Does damage to a parked car cause insurance rate increases?
Damage to a parked car does cause insurance rate increases if you have to file an uninsured motorist claim. Expect insurance to go up between 5% and 20% if someone hits your parked car and drives off or doesn't have insurance. Below, we'll explain what to do if your car was hit while parked.
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Justin Wright
Licensed Insurance Agent
Justin Wright has been a licensed insurance broker for over 9 years. After graduating from Southeastern Seminary with a Masters in Philosophy, Justin started his career as a professor, teaching Philosophy and Ethics. Later, Justin obtained both his Property & Casualty license and his Life and Health license and began working for State Farm and Allstate. In 2020, Justin began working as an i...
Licensed Insurance Agent
UPDATED: Apr 8, 2024
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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: Apr 8, 2024
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
- Uninsured/underinsured motorist coverage pays for hit-and-run damages
- Filing a UM claim may cause rates to go up by 5% to 20%
- If you locate the at-fault driver, their insurance should cover your damages
Damage to a parked car can cause insurance rate increases if you have to file a claim on your uninsured/underinsured (UM/UIM) motorist coverage. However, this only applies if it was a hit-and-run or the other driver has inadequate or no insurance. The at-fault driver’s liability auto insurance will pay your damages if you locate them.
Keep reading to learn when your auto insurance rates go up after an accident, what to do if your car gets hit while parked, and whose insurance to call after an accident.
Read More: Hitting a Parked Car, Auto Insurance Implications
How Someone Hitting Your Parked Car Makes Your Auto Insurance Go Up
If someone hits your parked car, your insurance rates may increase if you file a claim. But the best auto insurance companies with solid reputations will work with you to avoid higher rates.
They will run an investigation to determine if your car was actually hit by a driver who fled the scene and pays for damages minus your deductible. This is a good reason to compare auto insurance companies before buying a policy.
What to Do if Someone Hits Your Parked Vehicle
If you find damage to your car after parking it on the street or in a parking lot, you will naturally want your car fixed without having to pay the repair costs yourself. There are several ways this situation could play out:
- The driver left a note. Sometimes, the person responsible for the damage will leave a note. If the other driver is willing to accept responsibility, they usually have adequate insurance coverage. In that case, their insurance will pay, and you don’t have to file a claim with yours.
- The driver didn’t leave a note but you find them. Perhaps a witness got a license plate, or the police are able to find the responsible party. If that driver has insurance, it will cover the damage. If not, you must use your uninsured motorist coverage, which will raise your rates.
- The driver didn’t leave a note and you can’t find them. Your only options are to pay out of pocket or file an auto insurance claim on your uninsured motorist coverage.
The impact on your insurance rates will vary depending in part on whether the other driver takes responsibility or you can prove that driver is at fault.
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The Best Auto Insurance Coverage If Your Parked Vehicle Gets Hit
Uninsured and underinsured motorist coverage (UIM) is a type of auto insurance that pays when your car is hit by an uninsured or hit-and-run driver.
While the person who hit your parked car might leave contact information, they might not be insured or have the means to pay for your damage. So, that's where uninsured motorist coverage comes in.Daniel Walker Licensed Auto Insurance Agent
Read More: Does car insurance cover a hit-and-run?
Take a look at the table below to compare the average monthly cost of uninsured motorist coverage by state:
State | Rates |
---|---|
Alaska | $30 |
Alabama | $25 |
Arkansas | $28 |
Arizona | $32 |
California | $35 |
Colorado | $30 |
Connecticut | $35 |
District of Columbia | $40 |
Delaware | $33 |
Florida | $38 |
Georgia | $32 |
Hawaii | $35 |
Iowa | $28 |
Idaho | $30 |
Illinois | $33 |
Indiana | $28 |
Kansas | $30 |
Kentucky | $28 |
Louisiana | $40 |
Massachusetts | $35 |
Maryland | $35 |
Maine | $28 |
Michigan | $40 |
Minnesota | $32 |
Missouri | $30 |
Mississippi | $25 |
Montana | $28 |
North Carolina | $33 |
North Dakota | $28 |
Nebraska | $30 |
New Hampshire | $28 |
New Jersey | $35 |
New Mexico | $32 |
Nevada | $35 |
New York | $38 |
Ohio | $30 |
Oklahoma | $28 |
Oregon | $35 |
Pennsylvania | $33 |
Rhode Island | $35 |
South Carolina | $32 |
South Dakota | $28 |
Tennessee | $30 |
Texas | $38 |
Utah | $32 |
Virginia | $33 |
Vermont | $28 |
Washington | $35 |
Wisconsin | $30 |
West Virginia | $33 |
Wyoming | $28 |
UIM is a good coverage to carry, and some states require this kind of auto insurance coverage for all drivers. There are three basic types of UIM insurance:
- Underinsured motorist: If the driver who hit your car has insurance, but the limits do not allow it to fully pay for the damage they cause, your protection will pick up the difference.
