Navigating Parking Lot Accidents: Your Car Insurance Explained

Parking lots are a common backdrop for minor fender benders, but even a low-speed collision can lead to frustrating damage, rising premiums, and confusion about who's at fault. Do you know how your insurance protects you in these situations?

While parking lot accidents might seem distinct from those on public roads, your car insurance treats them largely the same.

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The basic rules of the road, including right-of-way, still apply. Here's a breakdown of what you need to know about insurance coverage for parking lot accidents in Canada.

Who is at fault in a parking lot accident?

Determining fault in a parking lot accident is usually trickier than on a main road, since there are multiple moving vehicles, pedestrians, and tight spaces. However, insurance companies in Canada rely on provincial "Fault Determination Rules" to assign responsibility. It's a common misconception that all parking lot accidents are 50/50 fault – this is rarely the case.

Here are some common parking lot accident scenarios and how fault is typically assigned:

• Hitting a legally parked car: If you hit a stationary, legally parked vehicle, you will almost always be considered 100% at fault. This includes backing into a parked car or opening your door into another vehicle.
• Backing out of a spot into a moving vehicle: When you're pulling out of a parking spot, you must yield to vehicles already in the feeder lane (the lane between rows of parked cars). If you back out and hit a car in the feeder lane, you'll likely be at fault.
• Two vehicles backing out simultaneously: This is one of the few scenarios where fault is often split 50/50. Since both drivers are responsible for their own movement and neither has the clear right-of-way, both typically share responsibility.
• Colliding in a thoroughfare (main lane): Vehicles in the main lanes of a parking lot (thoroughfares) generally have the right-of-way over vehicles entering from feeder lanes or exiting parking spots. If you're entering a thoroughfare and collide with a vehicle already in it, you're likely at fault.
• Competing for a parking spot: When two cars are vying for the same spot and collide, fault can be shared. Factors like who had the right-of-way, impact points, and how far each vehicle was into the parking spot will be considered.
• Hitting a stationary object (curb, pole, shopping cart): If you hit a stationary object like a curb, light pole, or even a shopping cart, you will be 100% at fault.
• Hit and run: If your legally parked car is hit and the other driver leaves the scene without providing information, this is a hit and run. You'll generally need Collision or All Perils coverage (or Comprehensive in Alberta) to cover the damage to your vehicle. Reporting to the police within 24 hours is usually required for your insurer to consider it a not-at-fault accident.
• Hitting a pedestrian or cyclist: Drivers are expected to exercise extreme caution around pedestrians and cyclists in parking lots. If you hit a pedestrian or cyclist, you will often be found at fault, though specific circumstances can influence this.

How your Canadian car insurance covers parking lot accidents

Your car insurance policy will respond to parking lot accidents in the same way it would for any other collision. Key coverages include:

• Direct compensation/property damage (DCPD): In provinces that have a no-fault or some sort of no-fault system (Quebec, Ontario, Manitoba, Saskatchewan, Alberta in 2027, British Columbia, New Brunswick, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island), this coverage pays for damages to your vehicle if you are not at fault, regardless of who caused the accident. You deal directly with your own insurer. Note that DCPD is now optional in Ontario.
• Collision or upset coverage: This optional coverage pays for damage to your own vehicle resulting from a collision, regardless of who is at fault. If you are found at fault for a parking lot accident, this is the coverage that will typically cover your vehicle's repairs, after your deductible.
• Liability coverage: This mandatory coverage protects you if you are found legally responsible for damaging another person's property (like their vehicle) or causing injury to them.
• Comprehensive coverage: This optional coverage protects your vehicle from non-collision incidents, such as theft, vandalism, fire, or damage from falling objects. While not directly for collision, it's important for hit-and-run scenarios where the other driver isn't identified.
• Accident forgiveness: If you have this endorsement on your policy, your first at-fault accident (including a parking lot accident) typically won't impact your premium at renewal.

How can car owners save on their insurance with Western?

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• Bundle and save: Combine your car and home insurance with Western Financial Group and you save up to 10%.
• Multiple quotes to suit your needs: Western is a national insurance broker that partners with Canada’s leading insurers. We’ll get you multiple car insurance quotes to suit your needs and to help you save money.

