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: Feb 26, 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: Feb 26, 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.
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.
Over 10% of drivers 🚘nationwide are uninsured. If they cause a crash with you, will your policy have you covered? https://t.co/27f1xf131D can help you answer that question🤔 and find the coverage you need. Check out all the details here👉: https://t.co/Dv3KUp2TaO🚘 pic.twitter.com/3TqlWnzFgw
— 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.
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.