- Uninsured motorist: There is also the possibility that the driver who hit you has no insurance. This could leave you with very costly repairs that you would have to pay out of pocket. Uninsured motorist coverage will take care of the cost of the damage.
- Uninsured motorist property damage: Uninsured motorist property damage coverage protects you if a driver hits your car and pushes it into another vehicle, building, or other property, causing damage to that property. If the driver has no coverage, the third parties may come after you.
If an uninsured driver hits your car and you file a UIM claim, your insurance will go up. However, you can maintain low auto insurance rates by paying your policy in full and bundling auto and home policies with the same company.
State-Specific Guidelines and Impact on Insurance Rates: A Focus on California
California is known for its stringent insurance laws and regulations, which can significantly impact how insurance rates are adjusted following incidents involving parked cars. In the event that your parked car is hit, understanding the specific implications within California can help you navigate the situation more effectively.
California’s Proposition 103 and Its Impact on Insurance Rates:
Under California’s Proposition 103, insurance companies are required to base rate changes on factors primarily related to your driving record, the amount of driving you do, and your years of driving experience. This means that if someone hits your parked car, your insurance rate might not necessarily go up, especially if you’re not at fault. However, specific circumstances, such as hit-and-run incidents or being hit by an uninsured driver, can still influence your rates due to the complexities of filing a claim.
Scenarios and Their Impact on Your Insurance in California:
- My car was hit while parked; will my insurance go up in California?
- If you’re not at fault, California law aims to protect you from direct rate increases due to claims for incidents that are beyond your control, such as your car being hit while parked.
- Hit-and-Run Claims:
- In cases of hit-and-run, you may need to rely on your collision or uninsured motorist coverage. While Proposition 103 protects drivers from unfair rate increases, filing a claim under these coverages could lead to an indirect rate adjustment during renewal, especially if the insurer categorizes you as a higher risk due to the incident.
- Uninsured Driver Incidents:
- Similar to hit-and-run claims, if an uninsured driver hits your parked car and you file a claim under your uninsured motorist coverage, there may be a rate adjustment. However, California insurers are encouraged to consider the circumstances of the claim and your overall risk profile before making rate changes.
Preventative Measures and Parking Tips in California:
Taking proactive steps can minimize the risk of your parked car being hit. In California, consider parking in well-lit areas, utilizing secure parking facilities when available, and investing in security cameras or dash cams that can provide evidence in the event of an incident. These measures can not only deter potential hit-and-runs but also strengthen your position when filing a claim.
Navigating Insurance Claims for Parked Car Incidents in California:
- Documentation is Key: Immediately document the scene with photos, note any potential witnesses, and file a police report, especially for hit-and-run cases.
- File Promptly: Contact your insurance company as soon as possible to report the incident. Provide all collected evidence and documentation to support your claim.
- Understand Your Coverage: Review your policy to understand the coverages you have in place, such as collision, comprehensive, and uninsured motorist coverage, and how they apply to your situation.
By familiarizing yourself with California’s specific guidelines and preparing accordingly, you can mitigate the impact on your insurance rates and navigate the aftermath of a parked car incident more smoothly.
Other Car Insurance Coverages to Consider
Every state has minimum auto insurance requirements to drive legally. However, the basic liability minimum in your state will only pay for damages sustained by other drivers in the event of an at-fault accident. It will not cover your injuries or property damage.
Full coverage car insurance will pay for damages caused by an accident. In addition, most loan providers require that you have full coverage insurance to finance a car. It includes collision and comprehensive coverage, which will also pay for damages after a natural disaster, theft, or vandalism.
Auto Insurance After an Accident: What You Need to Know
Accidents can happen even when you’re not behind the wheel, and there is always the potential for a hit-and-run collision when your car is left parked in a public area. Carrying the right car insurance can stop your rates from going up after someone hits your car.
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— AutoInsurance.org (@AutoInsurance) October 9, 2023
Shop around for full coverage auto insurance with collision, comprehensive, and uninsured/underinsured motorist coverage to pay for damages in the event your parked car is hit.
Frequently Asked Questions
If someone hits my car, will my auto insurance premium increase?
Whether or not your auto insurance premium increases after someone hits your car depends on several factors. If the accident was deemed the other driver’s fault and their insurance company covers the damages, it generally should not affect your insurance premium. However, if you file a claim with your own insurance company, they may consider it an at-fault accident and adjust your premium accordingly.
Will my deductible apply if someone hits my car?
If someone hits your car and you decide to file a claim with your insurance company, your deductible will likely apply. The deductible is the amount you’re responsible for paying out of pocket before your insurance coverage kicks in. Be sure to check your policy details to understand your specific deductible amount and how it applies to your situation.