What to do after a parking lot accident

If you find yourself in a parking lot accident, follow these steps:

1. Ensure safety: First and foremost, check for injuries to yourself or anyone else involved. If someone is hurt, call 911 immediately.
2. Move to safety: If your vehicle is driveable and it's safe to do so, move it out of the way of traffic to prevent further incidents. Turn on your hazard lights.
3. Exchange information: Get the following details from all involved drivers:

○ Name, address, and phone number

○ Driver's license number

○ License plate number

○ Insurance company and policy number

1. Gather evidence:

○ Take photos of the vehicles involved, the damage, the surrounding area (e.g., parking lines, signs, road conditions), and any relevant landmarks.

○ Note the date, time, and exact location of the accident.

○ Look for witnesses and get their contact information.

○ Check for security cameras in the parking lot that may have captured the incident.

1. Report to police (if needed): While minor parking lot accidents often don't require police involvement, you generally must report the accident to the police if:

○ Anyone is injured.

○ You suspect impaired driving or other criminal activity.

○ The combined damage to all vehicles exceeds a certain threshold (this varies by province, but is commonly $2,000 in Ontario, Alberta, and Nova Scotia, and can be higher in other provinces).

○ It's a hit and run where the other driver cannot be identified.

1. Contact your insurance provider: Contact your insurance broker or company as soon as possible, ideally within 24 hours. Provide them with all the details and evidence you've collected. They will guide you through the claims process and determine fault based on the specific circumstances and provincial rules.

Best ways to prevent parking lot accidents

Parking lots, despite low speeds, are high-risk environments. Stay vigilant and practice these tips to minimize your chances of an accident:

• Slow down: Always drive slowly and cautiously in parking lots.
• Eliminate distractions: Put away your phone and avoid other distractions. Your full attention is needed.
• Be aware of your surroundings: Look out for pedestrians (especially children), shopping carts, other vehicles, and stationary objects.
• Use turn signals: Clearly indicate your intentions when turning or changing lanes.
• Back in: If possible, back into parking spots. This provides a better field of vision when you're leaving.
• Obey Signs: Follow all stop signs, yield signs, and directional arrows.
• Yield the right-of-way: Remember that vehicles in main thoroughfares and those already in lanes generally have the right-of-way.
• Park strategically: Consider parking further away from entrances or in less congested areas to reduce exposure to traffic.
• Use your mirrors and shoulder check: Don't rely solely on backup cameras. Always use your mirrors and do a shoulder check before backing up or changing lanes.

Parking lot accidents happen all the time, which is why you should take a moment to understand your insurance coverage and know what to do in the event of a collision. Always review your car insurance policy with your broker to ensure you have the right coverage for your needs.

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FAQs about parking lot accidents

Will a parking lot accident always affect my insurance premiums?

Not necessarily. If you are found not at fault for the accident, your premiums are less likely to be impacted, especially in "no-fault" provinces with DCPD. However, if you are found at fault, your premiums may increase upon renewal. Having "Accident Forgiveness" on your policy can also protect your rates for your first at-fault accident.

Do I need to call the police for a parking lot fender bender?

It depends on the severity and specific provincial requirements. Generally, you don't need to call the police for minor damage with no injuries. However, you must report to the police if there are injuries, if you suspect impaired driving, if the combined damage exceeds a provincial threshold (e.g., $2,000), or if it's a hit and run where the other driver fled the scene. It's always best to err on the side of caution and report if you're unsure.

What if the other driver doesn't have insurance or refuses to provide information?

If the other driver is uninsured, your own uninsured motorist coverage (which is mandatory in most Canadian provinces) would typically cover your bodily injuries. For damage to your vehicle, you would need Collision or All Perils coverage on your own policy. If they refuse to provide information, document everything, take photos, and immediately report the incident to your insurance provider and the police.

How is fault determined in a car accident if there are no witnesses or security footage?

In cases without witnesses or footage, insurance companies will rely on the physical evidence (e.g., location of damage on both vehicles), the laws of physics, and the Fault Determination Rules of your province. Both drivers' statements will be taken into account, and if conflicting, fault may still be assigned based on the most probable scenario according to these rules. In some complex cases, fault might be split or even remain undetermined if there's truly no clear evidence.

Should I get an estimate for the damage in a car accident before contacting my insurance?

A: While you can get an estimate, it's best to contact your insurance provider first. We can guide you through the claims process, which usually involves sending an appraiser or directing you to a preferred repair shop for an estimate. Getting an estimate yourself beforehand could cause delays or extra steps.