Does auto insurance cover accidents on private property?

Car insurance does cover accidents on private property. Accidents on private property work the same as accidents on a public street except for the owner of the property could be liable. Therefore, you'll need auto insurance regardless of the situation. The National Association of Insurance Commissioners (NAIC) says the national average for full coverage insurance is $1,030 per year or $86 per month. Continue reading to learn more.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Jun 1, 2021

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What You Should Know

  • Your auto insurance company can still cover accidents on private property.
  • The national average premium for auto insurance is $1,030 per year.
  • An owner of the private property may be liable.

Car accidents are scary but you know your insurance will take care of you. With car accidents on private property, however, you may not be so sure.

Auto insurance companies can cover accidents on private property, but it depends on the nature of the accident. Does car insurance cover accidents on private property owned by someone else? Being able to answer this question is an important key to understanding auto insurance.

An owner of private property may be liable for property damage to your vehicle or bodily injury to you. We’ll talk about the conditions where insurance can cover you and situations where an owner of private property is liable. Knowing how to compare auto insurance quotes will save you money.

If you’re ready to start shopping for affordable auto insurance now, just enter your ZIP code in the FREE comparison tool above to find auto insurance quotes available in your area.

Does auto insurance cover accidents on private property?

If you collide with a vehicle on private property, the rules of fault still apply. You still need to call law enforcement, contact your insurance provider, and follow up on your claim. A private property owner can cover a car that’s damaged because of a falling object or some other accident if the owner is found to be negligent.

There are specific conditions that make a private property owner responsible for damage to your vehicle. Usually, a car accident requires the standard claims report to your auto insurance company to let them know what happened.

A private property owner is not responsible for the negligence of other drivers on their property. Therefore, your car insurance company can provide coverage for you.

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Car Damaged on Private Property

Your car was damaged on private property, so what do you now? Contact your car insurance company right away and give them the details on what happened.

Don’t wait to call them. The sooner you tell them, the better the information will be. Treat vehicle accidents on private property the same way you would an accident on a public street.

You have the option not to call law enforcement, but it could complicate the claims process. Take photos of the damage to prove your case. If the private property owner is responsible, contact the owner’s insurance company to receive compensation. However, it would help if you still alerted your insurance provider to have it on record.

Be prepared for anything. The first step to securing auto insurance is comparing quotes. Enter your ZIP code in the FREE online tool to find affordable car insurance in your area.

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Car Accident on Private Driveway

First thing’s first: we know we purchase auto insurance to protect us in the instance of car accidents. And according to the Insurance Information Institute (III), auto insurance is required in just about every state. In other words, you have a responsibility.

Auto accidents on private property driveways or condominium parking spaces should also be treated like any other accident. Fender benders usually don’t require law enforcement, but you can claim your car insurance company or the car insurance company of the other party.

If you have collision auto insurance, you can receive coverage regardless of fault.

Collision coverage is one of the insurance options that can help you pay for fender benders that occur on private property or any other location.

Hit and Run on Private Property

According to Edgar Snyder & Associates, a hit and run is a crime. It’s a felony that brings a fine and prison time once convicted. The law responds the same to hit and run regardless of where it takes place.

Some states require drivers to carry uninsured/underinsured motorist coverage (UM/UIM) on their auto insurance policy. If a hit-and-run driver hits you, UM/UIM will compensate for any damages and injuries.

Watch this video on the difference between uninsured and underinsured motorist coverage.

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Auto Insurance Coverages You Need

We skimmed over a few auto insurance coverages you could use to be prepared for car accidents. Different coverages have different roles.

For example, your liability auto insurance will only cover property damage or bodily injury to someone else. If you need coverage regardless of fault, you’ll need Personal Injury Protection (PIP) and collision car insurance.

Enroll in comprehensive auto insurance to protect vehicles from incidents that do not involve collisions, such as vandalism, vehicle theft, fire, flooding, storms, and falling objects.

Are these coverages expensive? It depends on the company. According to the NAIC, the national average for car insurance is as low as $553 per year. Let’s look at the national averages for car insurance based on NAIC research.

Average Annual and Monthly Auto Insurance Rates by Coverage Type
Coverage TypesAverage Annual Coverage RatesEstimated Monthly Coverage Rates
Liability Coverage$555$46
Collision Coverage$326$27
Comprehensive Coverage$148$12
Full Coverage$1,030$86
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On average, liability auto insurance is the most expensive. If you own a vehicle with a high value, your collision and comprehensive coverage will be more expensive. It all depends on the car you drive, the company that has your policy, and where you live.

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Accidents on Private Property: The Bottom Line

Does car insurance cover damage on private property? The short answer is yes. The circumstances of the accident may affect what the insurance will cover. A vehicle that’s damaged on private property due to a fallen object or vandalism may be the responsibility of the property owner’s insurance.

Many policyholders bundle car insurance to home insurance, protecting their home and the personal property of guests. Always double-check to see how specific situations can affect your vehicle.

Ready to buy auto insurance? Don’t wait for your vehicle to get damage from traffic accidents on private property or anywhere else. Enter your ZIP code in the FREE online quote tool below to get started finding auto insurance rates.

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