Someone reverses directly into your car in a busy parking lot, leaving a considerable dent in your rear bumper and aggravating your chronic back pain. But do insurance companies cover parking lot accidents? Yes, generally insurance companies do cover parking lot accidents. However, payouts are based on fault allocation, specific policy terms, and the circumstances of the accident.
This blog is a guide for navigating insurance coverage after a parking lot accident. We’ll discuss comparative negligence laws, evidence collection methods, types of coverage, how the crash will affect your premium, compensation, insurance tactics, and when to call a car accident attorney.
What Is a Parking Lot Accident?
A parking lot accident is any collision, pedestrian impact, or property damage that occurs in commercial or private lots. Parking lots are considered private property in California. However, traffic laws still apply, and drivers still have a duty of care. The National Safety Council’s (NSC) statistics show an alarming pattern of more than 50,000 parking lot crashes in the USA per year. The high crash rate is believed to result from more people engaging with their devices while driving.
With over 60,000 injuries and 500 deaths, the NSC states that 1 in 5 crashes happen in parking lots. From fender benders and door dings to multi-vehicle collisions and pedestrian injuries, a parking lot accident in California can be limited to property damage. But there are also many scenarios where victims sustain serious injuries. Proving a parking lot accident requires victims to establish a clear breach of the at-fault driver’s duty of care.
Common Causes of Parking Lot Accidents
Most parking lot accidents result from predictable, preventable driving behavior. Many drivers forget to follow basic safety guidelines in confined spaces, leading to crashes that could have been avoided with greater care. Parking lot accident liability is usually assigned to the negligent driver or shared by multiple people who contributed to the crash. The most common causes of parking lot accidents include:
- Backing out without checking blind spots
- Distracted driving such as phone use, GPS checking, or eating while driving
- Failure to yield at entrances, internal lanes, and pedestrian crossings
- Speeding through parking lots despite low speed limits
- Low visibility due to poor lighting
- Hazardous parking lot conditions such as missing signage or uneven pavement
Who Is At Fault in a Parking Lot Accident?
In parking lot accidents, fault is more complex than on public roads because many incidents happen on private property. Police aren’t always required for accidents on private property unless there are serious injuries, fatalities, or property damage. That means evidence such as photos, CCTV footage, dashcam recordings, and witness statements is critical in determining who is at fault in a parking lot accident.
In California, the comparative negligence rule assigns fault. Multiple parties can share fault depending on their contribution to the crash. Even if you are assigned a share of comparative fault for a California parking lot accident, you can still recover damages. Nonetheless, your compensation will be reduced by your percentage of fault. Let’s look at some potential situations where comparative negligence may apply.
- Two cars backing out simultaneously reverse into each other: fault is typically shared.
- One car reverses into a moving vehicle: the reversing driver is usually at fault. In some situations, the moving driver can share fault for trying to push past the reversing driver.
- Rear-end collision in traffic waiting for a parking spot: the following driver is often assigned the majority of the fault, unless the leading vehicle’s brake lights were faulty.
- A moving vehicle hits a legally parked car: the moving driver is at fault.
- Vehicle hits a pedestrian: the driver is usually at fault because pedestrians have the right of way, unless the pedestrian acted unpredictably or entered a crosswalk while the vehicle was already moving.
Who Could Be Liable in a Parking Lot Accident?
Under California’s comparative negligence rule, multiple parties can share responsibility for a parking lot accident. However, liability is not limited to the drivers. It may extend to other parties related to the accident, depending on how the accident occurred.
The At-Fault Driver
The at-fault driver is typically the primary liable party in more parking lot accident cases. Liability determinations are based on negligence, which can include distracted driving, failure to yield, speeding, and reversing errors. The at-fault driver’s auto liability insurance is the first source of compensation for victims of parking lot accidents in California. Proof of reckless or negligent driving is the best way to prove the at-fault driver’s liability.
The Parking Lot Owner or Manager
When determining who is responsible for a parking lot accident, premises liability is an important factor. Under California Civil Code Section 1714, property owners are responsible for injuries sustained by others as a result of a lack of “ordinary care or skill” in the management of their property. Property owners and their appointed managers must maintain reasonably safe conditions. Common unsafe conditions that lead to accidents include poor lighting, missing signage, potholes, and unclear lane markings.
A Third Party
In some cases, a third party can be liable for a parking lot accident. While rare, there are situations where defective equipment causes accidents. Brake failure, faulty backup cameras, sensor malfunctions, and power steering issues can result in collisions in tight spaces, such as parking lots. If a vehicle malfunctions, it falls under product liability, which holds the manufacturer responsible for failure to ensure the safety of their products.
