is the amount you're responsible for paying when you file a claim. Choosing a higher deductible generally lowers your premiums; just make sure you can afford the higher deductible if you have a claim.
• Bundle insurance. Many insurers reduce your premiums if you buy more than one type of policy, such as home and auto insurance. Bundling bonus: If the same weather event damages both your home and car, some insurers charge you a single deductible.
• Ask about discounts. Something as simple as putting your premiums on autopay or belonging to an organization might net you a discount on auto insurance. You'll never know until you ask.
• Add safety features. You may qualify for savings if your vehicle has safety devices such as antilock brakes, blind spot monitoring or airbags.
• Drive less. If you drive less than 12,000 miles annually, you'll likely qualify for a low-mileage discount. If you don't drive much at all, you might save money by opting for usage-based car insurance, such as a pay-per-mile plan.
• Work on your credit. Insurers in most states check your credit-based insurance scores when setting car insurance premiums. The same actions that can help improve your consumer credit score can positively impact your credit-based insurance score, which could save you money on car insurance.

Learn more: Best Car Insurance Discounts

The Bottom Line

Buying full coverage auto insurance can help protect your car and your finances from whatever Mother Nature has in store. Before purchasing a policy, though, make sure you understand what kinds of severe weather or natural disasters its comprehensive and collision insurance cover.

Shopping around to compare prices can help you find the car insurance you need at a rate you can afford. You can gather car insurance quotes by visiting insurance company websites or contacting insurance companies directly. If you'd like an easier way to investigate your options, Experian's free car insurance comparison tool can help. It collects auto insurance quotes from dozens of top insurance companies so you can quickly see which insurer offers the best rates.