If Someone Hits My Parked Car, Does My Insurance Go Up?

When a parked car is damaged, many drivers immediately wonder about the impact on their insurance. Understanding the proper steps to take and how insurance policies respond can clarify what happens in such a scenario. This article explains the process and how these incidents might affect your insurance premiums.

Immediate Actions After the Incident

Discovering your parked car has been hit requires immediate, methodical steps for any potential insurance claim. Assess the damage to your vehicle and ensure the surrounding area is safe. If the person who caused the damage is present, exchange contact and insurance information. If they left a note, secure it and record any details provided.

Document the scene thoroughly. Use your smartphone to take photos and videos of the damage from various angles, including wide shots of the vehicle’s position, surrounding landmarks, and any debris. Capture close-ups of paint transfer or specific impact points. If there are any witnesses, ask for their contact information, as their accounts can provide valuable insights.

Reporting the incident to the police is advisable, especially if there is significant damage, if the other driver is unknown, or if it constitutes a hit-and-run. For hit-and-run incidents, contact the non-emergency police line to file a report, which creates an official record and is often required by insurers. Obtain a copy of the police report or its case number. Promptly notify your own insurance company about the incident, providing all gathered details and evidence.

Understanding Relevant Insurance Coverage

When your parked car is damaged, several types of insurance coverage may apply, depending on your policy and the circumstances. Collision coverage pays for damage to your vehicle resulting from a collision with another car or object, regardless of fault. This coverage is useful if the at-fault driver is unknown, as in a hit-and-run, or if they are uninsured; a deductible applies to such claims. Many states do not mandate collision coverage, but it is often required for financed or leased vehicles.

Uninsured Motorist Property Damage (UMPD) coverage provides protection if an uninsured driver damages your vehicle. This coverage may also apply in hit-and-run scenarios, depending on state regulations, covering repairs up to your car’s actual cash value. UMPD has a lower deductible compared to collision coverage, which reduces your immediate out-of-pocket expenses. However, some states may not offer UMPD for hit-and-run incidents, requiring reliance on collision coverage instead.

Property Damage Liability coverage, held by the at-fault driver, covers the damage to your car if they are identified. This coverage is legally required in most states and pays for damage the policyholder causes to another person’s vehicle or property. Property damage liability does not cover damage to your own vehicle; its purpose is solely to compensate others for damages you cause.

A deductible is the amount you are responsible for paying out-of-pocket before your insurance coverage begins to pay for a covered claim. Deductibles apply to collision and UMPD claims, and the amount chosen influences your premium, with higher deductibles leading to lower premiums. Understanding these coverage types and their associated deductibles clarifies the financial responsibilities and options available after a parked car incident.

How Insurance Companies Handle Claims

Once you have gathered the necessary information and notified your insurer, the claims process begins with submitting a formal claim. This can be done through various channels, including phone calls, online portals, or mobile applications. When initiating the claim, you will provide details about the incident, such as the date, time, and location, along with any collected evidence like photographs, witness contact information, or the police report number.

Following submission, the insurance company will begin its investigation to assess the claim and determine fault. This process involves reviewing all provided evidence and potentially contacting the other party’s insurer if identified. The insurer may also dispatch a claims adjuster to inspect your vehicle, assessing the damage extent and estimating repair costs.

Damage assessment can occur through various methods, including in-person inspections by an adjuster or by having you submit photos for an estimate. Once the damage is appraised, the insurance company will provide a repair estimate and outline the settlement amount. This amount will factor in your deductible, which is subtracted from the total repair cost before payment is issued.

The final step involves getting your vehicle repaired and settling the claim. You can choose your preferred repair shop, and the insurance company will either pay the shop directly or reimburse you for covered costs. Clear communication with your insurer and retaining all documentation related to the incident and repairs are important throughout this phase.

Factors Affecting Your Insurance Premiums

Whether your insurance premiums increase after your parked car is hit depends on several factors, primarily fault and the type of claim filed. If you are determined not at fault and the responsible driver is identified and insured, your premiums are less likely to increase. This is because the at-fault driver’s property damage liability coverage covers the repair costs, meaning your insurer does not bear the financial burden.

Despite being not at fault, some insurance companies may still raise rates. This can happen if they view involvement in any accident, regardless of fault, as an indicator of increased risk for future claims. However, numerous states have regulations that prohibit insurers from increasing premiums for not-at-fault accidents, providing protection for drivers. Specific laws vary by state, so understanding local regulations is beneficial.

When the at-fault driver is unidentified, such as in a hit-and-run, or if they are uninsured, you file a claim under your own policy’s collision or Uninsured Motorist Property Damage (UMPD) coverage. While these are considered not-at-fault claims, filing them can lead to a premium increase. Many states have laws that prevent insurers from raising rates due to UMPD claims when you are not responsible for the accident.

Your overall claims history plays a role in determining premium adjustments. A history of multiple claims, even if not at fault, can signal a higher risk to insurers, leading to increased rates or even non-renewal of your policy. Insurers consider claims for three to five years when assessing your risk profile. While a single not-at-fault incident might not have a substantial impact, a pattern of claims could.

The severity and cost of the damage influence premium changes. Accidents resulting in extensive damage and higher payouts are more likely to trigger a rate increase than minor incidents. Some insurers offer “accident forgiveness” programs, which can prevent a premium hike after your first at-fault accident, and in some cases, may extend to certain not-at-fault incidents. These programs vary by insurer and may be an included benefit or an optional add-on.