What Types of Insurance Cover Parking Lot Accidents?
Insurance companies typically cover parking lot accidents. The same coverage that you have on a public road should apply in private parking lots. The exact coverage amount depends on your specific policy and how shared liability is handled if you are partially at fault.
Liability Coverage
Liability coverage, which is required in California, covers injuries and property damage if you are legally responsible for an accident. Minimum coverage is $15,000 per injured person, $30,000 per accident, and $5,000 for property damage. Liability coverage can protect you from the significant financial strain you could experience if required to pay damages out of pocket for parking lot accidents.
Collision Coverage
Collision coverage is an optional auto insurance add-on that provides payment for damage to your own vehicle regardless of who is at fault. When fault is disputed, or the other driver is uninsured, collision coverage can help you repair your vehicle after a parking lot accident.
Uninsured/Underinsured Motorist (UM/UIM) Coverage
UM and UIM coverage can be highly beneficial for people involved in parking lot collisions where the at-fault driver doesn’t have insurance, or their insurance is inadequate. Parking lot accident insurance claims filed under UM and UIM coverage are a vital source of funds for injured crash victims with medical bills and lost wages.
Medical Payments Coverage (MedPay)
MedPay coverage provides funds for medical expenses regardless of who caused the parking lot accident. This coverage allows crash victims to seek immediate medical treatment after an accident. Creating a medical record of treatment as soon as possible is vital for any lawsuits that may follow the crash.
Comprehensive Coverage
Comprehensive coverage pays for non-collision incidents such as theft, vandalism, and weather damage, but it doesn’t cover collision-related damage. While not particularly useful for parking lot accidents, it’s important coverage that can help you if your vehicle is damaged in other ways in a parking lot.
Will My Insurance Premium Go up After a Parking Lot Accident?
In California, your percentage of fault dictates whether your insurance rates increase after an accident. Under Proposition 103, insurers may not raise premiums when their policyholder is not at fault. This ruling protects citizens from arbitrary premium increases.
How Fault Impacts Insurance Rates
Comparative fault in California parking lot accidents means that your insurance premiums may increase substantially if you are 51% or more at fault. You must be principally at fault for insurers to legally charge you more for the same coverage. If you are not at fault, your claim will still be on your record, and some insurers consider claim frequency before approving a new policy or renewing an existing policy. If your vehicle damage is minor, it may not be worth filing an insurance claim due to your deductible and the long-term impact on your premium.
The California Good Driver Discount
California Code of Regulations Title 10, Section 2632.12 requires auto insurance providers to offer a 20% discount on policies for drivers with a good driving record. To qualify for the Good Driver discount, drivers must have had a license for the past 3 years and can’t have more than 1 point on their record during that time. The driver must also not have any felonies or misdemeanors on their driving record.
What Compensation Can Be Recovered After a Parking Lot Accident?
After a parking lot accident, victims can recover two types of compensation: economic and non-economic. Each serves a specific purpose with the intention to make the victim “whole” again after the losses incurred as a result of the accident.
Economic Damages
Economic damages cover quantifiable losses. Medical expenses like emergency room visits, diagnostic imaging, surgeries, extended hospital stays, and future medical care. Lost wages during recovery are also categorized under economic damages, along with reduced earning capacity for long-term injuries. Vehicle repair or replacement costs are also economic losses that can be recovered through economic damages.
Any additional expenses that you would not have had if you hadn’t been injured are added together to calculate what your total parking lot accident injury settlement should be. Attorneys work with economic experts, life planners, and vocational experts to predict future expenses so plaintiffs receive fair compensation for their losses.
Non-Economic Damages
Non-economic damages cover intangible harm that cannot be easily calculated. Common non-economic damages include pain and suffering, emotional distress, loss of enjoyment of life, and loss of consortium (lost companionship or damaged relationships). These damages are subjective, but California courts recognize them as valid.
Non-economic damages are calculated by taking your economic damages and multiplying them by 1–5 based on the severity of your injuries and how much they impact your life. For example, if your economic losses equal $500,000 and your injuries mean you can never work in the same field again, a multiplier of 4 may be used due to the long-term effect on your life. This means that your total compensation can equal $2.5 million.
