Will My Car Insurance Go Up If I Hit A Parked Car?

Key Points:

• Your car insurance premium will likely increase if you hit a parked car.
• If you’re caught after a hit-and-run, you could get a fine and even time in jail.
• Choosing a car insurance company that offers accident forgiveness can help you avoid a rate increase if you only have one accident within a specified time frame.

Accidents are always a bummer, but they’re also just that: accidents. If you accidentally hit a parked car, there’s no need to panic. In this article, we’ll walk you through what to do after you hit a parked car and discuss how this type of collision could affect your insurance rate.

If your rates do go up, it never hurts to look for cheaper coverage. Read our review of the best car insurance companies and compare free quotes from at least a few to find the best option for you.

What Should I Do If I Hit A Parked Car?

How you should proceed after hitting a parked car depends on the circumstances. The first thing you should do is check to see if the owner of the car is around and if you damaged the other vehicle. If you’re driving slowly enough, there’s a chance you didn’t.

However, car bumpers are designed to crumple. This is a safety feature that reduces impact force on passengers in the event of a full-speed collision. It’s really easy to damage another car’s bumper even at low speeds. The rest of the car can be easily scratched, scuffed, and dented as well.

If you damaged the other car, the worst thing you can do is drive away and hope no one saw you. Hit-and-run accidents can result in steep fines and even jail time. Instead, follow these steps:

• Check to see if anyone is in the other vehicle and if they’re injured.
• Call emergency services if necessary. In many states, you’re required to notify the police after a car accident if someone is injured or property damages exceed a certain amount.
• If the vehicle is empty, stay and look for the owner.
• If you can’t find the owner, leave a note on the windshield with your name and contact information.
• If you do find the owner, give them your name, phone number, insurance provider, and policy number. Be sure to get the vehicle owner’s name and phone number as well as the make, model, and year of the vehicle you damaged. If you don’t have car insurance, leave your contact information at the very least.
• Take pictures of the damages and collect contact info from any witnesses.
• If there are any security cameras around, ask the owners for a copy of the footage–particularly if you plan to make the case that the accident was not your fault. 

When you hit a parked car, you’re usually considered at fault. An exception may be if the car you ran into was parked illegally, in which case, you should document that fact. If the other car was indeed parked illegally, you may end up filing an insurance claim against the person whose car you hit.

If you’re the at-fault driver, your property damage liability insurance will cover the other car’s repairs. You may try to settle the issue without contacting insurers–by paying for the vehicle repairs out of your own pocket. However, if the other driver insists on involving insurance companies, there’s little you can do to prevent it. Better to contact your insurance company before they do.

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I Hit A Parked Car–Will My Insurance Go Up?

Any time you file a claim with your insurance company, there’s a chance your rate will increase. When you hit a parked car, your insurance company treats it the same as a road collision. Most likely, you’ll be found at fault and your car insurance rate will go up.

Opt For An Accident Forgiveness Policy

Many providers offer accident forgiveness car insurance policies, which ensure that your rate won’t go up if you only have one single accident within a given time frame (usually between three and five years). While some companies provide accident forgiveness for free, others sell it as a policy add-on.

Geico, USAA, and Progressive all offer accident forgiveness. If you’re not sure if you have accident forgiveness on your policy, contact your provider to find out. If you don’t have it already–and your insurer offers it–you should be able to add it in just minutes. 

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Do I Have To Pay A Deductible If I Hit A Parked Car?

Whether you pay a deductible after an accident depends on the type of claim you file. When you hit a parked car, your liability auto insurance covers any damage to the other vehicle as well as any medical expenses if passengers in the other car were injured. Liability coverage generally doesn’t have a deductible.

If your car was damaged as well, you’ll need to file an insurance claim through your collision coverage, which does have a deductible. If you don’t have this type of coverage (or don’t want to pay the deductible for it), you’ll need to pay for your car’s repairs out of pocket.

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If I Hit a Parked Car, Will My Insurance Go Up?: Our Take

If you file a claim, you can reasonably expect your car insurance premium to increase–unless you have accident forgiveness on your policy and haven’t had an accident within the past three to five years. You could also try to avoid a premium increase by paying for the damages out of your own pocket–as long as the owner of the other vehicle is amenable.

Our Recommendations For Car Insurance

If your car insurance premium recently went up for any reason, it might be a good idea to shop around and see if you can find a better rate elsewhere.  Geico and USAA are two good alternatives options to consider if you’re looking for low rates on good coverage.

Geico: Best For Basic Coverage

Geico is the third largest auto insurer on the market, and it’s known especially for its below-average rates and excellent discounts. The company offers accident forgiveness for drivers 21 or older who’ve been accident-free for five years or more. 

A clean driving record can also save you up to 22 percent on your premium with Geico, as it qualifies you for the Good Driver discount. You can get additional savings for doing things such as taking a defensive driving course and using your seat belt.

Read our full Geico review.

USAA: Best For Military Members

USAA was founded as a mutual self-insurance collective in 1922. The company was started by military officers, and it provides insurance and banking products exclusively for service members, veterans, and their spouses and children.

If you’re a USAA policyholder and you hit a parked car, your insurance premium may not go up. USAA customers who’ve been accident-free for five years won’t see their premiums increase after one at-fault accident. This feature is free for drivers who qualify.

Learn more in our full USAA review.

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FAQ: Does Auto Insurance Go Up After You Hit A Parked Car?

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How We Rate Auto Insurers

Our review team extensively researches auto insurance providers to deliver informed and unbiased assessments of leading companies. We evaluate several key rating factors that are important to consumers to determine which providers are the best in the industry:

• Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
• Availability: Insurance companies that offer wider availability to consumers in terms of state availability and few eligibility requirements are more likely to meet consumer needs.
• Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
• Pricing: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
• Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer a smooth experience.
• Technology: Providers with an online quote tool, easy-to-use claims app and a usage-based insurance app score best in this category.

*Data accurate at time of publication.

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