Why Every Car Dealership Needs Hail Protection

Imagine waking up to a severe hailstorm and knowing your entire vehicle lot is at risk—hundreds of cars, millions in inventory, all exposed to the elements. For car dealerships, hailstorms aren’t just a weather event; they’re a financial disaster.

Every year, hailstorms cause billions in damages, with auto dealers being among the hardest hit. That’s why vehicle lot protection from hail damage isn’t optional—it’s a necessity. In this article, we’ll explore the true cost of hail damage for dealerships and how hail netting solutions offer the most effective defense.

The Cost of Hail Damage for Car Dealerships

A single hailstorm can lead to:

• 🚘 Total Inventory Losses – Hail-damaged vehicles often require costly repairs or deep discounts to sell.
• 💸 Insurance Premium Hikes – Some dealerships have seen insurance costs increase by over 400% after multiple hail claims.
• ⏳ Operational Downtime – Hail damage leads to weeks of delays in sales and repairs.
• 😡 Lost Customer Trust – A dealership with a storm-damaged inventory may struggle with sales perception.

For example, in 2018, a Colorado-based dealership saw its monthly insurance premiums jump from $28,000 to $141,000 after back-to-back hail claims—a nearly 400% increase. These skyrocketing costs can make insurance unsustainable for dealerships operating in hail-prone regions.

Common Hail Protection Methods – What Works and What Doesn’t

Dealerships use different strategies to protect their inventory, but not all solutions are equal:

1. Relocating Vehicles Indoors (Impractical for Large Lots)

Some dealerships try to move vehicles indoors when hailstorms approach. The reality? Most lots have too much inventory and too little indoor space.

✔ Pros: Works for small, high-value inventory
❌ Cons: Labor-intensive, time-sensitive, and impossible for large lots

2. Insurance Coverage (Not a Long-Term Solution)

While comprehensive insurance helps recover losses, repeated claims mean steep premium increases, often making coverage cost-prohibitive over time, and does not avoid the hassle of sales delays and repairs.

✔ Pros: Provides financial recovery post-storm
❌ Cons: Doesn’t prevent damage, and rates increase dramatically after claims

3. Hail Netting: The Best Solution for Vehicle Lot Protection

Hail netting for car dealerships provides year-round, cost-effective protection without the limitations of other methods.

✔ Pros of Hail Netting for Car Dealerships:

• Protects 100% of covered inventory from hail damage
• Mitigates insurance premium hikes by eliminating repeated claims
• Pays for itself in ~2 years through insurance savings
• Allows full lot visibility for customers, unlike enclosed structures (maybe add an image?)

For dealerships, investing in hail netting is a financial strategy as much as a protective measure.

>> Related Article: Comparing Hail Netting to Other Hail Protection Systems

How One Dealership Saved Over $600,000 Annually with Hail Netting

A dealership in a high-risk hail zone was facing unsustainable insurance costs after multiple claims. Installing hail netting led to significant hail insurance premium savings.

Before Hail Netting Installation:

🚧 Annual Insurance Premium: $1,693,275
⚠ Frequent hail claims leading to higher premiums
📉 Discounted vehicles due to hail damage

After Installing Hail Netting:

💰 Premium Reduction: $1,015,965 (40% savings)
✅ No hail damage claims since installation
🚀 Increased inventory value by maintaining pristine condition

>> Read the Case Study: How One Car Dealership Saved Thousands with Hail Netting

Why Every Dealership Needs to Act Now

Hailstorms aren’t going away—in fact, they’re increasing in frequency and severity. Waiting until after a major storm to invest in protection can mean irreversible financial losses.

Hail netting is not just an investment in protection—it’s an investment in financial stability. With rising insurance costs and unpredictable weather, dealerships can’t afford to take risks. The solution is simple: protect your lot before the next storm hits.

>> Learn More: Protecting Auto Dealerships from Hail Damage: A Guide