Does auto insurance cover private property?
Your car insurance may cover accidents on private property, depending on the circumstances. Learn when these accidents are covered, when you should file a claim, and whether or not your auto insurance rates might go up.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
UPDATED: Oct 13, 2023
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Oct 13, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
If you’ve had a car accident on private property, you may be worried that your car insurance won’t cover it. How should you handle a situation like this? Read on to learn how to deal with car insurance claims for accidents on private property.
Things to Remember
Key Info | From Experts |
---|---|
Private property is any property owned by any entity other than the government | Cornell Law School Legal Information Institute |
Regardless of where an accident occurs, if you're found to be at fault, it can increase your insurance rates by up to nearly 50% | Quadrant |
You don’t want to get into an accident without the right car insurance, regardless of location. Enter your ZIP code and get a free quote on auto insurance and shop around right now.
Does car insurance cover accidents on private property?
If you only carry the minimum insurance coverage required by your state, this will only pay for damage to somebody else’s property and medical bills. Insurance would not pay for damage to your vehicle if the accident were your fault.
However, if you carry comprehensive or collision coverage, this insurance should pay for the damage to your vehicle. Having this can also be helpful if the other party involved disputes blame. It may also be wise to carry uninsured or underinsured motorist coverage, which would help cover costs if the other party does not have proper protection.
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Who is at fault?
The property owner may be wholly or partly to blame in some cases. For example, you may have crashed your car due to existing damage to a road surface. If the property owner was aware of the damage but had not taken steps to fix it, they may be liable.
If you believe that the property owner may be at least partly at fault, you need to gather information to substantiate your claim. For example, take photos of the poor signage, bad road conditions, or other contributing factors, so your insurance company can decide. It would also help to get in touch with the property owner to discuss the situation. If a third party is involved, the property owner may have access to camera footage that could help to substantiate the claim.
Regardless of who is at fault, you should lodge a claim with your insurance company and provide as much detail as possible.
Should I get a police report?
If the damage is significant or someone sustains an injury, try to get a police report and submit it to your insurance company. Note that the police will not automatically attend an accident on private property without sufficient reason. That may make it more challenging to get a police report. In most cases, the insurance company does not require a police report, but you should gather as much information as possible from the scene in its absence. Information should include insurance and phone number of anyone involved, contact details from witnesses (if any), and images or video from the accident scene.
What is private property?
According to the Cornell Law School Legal Information Institute, private property is property owned by anyone or anything other than the government. For example, this could include the parking lot at a mall or the roads that crisscross a theme park. In other words, you probably drive on private property every day. So if you have an accident that’s not on a public road, it very well may be on private property.
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Will my rates go up after an accident on private property?
If you file a claim, your rates may increase. The cost of your auto insurance after an accident will depend on several factors, including your previous driving record and claims history.
Ultimately, the effect on your car insurance coverage is dependent on who is at fault, who your coverage provider is, where you live, and other related factors. However, to give you an idea of what may happen, we’ve compared the rates for a clean driving record to a driving record with one accident for the major insurers across the country in this table. Take a look.
Average Annual Auto Insurance Rates for a Clean Record vs One Accident
Companies | Clean record | With one accident |
---|---|---|
USAA | $1,933.68 | $2,516.24 |
Geico | $2,145.96 | $3,192.77 |
American Family | $2,693.61 | $3,722.75 |
Nationwide | $2,746.18 | $3,396.95 |
State Farm | $2,821.18 | $3,396.01 |
Grand Total | $3,102.08 | $4,076.60 |
Progressive | $3,393.09 | $4,777.04 |
Travelers | $3,447.69 | $4,289.74 |
Farmers | $3,460.60 | $4,518.73 |
Allstate | $3,819.90 | $4,987.68 |
Liberty Mutual | $4,774.30 | $6,204.78 |
As you can see, rates can vary significantly from one auto insurance company to the next.
Final Thoughts About Accidents on Private Property
If your car is damaged on private property, coverage will depend on the type of insurance you have in place and the liability of the parties involved. In some cases, the property owner may be at least partially responsible. You may not be able to get a police report to file with your claim, so you should gather as much information from the scene as possible. Unfortunately, your premiums may go up following a claim, so be sure to consider the extent of the damage before you proceed.
Before you go, take a moment to use your ZIP code to get a free quote on auto insurance and make sure you’ve got good coverage in case of an accident.
Frequently Asked Questions
Does auto insurance cover private property?
Yes, auto insurance can cover private property, but it depends on the specific coverage you have and the circumstances of the incident.
What type of auto insurance coverage typically covers private property damage?
Property damage liability coverage is the specific type of auto insurance coverage that typically covers damage to private property caused by your vehicle.
How does property damage liability coverage work?
Property damage liability coverage pays for the cost of repairing or replacing someone else’s property if you are at fault in an accident. This can include damage to private property such as fences, buildings, or other structures.
Are there any limitations to property damage liability coverage?
Yes, property damage liability coverage has limits. The limits are usually stated as a maximum amount the insurance company will pay per accident. It’s important to review your policy to understand the specific limits of your coverage.
Can property damage liability coverage also cover damage to my own private property?
No, property damage liability coverage only covers damage to other people’s property. If you want coverage for damage to your own vehicle or property, you would need additional coverage such as collision or comprehensive insurance.
Are there any exceptions when auto insurance does not cover private property damage?
There are certain situations where auto insurance may not cover private property damage. For example, intentional damage caused by the policyholder or damage that occurs while the vehicle is being used for business purposes may not be covered. It’s important to review your policy or consult with your insurance provider to understand any specific exclusions.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.