How Does Insurance Cover Parking Lot Accidents?
Whether you're running errands at the grocery store or backing out of a tight space at the mall, parking lots are hotspots for minor accidents. In fact, according to the National Safety Council, one in five accidents happens in a parking lot. And while the damage might look small, the insurance process can quickly feel overwhelming.
So, how exactly does car insurance work when you're involved in a parking lot accident in Tennessee? Let’s break it down.
Who’s At Fault? Yes, It Still Matters
Just because it happened in a parking lot doesn’t mean fault is irrelevant. Tennessee follows a fault or at-fault insurance system, meaning the driver who caused the accident is typically responsible for covering damages through their insurance.
Here are a few common scenarios:
You hit a parked car: Your collision coverage pays for your vehicle’s damage. The other driver can file a claim through your liability coverage.
Someone hits your parked car and drives off: If they leave no note, it’s considered a hit-and-run. In this case, your uninsured motorist property damage (UMPD) or collision coverage can step in.
Two cars back into each other: This is where fault might be shared. Tennessee uses modified comparative negligence, meaning if you’re found more than 50% at fault, you may not be eligible to collect damages from the other driver.
What Insurance Covers What?
Let’s quickly break down the main types of coverage that apply in parking lot incidents:
Liability Coverage: Pays for damage you cause to other vehicles. Required in Tennessee.
Collision Coverage: Pays for damage to your vehicle, regardless of who’s at fault.
Uninsured Motorist Property Damage (UMPD): Helpful in hit-and-runs or if the other driver doesn’t have insurance.
Comprehensive Coverage: Covers non-collision incidents (like theft, vandalism, or a shopping cart rolling into your car).
Pro Tip: Comprehensive and collision coverage are optional in Tennessee, but they’re often worth having—especially for everyday situations like these.
Should I File a Claim or Pay Out-of-Pocket?
If the damage is minor and the repair costs are less than your deductible, it may make sense to pay out-of-pocket. However, always report the incident to your insurance company—even if you don’t file a claim—just in case the other driver decides to.
What to Do Immediately After a Parking Lot Accident
Whether it's a tiny scratch or a full-on bump, here’s what to do:
Take clear photos of the damage
Exchange insurance and contact information
Look for witnesses or surveillance cameras
Notify your insurance provider
File a police report if needed (especially in hit-and-run cases)
Even in private lots, local law enforcement can file a report that may help your claim.
Carlson’s Advice: Review Your Policy Before Trouble Hits
Parking lot accidents are a reminder that the little things matter when it comes to insurance—like having the right deductibles and enough coverage for uninsured motorists.
At Carlson Insurance Group, we help Tennessee drivers understand their policies before they’re in a bind. Whether you’ve had a fender bender or just want peace of mind, our team is ready to walk you through your options. Reach out to Carlson Insurance Group today—we’ll make sure you’re covered for the unexpected, big or small.
