Will My Insurance Go Up If Someone Hits My Parked Car?

Accidents can happen at any time in crowded places like parking lots and along the sides of roads. Many people who own cars worry that if someone hits their stopped car, their insurance rates will go up. When you get back to your car after running errands, you might find a dent or scratch on the side from an accident that was not your fault.

This brings up an important question: will this cause your insurance rate to go up? In many situations, the answer depends on a number of things, such as your insurance policy, who was at fault, and how you file a claim.

We will talk about what happens when someone hits your stopped car, whether your insurance will go up, and how you can handle the situation afterward.

Understanding Car Insurance Basics

Before you can understand how a parked car accident affects your insurance rates, you need to know what car insurance is and how it works. The way your insurance company handles these kinds of cases may depend on the type of coverage you have.

Liability Insurance:If you are to blame in an accident and your insurance covers the damage you caused, this type of insurance protects you. If someone hits your stopped car, your liability insurance will not cover it because you were not at fault.
Accident Insurance: If you have accident insurance, it will pay for damage to your car no matter who is at fault. In the event that you have an accident while your car is stopped, this type of insurance is most likely to pay for it.
Comprehensive Insurance: This type of insurance includes damage from things other than accidents, like theft, vandalism, or natural disasters. This does not directly apply if someone hits your parked car, but it could be used if your car is hurt by something like falling objects.

What Happens When Someone Hits Your Parked Car?

First, it is important to know that if someone hits your parked car, you probably are not at blame unless you were parking illegally. If someone parks their car legally and then hits yours, the person who caused the accident is generally responsible.

Who is going to pay for the damage?

Accident Coverage: If you have accident coverage on your car, it will probably pay to fix it while it is stopped. This is true even if the other driver caused the crash; collision insurance covers damage to your own car.
Insurance for the At-Fault Driver: If you can find the person who hit your car and they have insurance, their insurance should pay for the damage. This is where the driver who was at fault’s liability insurance comes in.
People who do not have insurance: What if the person who hit your parked car does not have insurance? If you have uninsured driver coverage, it might help pay for the repairs. You might have to use your accident insurance or, in some cases, pay for it yourself if you do not have this coverage.

Will Your Insurance Rates Increase?

A common concern after an accident is whether your insurance premium will go up, even if you weren’t at fault. The short answer is: it depends on several factors.

The Impact of Filing a Claim

Insurance companies generally raise your rates after a claim because they see you as a higher risk. This applies to both at-fault and not-at-fault claims, though the increase may be less severe if you aren’t at fault.

Collision vs. Liability: If the accident involves another party who is at fault, and you file a claim with their insurer, your own rates are less likely to rise. However, if you file a claim under your own collision coverage, even if the accident wasn’t your fault, it may lead to higher premiums.
Frequency of Claims: If you’ve filed multiple claims in the past, your insurer may view you as a more frequent risk, which could result in higher premiums.

Factors That Determine Rate Increases

Several things can affect whether or not your rates will go up:

Your Insurance Past: If you have a past of making a lot of claims, your insurance rates will probably go up over time. This is very important if the insurance company thinks you are a “high-risk” driver.
Fault in the Accident: If you were not at fault in an accident, your insurance company probably will not raise your rates. However, this is not a guaranteed outcome. If you make a claim under your collision insurance, your rates may still go up, especially if the damage is small or the other driver does not have insurance.
Laws in each state: Some states have “no-fault” insurance laws, which mean that each driver’s insurance pays for their own damages no matter who caused the crash. If you file a claim on your own insurance in these states, your rates might not go up, even if the other driver was at fault.
First-party vs. third-party What they say: It is less possible that it will affect your rates if you file a claim with the other driver’s insurance (third-party). If you file under your own policy, on the other hand (first-party), your rates may go up.

What If the Accident Is Minor?

In cases where the damage to your car is minor, it’s essential to weigh the benefits of filing a claim. Small accidents may seem like they’re not worth involving your insurance company. Filing a claim for minor damage could lead to an increase in your premiums, even if you weren’t at fault.

Deductibles: If the damage does not surpass your deductible, it may be more cost-effective to cover the repairs yourself instead of submitting a claim. This will help you avoid the risk of your insurance rates going up.
Cost-Benefit Analysis: If the cost of repairs is close to or below your deductible, you should consider whether filing a claim is worth the potential increase in premiums. Often, covering minor repairs yourself will result in long-term financial savings.

Steps to Take After Your Parked Car Is Hit

If someone hits your parked car, you need to move quickly and take a few important steps to protect your rights:

Record the Event: As soon as you see the damage, take shots of the scene, the damage to your car, and anything else that is important. This proof will be very important when you file a claim or work with the police.
File a Police Report: You may need to file a police report if the damage is serious or if you cannot find the other car. It helps your cause and can speed up the claims process to have an official report.
Share details: If you can find out who the other driver is, share details about your insurance. If the person who hit your car leaves a note, make sure it has their insurance information and how to reach them.

Tell Your Insurance Company: Tell your insurance company about the accident as soon as you can. Your insurance company will help you file a claim and tell you whether you should use your own policy or the other driver’s policy.

Preventing Rate Increases After an Accident

While you can’t completely avoid a rate increase after an accident, there are steps you can take to minimize the impact:

Do not make claims based on fault: To prove you were not at fault in the event, make sure you have enough proof. This will keep you from making claims that are not necessary, which could cause your prices to go up.
Look for Better Rates: If your insurance rates do go up, it is a good idea to compare them to other companies. Getting insurance from a different company may help you get a better deal because rates can change a lot.
Improve Your Risk Profile: If you want to lower your general risk and, as a result, your premiums, think about adding security features to your car, like cameras or alarms. Another way to keep crashes from happening is to park in well-lit, safe places.

Alternatives to Insurance Coverage for Parked Car Accidents

While car insurance is the most common way to cover damages from a parked car accident, there are other options worth considering:

Personal Injury Protection (PIP): Though PIP usually covers medical expenses, some policies may also offer coverage for car damages, even in cases where your car is parked.
Other Coverage Options: If you’re concerned about accidents involving your parked car, consider comprehensive coverage, which can also cover damages from incidents that aren’t accidents—such as vandalism or severe weather.

Conclusion

It may seem like your insurance rates will go up as soon as someone hits your parked car, but the truth is more complicated. If the crash was your fault, the other driver’s insurance is in effect, and you file under your own policy, your rates may go up. If not, they may not go up at all.

Understanding the fundamentals of car insurance, taking the initiative to manage claims, and considering the potential long-term expenses of filing minor claims can help you manage the aftermath of an accident more effectively. If your premiums do go up, do not be afraid to look for better rates or ways to lower your total risk.

Finally, fully comprehending your insurance plan and how claims work can assist you in making smart choices and avoiding future price increases that are more than necessary.