Parking lot accidents are commonly covered under car insurance, depending on the type of policy and the nature of damage. Comprehensive and own-damage covers protect your vehicle, while third-party insurance handles liability towards others. Understanding fault determination, claim steps, and proper documentation helps ensure smooth and timely claim settlement.
The simple answer is yes, most insurance policies cover parking lot accidents. However, understanding which type of policy covers which type of parking lot accidents ensures that your claims are not rejected. This article will help you understand situations related to parked vehicles and how car insurance can ensure your financial safety.
What is a Parking Lot Accident?
As the name suggests, a parking lot accident is an accident involving a vehicle that is parked in a spot meant for parking (like commercial areas, schools, apartment complexes, residential driveways, etc.). The accident can involve pedestrians, a stationary car or a vehicle parking in or out of the lot. A parked car may bear scratches, dents, scuffs, or minor damage from another vehicle, or might hit a pedestrian while reversing back from the parking spot. Multiple types of parking lot accidents can be covered by insurance
Types of Parking Lot Accidents Covered by Insurance
Parking lots may seem low-risk, but accidents here are quite common. The good news is that most parking lot incidents are covered under motor insurance, depending on the type of policy and damage involved.
Here are the main types of parking lot accidents, generally covered by insurance:
Vehicle-to-Vehicle Collisions
Hit-and-Run Damage (Parked Vehicle)
Scratches, Dents, and Body Damage
Pedestrian Injury in Parking Areas
Two-Wheeler Toppling or Slipping in a Parking Area
Vandalism or Malicious Damage
Minor crashes while reversing, turning, or entering/exiting parking slots are covered under comprehensive insurance and third-party liability, depending on fault.
If your parked car or bike is damaged by an unknown vehicle, own-damage cover under comprehensive insurance applies.
Scratches from tight parking spaces, doors opening into another vehicle, or low-speed impacts are covered under own-damage insurance.
If a pedestrian is injured due to your vehicle, third-party insurance covers medical expenses and legal liabilities.
Bikes slipping on uneven surfaces, oil spills, or ramps in parking lots are covered under own-damage cover.
Intentional damage like broken mirrors, scratched paint, or smashed lights in parking areas is covered under comprehensive insurance (FIR may be required).
Insurance Policies That Cover Parking Lot Accidents
The type of auto insurance policy you hold determines whether and how the damage caused in parking lot accidents is covered. Here’s a clear explanation of the insurance policies that cover parking lot accidents:
1. Collision Coverage (Under Comprehensive Insurance)
Collision coverage is included as part of a comprehensive car insurance policy. If your car collides with another vehicle while reversing, turning, or manoeuvring in a parking lot, this cover helps pay for your vehicle’s repair costs after a claim is filed.
2. Comprehensive Car Insurance Policy
A comprehensive policy offers the widest protection for parking lot-related incidents. It covers damage caused by:
Vehicle-to-vehicle collisions
Hit-and-run incidents while parked
Natural events like flooding or falling objects in parking areas
This policy is ideal for anyone seeking all-round protection, even when the car is stationary.
3. Stand-alone Own Damage Car Insurance Policy
A stand-alone own damage policy protects your car against repair expenses arising from parking lot damage, even if the person responsible cannot be identified. This is especially useful in hit-and-run cases or when CCTV footage or witnesses are unavailable.
4. Third-Party Insurance Policy
A third-party policy applies when you damage someone else’s vehicle in a parking lot. It covers the legal liability and repair costs of the third party’s vehicle, but does not cover damage to your own car.
5. In short:
Damage to your own vehicle → Comprehensive or Own Damage policy
Damage to someone else’s vehicle → Third-party policy
Determining Fault in Parking Lot Accidents
Determining fault in parking lot accidents can be more complex than on public roads, as traffic signals and lane markings are often unclear. Insurers rely on evidence, statements, and established right-of-way rules to decide liability and approve claims.
Here’s how fault is usually determined in parking lot collision scenarios:
1. Eyewitness Statements
Independent eyewitnesses play a crucial role in establishing what actually happened. Their statements help insurers verify:
Vehicle movement and direction
Speed and driver behaviour
Whether a vehicle was stationary or reversing
Eyewitness accounts are especially useful when both drivers dispute responsibility.
2. CCTV Footage
CCTV cameras installed in malls, offices, residential complexes, or commercial parking areas are among the strongest pieces of evidence. Footage can clearly show:
The point of impact
Which vehicle was moving or reversing
Lane usage and driver negligence
3. Police Reports (FIR or GD Entry)
While minor parking lot accidents may not legally require an FIR, a police report or General Diary (GD) entry adds credibility to the claim. It helps:
Officially document the incident
Record statements of the involved parties
Support hit-and-run or vandalism claims.
Police documentation becomes important in case of disputes or injury.
4. Right-of-Way Rules
Even in parking areas, basic right-of-way principles apply:
Vehicles already moving in a lane usually have priority over those reversing or entering a spot
Drivers reversing out of parking spaces are generally held responsible.
Vehicles exiting a parking lot must yield to those already on the main road.
Insurers use these rules to assess negligence in common parking lot collisions.