California Non-Economic Damages Rules
In most personal injury cases, California does not cap non-economic damages, leaving them to the discretion of the parties and the judge who renders the final ruling. In some cases, medical malpractice cases have limits, but parking lot accident damages typically aren’t limited. Serious injuries can result in significant non-economic compensation.
Common Challenges in Parking Lot Accident Claims
Parking lot accident claims are rarely as straightforward as they seem. Here’s what could go wrong during your personal injury claim.
No Police Report
One of the most common challenges in parking lot accident claims is the lack of a police report. As mentioned, police aren’t typically required for crashes on private property. Without their official report, insurers have more room to dispute fault and shift blame to the victim. Police reports are a critical component of most car accident injury claims because they provide the immediate observations made at the scene.
Disputed Fault
Insurers often argue about shared fault to reduce their payouts, using a lack of evidence to justify low settlement offers. A lack of clear signage, traffic control, or witnesses leaves the details ambiguous enough that insurers can claim there isn’t sufficient evidence to prove who is at fault.
Lowball Settlement Offers
A lowball settlement is offered only to minimize the insurance provider’s financial liability. Adjusters often offer early settlements before the full impact of the victim’s injuries is known. Insurers typically offer lowball settlements when victims are at their most desperate for financial support. However, it’s important to understand that accepting a settlement waives your right to seek further compensation.
Delayed Injury Symptoms
Injuries like brain damage, internal bleeding, and soft tissue damage may only become evident days or weeks after the initial crash. The delay in symptoms increases the difficulty of parking lot accident claims because early settlement offers ignore the long-term costs of hidden injuries. If an injury causes unexpected issues after you have accepted a settlement, you will have to cover the majority of the expenses out of pocket.
Uninsured Driver
When the at-fault party is uninsured or underinsured, your financial recovery will depend on your own uninsured/underinsured motorist (UM/UIM) coverage. There is significant financial risk when the at-fault driver doesn’t have sufficient insurance to cover the full extent of your damages. You may need to file a lawsuit to pursue their personal assets if there are no other sources of compensation.
Hit-and-Run Accidents
Hit-and-run accidents are very common in parking lot crashes. If the at-fault party cannot be identified, your compensation will depend on your UM/UIM coverage. In some cases, the liable person can be tracked down with video footage and witness statements, but this isn’t always possible. Hit-and-runs make compensation recovery substantially more difficult.
What Evidence Can Strengthen Your Claim?
When filing a parking lot accident insurance claim, the likelihood of a good outcome depends on the strength of your evidence. The most useful and reliable evidence used in personal injury claims can include:
- Photos and videos from the accident scene: Vehicle damage, road conditions, lighting, signage, and physical hazards help you recreate the scene.
- Surveillance footage: Most parking lots have CCTV cameras that capture video round the clock. It’s critical to request the footage immediately because recordings are typically overwritten within 2- 72 hours.
- Witness statements: Collect the names, phone numbers, and written accounts from anyone who saw the accident happen. They can confirm important details about the crash to support your claim.
- Medical records: You must go to the doctor immediately, even if you feel well. You need to create a paper trail of seeking medical attention to make your injuries harder to dispute.
- Dashcam footage: If you or the drivers of nearby vehicles have dashcams, secure the footage and make copies so you have objective proof to use during your claim.
Why Legal Representation Is Important for Parking Lot Accident Claims
Hiring a car accident attorney to help you with your claim can improve your outcome because you will have someone to handle all the complex details of your case. At HHJ Trial Attorneys, we are ready to go to trial if we believe it is in the best interests of our client. Working with an attorney puts pressure on insurance providers to increase their settlement offers. We will not be manipulated into accepting a lowball offer, and we fight ruthlessly for our clients.
Accurate Claim Valuations
We calculate your full damages, including current and future costs. Our focus is split equally between economic and non-economic damages because we know that both play a crucial role in protecting your financial security.
Protection for Insurance Tactics
We have extensive experience with insurance companies that rely on several underhanded strategies to reduce payouts. Our attorneys will guide you through communications and prevent you from making statements that could damage your case.
No Upfront Costs
At HHJ Trial Attorneys, we work on a contingency fee basis, meaning we don’t get paid unless you win. There is zero financial risk when you visit us for the first time because we offer free, no-obligation case reviews to help you understand your options.
Parking lot accidents are stressful, and dealing with insurance companies on top of your injuries and property damage can make everything harder. If you’ve been involved in a car accident in a parking lot, you may be facing a long journey toward compensation. With HHJ Trial Attorneys, you do not have to face it alone. Contact us to schedule your free consultation.