Should I report the accident to my insurance company if the damages are minor and the other driver offers to pay out of pocket?
It’s generally recommended to report any accident to your insurance company, even if the damages seem minor and the other driver offers to pay out of pocket. Reporting the accident ensures that you have a record of the incident and allows your insurance company to guide you through the claims process if necessary. In some cases, seemingly minor damages can later reveal more significant issues, and having a record of the accident can protect your interests.
Will my insurance rates go up if I’m not at fault for the accident?
If you’re not at fault for the accident and the other driver’s insurance company covers the damages, it typically should not result in an increase in your insurance rates. However, insurance companies use various factors to determine premiums, so it’s always best to consult with your insurance provider to understand how they handle specific situations.
Will my insurance company drop me if I file a claim for someone hitting my car?
Generally, filing a claim for someone hitting your car should not lead to your insurance company dropping you from coverage. However, it’s essential to review the terms and conditions of your policy to understand any potential consequences. Frequent claims or involvement in multiple accidents could increase the likelihood of your insurance company considering you a higher risk, which may affect your policy renewal or premium rates in the future.
Whose insurance do I call after an accident?
While it’s vital to inform your insurer if you get into an accident, you can file a claim with the other driver’s insurance if they caused the accident.
What should I do if someone hits my car and drives off?
Report your accident to the police and your auto insurance company. Then, file a claim under your uninsured motorist policy to pay for damages. If police later locate the hit-and-run driver, your insurance may seek reimbursement from their provider, meaning your rates may not go up.
Does a hit-and-run affect insurance?
Yes, a hit-and-run will impact your auto insurance rates if you file an uninsured motorist claim.
Will a third-party claim affect my insurance?
Generally, filing a third-party insurance claim won’t affect your rates.
Will my insurance increase after a claim?
Yes, since your provider has to pay out a claim, they’ll likely increase your rates.
If someone hits my parked car, will my insurance rates automatically increase?
Whether your insurance rates will increase after someone hits your parked car depends on several factors, including your insurance policy, the circumstances of the incident, and whether the at-fault driver is identified. Generally, if the at-fault driver is identified and their insurance covers the damages, your rates should not increase.
How does a hit-and-run incident affect my insurance rates?
A hit-and-run insurance increase can occur if you file a claim through your collision or uninsured motorist coverage. The extent of the rate increase depends on your insurer’s policies and your claim history. Reporting the incident to the police and your insurer promptly can help with the claims process.
Will my insurance go up if I’m hit by an uninsured driver?
If an uninsured driver hits you and you file a claim under your uninsured motorist coverage, it could lead to an increase in your insurance rates, depending on your insurer’s policies and the specifics of the claim.
Does insurance go up more for hitting a parked car versus being hit while parked?
Generally, being at fault for an accident (including hitting a parked car) is more likely to result in higher insurance rate increases compared to incidents where you are not at fault, such as your parked car being hit. The increase is based on the perceived risk and responsibility associated with the claim.
If someone hits my car in a parking lot, does it affect my insurance rates?
If someone hits your car in a parking lot and is at fault, their insurance should cover the damages, which typically would not affect your insurance rates. However, if you have to file a claim through your insurance due to a hit-and-run or an uninsured driver, there may be an impact on your rates.
How much does insurance typically go up after an accident with a parked car?
The increase in insurance rates after an accident involving a parked car can vary widely based on your insurance provider, your driving history, and the details of the incident. On average, rates can increase by 5% to 20%, but it’s important to consult your insurance policy or speak with your agent for specific figures.
If another driver damages my car and drives off, how does that affect my insurance?
In cases of hit-and-run where the other driver damages your car and leaves the scene, your insurance may increase if you file a claim under your collision or uninsured motorist coverage. The increase depends on your insurer’s policies and the details of the incident.
If someone’s insurance pays for damages to my car, will my insurance still go up?
If the at-fault party’s insurance company pays for the damages to your car, your insurance rates generally should not increase. Your rates are more likely to be affected when you file a claim through your own insurance.
How much does car insurance go up after an accident, on average?
The amount car insurance goes up after an accident varies based on many factors, including the severity of the accident, your driving history, and your insurance provider. On average, you might see an increase of 5% to 20%, but it’s important to consult your insurance policy or speak with your agent for specifics related to your situation.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Justin Wright
Licensed Insurance Agent
Justin Wright has been a licensed insurance broker for over 9 years. After graduating from Southeastern Seminary with a Masters in Philosophy, Justin started his career as a professor, teaching Philosophy and Ethics. Later, Justin obtained both his Property & Casualty license and his Life and Health license and began working for State Farm and Allstate. In 2020, Justin began working as an i...
Licensed 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.