How Hail, Floods and Severe Weather Push Auto Rates Up

Severe weather can raise auto insurance rates because hail, floods and wind damage are paid under comprehensive coverage. The NAIC says comprehensive coverage pays for damage from almost all causes other than collisions, including fire, severe weather, vandalism, floods and theft. ¹ When an area has a bad storm year, the comprehensive losses an insurer pays go up. Insurers use that loss history, along with other data, when they decide what to charge for future policies.

The effect is not automatic or uniform, though. Weather mainly affects comprehensive pricing, which is only one part of a policy. It is also only one of many cost pressures. A 2026 Illinois example below shows a record storm year alongside falling auto rates.

The NAIC explains that an auto policy's price comes from two steps: underwriting, which assesses the risk, and rating, which sets a price based on what the insurer expects a claim to cost. ¹ The NAIC also says that claim frequency is the single greatest influence on rating, meaning how often an insured event happens within a group compared with the number of policies in it. ¹ A hailstorm that damages thousands of parked cars is a spike in claim frequency for one area.

In practice, the path looks like this:

1. Storms hit and comprehensive claims rise. Hail, flooding and wind produce many claims at once.
2. The insurer reviews its loss history. Actuaries compare what was paid with the premium collected for that coverage.
3. The insurer files a rate change with the state. The filing explains the expected costs behind the request. Our guide to what a rate filing is covers the steps and terms.
4. Rates change at new business and renewal dates. Timing depends on the filing and on the state's review process.

Where you live matters too, because rating uses geographic territory. The NAIC lists geographic territory among the specific factors that affect your rate. ¹ See why car insurance costs more in some cities for more on location.

Illinois shows how storm losses show up in an insurer's own numbers. In an August 25, 2026 statement, State Farm said its Illinois customers filed more home and auto catastrophe claims through July than customers in any other state. ³ The company reported more than 96,000 catastrophe weather-related home and auto claims in 2026, with auto catastrophe claims 100% above the 10-year average. ³ It also said that in 2025 it paid $457 million in Illinois hail claims, third highest in the nation. ³ These are the company's own figures.

Now the rate side. Here is what that same storm pressure looked like in a recent filing, which was for homeowners insurance rather than auto. State Farm Fire and Casualty Co. filed with the Illinois Department of Insurance, tracking number SFMA-135045614, for a 7.9% change to its Illinois homeowners program. The company's actuaries calculated a need of 12.5%. ² Reporting on the filing says the department marked it "Filed" on October 5, and because Illinois is a use-and-file state, that status does not mean the department approved the rates. ²

The new rates apply to new business from October 1 and to renewals from December 1. ²

The 7.9% is a program-wide average, not a figure for any one household. It combines homeowners, renters and condominium products moving in different directions, with standard homeowners up 8.5%, renters up 5.8% and condominium unitowners down 3%. ² Each person's change depends on their own policy and rating details.

The filing's stated reason was weather. Reporting says the filing describes the rate need as "primarily driven by expected catastrophe losses." ²

For standard homeowners policies, expected catastrophe losses account for 55.2% of premium in the company's projections. ² That is a homeowners number, not an auto one, but it shows how catastrophe losses can be written into a filing.

The same State Farm statement shows that storms do not move auto rates in only one direction. State Farm said it lowered Illinois auto rates twice over the past year by a combined 15% on average, down 5.7% in July 2025 and another 9.6% in December. ³ The company said the July 2025 decrease was driven by trends projecting lower claims costs. ³ Those are the company's statements about average changes, and they do not describe any one policy. Our State Farm explainer covers price changes for that insurer's customers.

Weather is one input among several. State Farm itself listed construction costs, severe weather, inflation and excessive litigation ³ as pressures on insurance costs. For the auto-specific side of repair prices, see how repair costs push car insurance prices up.

We are not affiliated with the insurers named.

• Comprehensive is the weather coverage. Hail, floods and storm damage fall under comprehensive, not liability.
• Rate filings are the paper trail. A filing shows what a company asked for, and the state's status shows whether it was filed or approved. Those are different things.
• Averages are not personal prices. A percentage in a filing is an average across policies. It does not predict what any one bill will be.
• Local rules and storms differ. Check your state insurance department for how rates are reviewed where you live. For Illinois, see our Illinois rate guide.

If your renewal notice shows a change and you want to see what other prices look like, you can Compare quotes. Quotes are estimates and are not binding or final.

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• ¹ Official record: NAIC description of comprehensive coverage, how auto rates are set, claim frequency and the geographic territory rating factor.
• ² Reported: Insurance Business report on the State Farm Fire and Casualty Co. Illinois homeowners filing, including the 7.9% filed change, 12.5% indicated need, October 5 "Filed" status, effective dates, 8.5%, 5.8% and 3% product changes, and 55.2% catastrophe share.
• ³ Reported: State Farm's own newsroom statement of Illinois claim counts, 100% auto catastrophe claims above the 10-year average, $457 million in 2025 hail claims, and the 5.7%, 9.6% and combined 15% average auto rate decreases. These are company-reported figures.