Hail Netting Case Study: How Schomp Automotive Cut Hail Insurance Costs 40%

Background on Hail Damage & Business Disruptions 

In 2018, Schomp Automotive Group, a prominent dealer group in Colorado, faced significant financial impacts due to escalating hail damage. Within a single month, their newly acquired dealerships experienced three hailstorms, leading to nearly $200,000 in vehicle damage. 

“That month we purchased three new dealerships on the east side of Denver, and within a 10-day period they were hit with hail three times,” says Aaron Wallace, Dealer Principal at Schomp Automotive, which operates eight dealerships in the Denver area. “We had cars that were damaged, repaired, put back onto the front line and then damaged again – it was a significant disruption to our business.”

Insurers Dropping Coverage & Raising Premiums

Insurers have continued to drop the coverage, says Kevin Gast, Dealer Open Lot program manager at Ryan Specialty Group, an insurance broker. According to Gast, up to 70 percent of carriers have exited the space.

“Hail’s getting bigger and cars are being made with more lightweight parts, so the cost per car to fix has gone up,” Gast says. “Even on the East Coast and outside the hail belt, there’s more damage. But in hail alley, deductibles have gone from $500 a car to $3,500 with no aggregate, so dealers in places like Colorado are really getting hit hard.”

This surge in hail-related incidents caused Schomp’s monthly insurance premiums to skyrocket from $28,000 to $141,000—a staggering 400% increase.

The Solution: A Cost-Effective Hail Protection System

To combat these challenges, Schomp developed the HAIL NO® protection system, featuring translucent, high-strength anti-hail netting mounted to steel columns to shield vehicles from hail. In regions prone to hailstorms, proactive, innovative measures like hail netting not only safeguard assets but also offer substantial long-term cost savings.

This real world example underscores the financial benefits of implementing hail netting systems. Businesses can potentially save up to 50% on insurance premiums. For instance, the Schomp Automotive Group saw their annual premiums decrease from $1,693,275 to $1,015,965 after installing hail netting.

The ROI for Schomp:

Installation cost

Hail No's netting system runs $1,400–$1,750 per vehicle stall (roughly $8.25–$10.30 per square foot). Schomp Automotive's installation covers 1,105 vehicle stalls, putting total system cost at:

1,105 stalls × $1,400–$1,750/stall = $1,547,000–$1,933,750

Payback period

Payback = Total install cost ÷ Annual savings
$1,547,000–$1,933,750 ÷ $677,310 ≈ 2.3–2.9 years‍

>> Learn more: Can Hail Protection Lower Your Insurance Premiums?

>> Calculate your Insurance Savings and ROI

Choose Hail No for Your Hail Netting Needs

When it comes to customized hail protection solutions, Hail No is a trusted partner for businesses across multiple industries. HAIL NO® protection systems are innovative, patent-pending, weather-protection solutions developed by automotive industry veterans. As a custom manufacturer and installer of hail netting, Hail No offers tailored solutions that meet the unique needs of each client.

Why Work with Hail No?

• Expertise in designing and installing scalable hail netting systems.
• High-quality materials engineered for maximum durability.
• Responsive customer service and ongoing support.

Protect Your Business with the Most Effective Hail Solution

When hail season hits, your business needs a reliable defense to avoid costly damage and disruptions. Hail No Hail netting is the most effective, scalable, and affordable solution for protecting your assets.