5. Physical Evidence and Damage Patterns
Damage location, scratch direction, and impact marks help insurers reconstruct the accident. For example:
Rear damage often indicates a reversing fault
Side scrapes suggest improper lane clearance.
Final assessment: Insurance companies evaluate all available evidence together before assigning fault. If responsibility cannot be clearly established, liability may be shared between drivers.
Insurance Claim Process for Parking Lot Accidents
Parking lot accidents are usually minor, but the claim process still needs to be followed correctly to avoid rejection or delays. Whether it’s a scratch, dent, or a hit-and-run, timely reporting and proper documentation are key to a smooth insurance claim.
Step-by-Step Insurance Claim Process
1. Ensure Safety First
Check for injuries and move the vehicle to a safe spot if possible to avoid blocking traffic within the parking area.
2. Inform Your Insurance Company Immediately
Notify your insurer as soon as the incident occurs. You can do this via their helpline, website, or mobile app. Share basic details like location, time, nature and type of damage caused by the parking lot accident.
3. Collect Evidence at the Spot
Take clear photos and videos of:
Vehicle damage from multiple angles
Surrounding area and parking layout
Other vehicle involved (number plate, damage)
If available, note eyewitness details and check for nearby CCTV cameras.
4. File an FIR or GD Entry (If Required)
An FIR or General Diary entry is usually required for hit-and-run cases, vandalism, theft-related damage, or if there is third-party injury or major damage.
5. Submit the Claim Form and Documents
Fill out the claim form and submit the required documents, such as:
Insurance policy copy
Registration Certificate (RC)
Driving licence
FIR/GD copy (if applicable)
Photos of damage
6. Vehicle Inspection by Surveyor
The insurer may appoint a surveyor to assess the damage caused in the parking lot accident. Do not begin repairs until the inspection is completed or approval is received.
7. Repair at Network Garage
Once approved, get the vehicle repaired at a network garage for a cashless claim, or choose a non-network garage and opt for reimbursement.
8. Claim Settlement
After repairs, the insurer settles the claim directly with the garage or reimburses you as per policy terms, deducting deductibles and depreciation if applicable.
Quick tip: Always report parking lot accidents promptly and avoid private cash settlements if you plan to file an insurance claim, as this can weaken your case later.
Tips to Ensure Smooth Claim Approval
Following the right steps immediately after a parking lot accident can significantly improve your chances of quick and hassle-free claim approval.
Inform your insurer as soon as the incident occurs without unnecessary delay.
Take clear photos and videos of the damage, surroundings, and other vehicles involved.
Collect eyewitness details and check for nearby CCTV cameras.
File an FIR or GD entry for hit-and-run, vandalism, or major damage cases.
Avoid starting repairs before the insurer’s surveyor inspection.
Provide accurate and consistent details in the claim form.
Ensure your driving licence, RC, and insurance policy are valid and up to date.
Choose a network garage to speed up cashless claim settlement
Summing Up
Parking lot accidents may seem minor, but they can still lead to unexpected repair costs and claim complications if not handled correctly. Having the right insurance cover and following the correct claim process ensures financial protection even in low-speed incidents. By reporting the accident promptly and maintaining proper documentation, you can ensure a smoother and faster claim settlement.
Related Articles to Read:
How to Park a Car Perfectly with Step-by-Step Guide
When is a Car Inspection Required?
How Cubic Capacity Impacts Car Insurance Premiums
Frequently Asked Questions
Do parking lot accidents count as real accidents?
Yes. Parking lot incidents are treated as valid road accidents by insurers, even though they usually occur at low speeds.
Can I file an insurance claim for a parking lot crash?
Yes. You can file a claim under comprehensive or stand-alone own damage insurance for damage to your vehicle, and under third-party insurance for damage to others.
Who is usually at fault in parking lot accidents?
Fault is generally assigned based on right-of-way rules, vehicle movement, and evidence. Drivers reversing, entering lanes, or violating right-of-way are often held responsible.
Will my insurance cover a hit-and-run in a parking lot?
Yes. Hit-and-run damage to your parked vehicle is covered under comprehensive or own damage insurance, usually with an FIR or GD entry.
Do I need a police report for a parking lot accident?
For minor damage, it may not be mandatory. However, a police report is usually required for hit-and-run cases, vandalism, injuries, or major damage.
Are parking lot accidents harder to prove?
They can be, especially without witnesses. CCTV footage, photographs, police reports, and damage patterns help insurers determine liability.
Does insurance cover pedestrian accidents in parking lots?
Yes. If a pedestrian is injured due to your vehicle, third-party insurance covers medical expenses and legal liabilities.
Should I use a Zero-Depreciation Cover for parking damage?
Yes. Zero-depreciation cover is useful for parking lot claims as it reduces out-of-pocket expenses for minor dents, scratches, and plastic part damage.
Are cashless claims available for parking lot accidents?
Yes. If you repair your vehicle at a network garage, cashless claim settlement is available, subject to policy terms and insurer approval.
Disclaimer: The information shared in this article is for general guidance only and should not be considered exhaustive or definitive. Coverage, terms, and conditions may vary across insurers. Always refer to your car insurance policy document for precise details on inclusions, exclusions, and claim eligibility.
