If your car is hit by another car in a parking lot, it is covered by collision insurance, not comprehensive insurance. But if the at-fault driver is identified and has insurance, their liability coverage should pay to repair or replace your vehicle, so you won’t need to file a collision claim.
Comprehensive insurance covers events other than a car crash, such as theft, natural disasters, and vandalism. So if your car is hit by a golf ball or a shopping cart in a parking lot, comprehensive will pay for the damage. Similarly, vandalism to a car in a parking lot will be covered by comprehensive insurance. But anything involving two cars will be covered by collision insurance.
No, comprehensive insurance does not cover a hit-and-run collision. Hit-and-runs are usually covered by collision insurance, while comprehensive insurance covers non-accident damage (which could include vandalism done to a car by an unidentified perpetrator).
In other words, a hit-and-run accident does not qualify for comprehensive coverage since it involves a collision with another vehicle, but hit-and-run vandalism would be covered by comprehensive insurance.… read full answer
If someone hit your parked car, you should file an accident report with the police, even if an officer can’t come to the scene. A police report is not always required to file a claim, but it does make the process easier and might come in handy if there is more damage than you initially think.… read full answer
If the person who hit your car left a note, their insurance company should pay for your expenses with property damage liability insurance. But if the incident was a hit-and-run, you or your insurance company will end up footing the bill.
What to Do After Someone Hits Your Parked Car
1. Document the accident at the scene as much as possible.
Take photos of the note left by the other driver, if there was one. Photograph any damage to your car and the overall scene, including a view of the roadway, the position of your vehicle, and any wreckage or skid marks. If possible, get information from witnesses, including names, contact details, and a brief statement. Note the date, time, location, weather conditions, and any other relevant details, too.
2. Contact the police to file an accident report.
An officer might be dispatched to the scene to investigate and write a report, or you might be asked to provide details to your local district in person or online.
3. Begin the claims process with your insurance company.
Your insurance company will guide you through the claims process and contact the other driver’s insurance provider on your behalf, if the person who hit your car left a note. If someone hit your car and didn’t leave a note, you’ll have to file a claim using your own collision coverage or uninsured motorist protection, assuming you carry these coverage types.
4. Insurance to Use If Your Car Is Hit While Parked
If your car is hit while parked, you can use your collision insurance or uninsured/underinsured motorist coverage to pay for the damage. Both types of coverage typically have a deductible, though, which means you’ll probably pay something out of pocket to get your car fixed. You’ll also be subject to your policy limits, so you’ll be responsible for any cost that exceeds your coverage terms.
Finally, it’s important to note that uninsured motorist property damage coverage is not available in some states. And in other states where it is available, you might be unable to use it if the at-fault driver is unidentified.
You should drop your collision insurance when your annual premium equals 10% of your car's value. If your collision insurance costs $100 total per year, for example, drop the coverage when your car is worth $1,000. At that point, your insurance payments are too close to your car's value to be worthwhile. Drivers can easily find a car’s value with the online vehicle appraisal calculators from Edmunds or Kelly Blue Book.… read full answer
The 10% rule for dropping collision insurance is not set in stone. But it’s a good milestone to keep in mind because as the value of a vehicle falls over time, the value of its insurance coverage does too. And when you start paying a significant portion of your car’s value in premiums each year, you’re simply overpaying to offset the actual level of risk that remains – at least as far as collision damage to your own vehicle is concerned.
Collision insurance repairs or replaces your insured car if it's damaged, whether by another vehicle or an object like a tree or mailbox. This insurance covers up to the cash value of your car - which is where the 10% rule comes in. This rule most frequently applies to older cars or vehicles with a lot of mileage, as they are worth relatively low amounts. There are a few other situations where it might be a smart move to drop collision insurance, too.
When to drop collision insurance
When you rarely use your car
The more you drive, the higher your risk of being in an accident – so if you don’t drive often, your risk is lower than average. That means you could be paying for collision insurance that you’re unlikely to need.
When repairing a car would not have a big impact on your finances
Maybe you have an emergency fund that you could use to fix your vehicle. If you're willing to spend your savings on car repairs, then it's safe to drop collision insurance. However, people often prefer their emergency fund to be a safety net for when they leave their job, face health issues, or need home repairs. It all depends on what you're comfortable with personally and how much you have saved.
When you’re paying 10% of your car’s value in premiums annually
The cost of repairs goes down as your car gets older, so you don’t want to overpay as your car loses value.
When NOT to drop collision insurance
Every state requires car insurance except for New Hampshire and Virginia. However, the law doesn't mandate collision insurance. The only legally-mandated car insurance is liability coverage, for damages to someone or something that you accidentally hit with your car. Although collision insurance is optional, it's well worth purchasing for many people.
If you're financing your car, collision insurance is usually required. Otherwise, you might be stuck with a repair bill equivalent to the value of your new vehicle! If you're leasing your car, the same logic applies – most lessors require drivers to carry collision insurance, too.
In summary, it's a smart money move to drop collision insurance when your car is old or has high mileage, but you should definitely think twice about doing so.
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