Hitting a Parked Car, Auto Insurance Implications

20% of all car crashes occur in parking lots and covered garages. In addition, over 60% of drivers have reported being in an accident where they discovered someone had hit their car while they were away.

Hitting a parked car shouldn’t terrify you since you should already carry liability auto insurance per state law. However, your car insurance rates will increase if you’re at fault for the collision.

If someone hits your parked car and drives away, you may be able to file a claim with your uninsured/underinsured motorist coverage (UM/UIM). 

You can’t buy a Geico hit-and-run policy, but with UM and UIM insurance, your policy will pay for damages caused by hit-and-run drivers and drivers who do not have car insurance or don’t carry enough coverage.

State insurance laws determine when UM/UIM vs. collision pays for hit-and-run drivers or other parked car accidents. Keep reading to learn more about parked car insurance, the insurance implications of hitting a parked car, and what you should do when someone hits your brand-new car or if someone hits your car and drives away.

What To Do When Someone Hits Your Parked Car

First, if you are not injured physically, ensure that the accident scene is not obstructing the roadway or street. If you are injured and need medical attention, call 911 first. Then, call the police immediately so you can file an accident report. 

If you can, attempt to gain the at-fault driver’s information. You’ll want this to hold them responsible, and important information can include:

• Name of driver
• Driver’s address
• Phone number of driver
• Copy of their vehicle registration
• Auto insurance information

It’s great to snap photos of this information with your phone to speed up the process or write it down if you have a pen and paper handy. You should also take pictures of any damages to your vehicle and personal property.

During busy times, police officers may not show up to a hit-and-run accident, depending on your state and if there were any injuries. These photos will be very helpful if you have to file a police report after the fact. 

If someone hits my car in a parking lot, am I covered?

If someone hits your car in a parking lot, you are usually covered in any case of an accident due to your auto liability coverage. If you have collision auto insurance coverage, then your insurance will pay for it if the guilty party drove off and didn’t leave a note. 

The person responsible for a parked car accident is expected to leave their information neatly tucked under your windshield wiper. However, suppose you are the unfortunate victim of a hit-and-run. In that case, and depending on where you live, collision coverage or UM/UIM will pay for your damages minus the deductible.

Does insurance cover hit-and-runs?

Depending on your state, collision insurance or uninsured motorist insurance covers hit-and-run accidents, even those involving parked cars. However, insurance will not cover hit-and-runs if you only carry liability coverage.

There is no such thing as Geico parked car insurance or State Farm hit-and-run parked car insurance, but you can buy coverage from both these companies and other national insurers to protect you from hit-and-run and uninsured drivers. So parked car insurance from Geico is possible, it just isn’t called that. 

What To Do After You Hit a Parked Car

Park your car out of the way for safety and approach the other vehicle to see if there are occupants. If no one is there, you should leave your contact and insurance information behind as described above. 

Of course, some people with questionable ethics might leave a note. If you’re thinking about leaving the scene of an accident because it wasn’t that bad without leaving a note, you could face jail time, suspension of your driver’s license, and an increase in your rates if discovered.

What are the auto insurance implications after hitting a parked car?

There is a good chance your monthly car insurance rates will go up in the case of an accident, even a parked car collision. In addition, you can expect to pay more if you’re already a high-risk driver with multiple accidents or moving violations.

Alternatively, if someone hits your car without causing expensive damage, you may not want to file a claim to avoid a rate increase. For example, if the cost of repairs is less than your collision or UM/UIM deductible, it won’t be worth filing a claim.

Do you have to pay a deductible if you hit a parked car?

If you hit a parked car, you won’t have a deductible since it’s covered by liability insurance. However, you will have to pay an auto insurance deductible if you file a claim with your collision policy for the damages to your car.

Does accident forgiveness cover hitting a parked car?

Accident forgiveness is an add-on feature offered by several national auto insurance companies. The basic premise is that your rates will not go up after a minor accident if you’ve avoided filing a claim over the last five years.

You can use accident forgiveness if you hit a parked car as long as you carry this add-on as part of your policy and the cost of the accident doesn’t exceed your company’s threshold.

Some companies limit accident forgiveness coverage to collisions that cost less than $500, so shop around and compare multiple policies if this add-on is important to your coverage.

Which auto insurance companies have accident forgiveness? Most national carriers offer it, including:

• Allstate auto insurance
• American Family auto insurance
• Erie auto insurance
• Farmers auto insurance
• Geico auto insurance
• The Hartford auto insurance
• Liberty Mutual auto insurance
• Nationwide auto insurance
• Progressive auto insurance
• Travelers auto insurance
• USAA auto insurance

You can automatically earn accident forgiveness with some of these companies after you remain accident-free for a few years. If you have coverage with any of the above companies, check with an agent to see if you already qualify for accident forgiveness. 

What You Need to Know About Hitting a Parked Car

Hit-and-run accidents are increasing at a rate of over 7% year over year. In Florida alone, there were over 50,000 hit-and-run accidents by the year’s midpoint. Considering that others may not have the same moral compass as you, it’s best to buy the right auto insurance policy.

Your liability insurance will cover any damages you cause when hitting a parked car, but you’ll need collision or uninsured motorist coverage to pay for someone hitting your car. 

Does uninsured motorist cover hit-and-runs? Car insurance will cover hit-and-runs if you carry collision and UM/UIM coverage, but you’ll be required to pay a deductible before insurance kicks in. 

Speak with your insurance agent to confirm you’re covered when hitting a parked car. If you need to buy auto insurance, compare multiple quotes from the best auto insurance companies in your state.