If My Car Was Hit While Parked Will My Insurance Go Up?

A common concern for drivers is the financial impact of their parked car being hit. When such an incident occurs, the immediate thought often turns to whether insurance rates will increase. Understanding how insurance companies handle these situations and the relevant coverages can help alleviate some of this concern.

Understanding Auto Insurance Coverage for Parked Car Incidents

When a parked vehicle sustains damage, the applicable auto insurance coverages typically include collision coverage and, in some instances, uninsured motorist property damage (UMPD) coverage. Collision coverage generally helps pay to repair or replace your vehicle if it is hit by another vehicle or object, regardless of who is at fault for the incident. This coverage is usually optional, but it may be required if the vehicle is financed or leased.

Uninsured motorist property damage (UMPD) coverage can also apply if the at-fault driver is uninsured or if the incident is a hit-and-run, where the responsible party leaves the scene without providing information. With both collision and UMPD coverage, a deductible typically applies, which is the amount you pay out-of-pocket before your insurance coverage begins.

In most cases, if your parked car is hit by another moving vehicle, you are considered “not-at-fault.” The driver of the moving vehicle is generally held responsible because a parked car cannot move to avoid a collision. This distinction between “at-fault” and “not-at-fault” is important, as it influences how the claim is processed and the potential impact on your insurance premiums.

Steps to Take After Your Parked Car is Hit

Discovering your parked car has been hit requires immediate action to document the incident thoroughly. The first step involves assessing the damage to your vehicle and checking for any potential injuries, especially if you were inside the car at the time. If the other driver is present, exchange contact and insurance information with them.

Take multiple photographs and videos of the damage to your vehicle from various angles, including close-ups of specific dents or scratches. Capture images of the surrounding area, such as landmarks, street signs, debris, or tire marks, to help establish the location and circumstances of the incident. Look for witnesses who may have seen the event and obtain their contact information. If the responsible party is not present, check for any notes left on your vehicle.

Contacting law enforcement to file a police report is important, particularly if there is significant damage, if the other driver is uncooperative, or if it is a hit-and-run. An official police report documents the incident and can be necessary when filing an insurance claim. If surveillance cameras are nearby, inquire about obtaining any footage, as this can provide valuable evidence.

Filing an Insurance Claim for a Not-At-Fault Accident

You generally have two options for filing the claim: either with your own insurance company (a first-party claim) or, if the at-fault driver is identified, with their insurance company (a third-party claim).

When contacting your insurer, provide all the details and evidence you collected, such as photographs, the police report, and any witness information. If you file with the at-fault driver’s insurance, they will typically assign a claims adjuster to investigate the incident. This adjuster will review the gathered information, which may include accident reports and witness statements, to determine liability.

The claims adjuster will also assess the damage to your vehicle, often by scheduling an inspection or requesting repair estimates. While the insurance company may suggest a repair shop, you typically have the right to choose your own. After the assessment, the insurer will make a decision regarding the claim and, if approved, issue payment for the repairs, minus any applicable deductible if you filed through your own collision or UMPD coverage. If the at-fault driver’s insurance pays, you generally do not pay a deductible.

How Not-At-Fault Accidents Can Affect Your Insurance Premiums

When your parked car is hit and you are not at fault, your insurance premiums should not significantly increase. This is because the financial responsibility typically falls on the at-fault driver’s insurance provider. However, several nuances and exceptions can influence this outcome.

One factor is the type of claim you file. If the at-fault driver is identified and their insurance pays for the damages, your rates are unlikely to be affected. If the at-fault driver is unknown (as in a hit-and-run) or uninsured, and you file a claim under your own collision or uninsured motorist property damage (UMPD) coverage, there is a possibility of a rate increase.

The concept of “claims frequency” can also play a role. Insurance companies use statistical models to assess risk, and a history of multiple claims, even if not-at-fault, can sometimes lead an insurer to perceive a policyholder as a higher risk. This might result in a premium adjustment or, in some situations, make it more challenging to obtain new coverage. Insurers typically review claims history for a period of three to five years when determining rates.

State laws and regulations also impact whether a not-at-fault accident can raise your premiums. Some jurisdictions have consumer protection laws that prohibit insurance companies from increasing rates solely due to a not-at-fault incident. Furthermore, “accident forgiveness” programs offered by some insurers can prevent a rate hike after a qualifying not-at-fault accident, often as a perk for drivers with a clean record or for an additional cost. Ultimately, the specific impact on your premiums will depend on your individual policy, your driving history, and your insurance provider’s specific practices.