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What Happens with Car Insurance if I Have a Parking Lot Accident?

September 29, 2025

Fender bender and parking lots often go together. Do you know how your car insurance works in a parking lot accident?

Your car insurance basically treats a parking lot accident like an accident on a public road. The basic rules of the road still apply.

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Let’s take a look at insurance coverage for parking lot accidents in Manitoba.

How is fault determined in a parking lot accident?

Insurance companies in Canada rely on provincial "Fault Determination Rules" to assign responsibility.

It’s a myth that all parking lot accidents are 50/50 fault. This is rarely the case.

Here are some common parking lot accident scenarios and how fault is typically determined:

• Hitting a legally parked car: If you hit a stationary, legally parked vehicle, you will almost always be considered 100% at fault in a parking lot accident. This includes backing into a parked car or opening your door into another car.
• Backing out of a parking spot into a moving vehicle: When you're backing out of a parking spot, you must yield to vehicles already in the feeder lane (the lane between rows of parked cars). If you back out and hit a car in the feeder lane, you'll likely be at fault.
• Two vehicles backing out at the same time: This is one of the few scenarios where fault is often split 50/50. Since both drivers are responsible for their own movement and neither has the clear right-of-way, both typically share responsibility.
• Colliding in a thoroughfare (main lane): Vehicles in the main lanes of a parking lot generally have the right-of-way over vehicles entering from feeder lanes or exiting parking spots. If you're entering a thoroughfare and collide with a vehicle already in it, you're likely at fault.
• Competing for a parking spot: When two cars are vying for the same spot and collide, fault can be shared. Factors like who had the right-of-way, impact points, and how far each vehicle was into the parking spot will be considered, though.
• Hitting a stationary object: If you hit a stationary object like a curb, light pole, or even a shopping cart, you will be at fault.
• Hit and run: If your legally parked car is hit and the other driver leaves the scene without providing information, this is a hit-and-run accident. You'll generally need collision or all perils coverage to cover the damage to your vehicle. Reporting to the police within 24 hours is usually required for your insurer to consider it a not-at-fault accident.
• Hitting a pedestrian or cyclist: Drivers are expected to exercise extreme caution around pedestrians and cyclists in parking lots. If you hit a pedestrian or cyclist, you will often be found at fault.

How your Manitoba car insurance covers parking lot accidents

Your Manitoba car insurance policy will respond to parking lot accidents in the same way it would for any other collision. Key coverages include:

• Direct compensation/property damage (DCPD): In provinces that have a no-fault or some sort of no-fault system (Quebec, Ontario, Manitoba, Saskatchewan, Alberta in 2027, British Columbia, New Brunswick, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island), this coverage pays for damages to your vehicle if you are not at fault, regardless of who caused the accident. You deal directly with your own insurer. Note that DCPD is now optional in Ontario.
• Collision or upset coverage: This optional coverage pays for damage to your own vehicle resulting from a collision, regardless of who is at fault. If you are found at fault for a parking lot accident, this is the coverage that will typically cover your vehicle's repairs, after your deductible.
• Liability coverage: This mandatory coverage protects you if you are found legally responsible for damaging another person's property (like their vehicle) or causing injury to them.
• Comprehensive coverage: This optional coverage protects your vehicle from non-collision incidents, such as theft, vandalism, fire, or damage from falling objects. While not directly for collision, it's important for hit-and-run scenarios where the other driver isn't identified.
• Accident forgiveness: If you have this endorsement on your policy, your first at-fault accident (including a parking lot accident) typically won't impact your premium at renewal.

Steps to take after a parking lot accident

Follow these steps:

Be safe: Check for injuries to yourself or anyone else involved. If someone is hurt, call 911 immediately.

Move to safety: If your vehicle is driveable and it's safe to do so, move it out of the way of traffic to prevent further incidents. Turn on your hazard lights

Exchange information: Get the following details from all involved drivers:

○ Name, address, and phone number

○ Driver's license number

○ License plate number

○ Insurance company and policy number

Collect evidence:

○ Take photos of the vehicles involved, the damage, the surrounding area (e.g., parking lines, signs, road conditions), and any relevant landmarks.

○ Note the date, time, and exact location of the accident.

○ Look for witnesses and get their contact information.

○ Check for security cameras in the parking lot that may have captured the incident.

Report to police: While minor parking lot accidents often don't require police involvement, you generally must report the accident to the police if:

○ Anyone is injured.

○ You suspect impaired driving or other criminal activity.

○ Both vehicles have a lot of damage

○ It's a hit and run where the other driver cannot be identified.

Contact your insurance provider: Contact your Manitoba insurance broker or company as soon as possible, ideally within 24 hours. Provide them with all the details and evidence you've collected. They will guide you through the claims process.

How to prevent parking lot accidents

Stay vigilant and practice these tips to minimize your chances of an accident:

• Slow down: Always drive slowly and cautiously in parking lots.
• Eliminate distractions: Put away your phone and avoid other distractions. Your full attention is needed.
• Be aware of your surroundings: Look out for pedestrians (especially children), shopping carts, other vehicles, and stationary objects.
• Use turn signals: Clearly indicate your intentions when turning or changing lanes.
• Back in: If possible, back into parking spots. This provides a better field of vision when you're leaving.
• Obey Signs: Follow all stop signs, yield signs, and directional arrows.
• Yield the right-of-way: Remember that vehicles in main thoroughfares and those already in lanes generally have the right-of-way.
• Park strategically: Consider parking further away from entrances or in less congested areas to reduce exposure to traffic.
• Use your mirrors and shoulder check: Don't rely solely on backup cameras. Always use your mirrors and do a shoulder check before backing up or changing lanes.

Final thoughts

Parking lot accidents can happen and you should take a moment to understand your car insurance coverage and know what to do in the event of a collision.

FAQs about parking lot accidents

Will a parking lot accident always affect my Manitoba insurance premiums?

If you are found not at fault for the accident, your premiums are less likely to be impacted, especially in "no-fault" provinces with DCPD. However, if you are found at fault, your premiums may increase upon renewal. Having "Accident Forgiveness" on your policy can also protect your rates for your first at-fault accident.

Should I call the police for a parking lot fender bender?

Generally, you don't need to call the police for minor damage with no injuries. However, you must report to the police if there are injuries, if you suspect impaired driving, if the combined damage exceeds a provincial threshold (e.g., $2,000), or if it's a hit and run where the other driver fled the scene.

What if the other driver doesn't have insurance or refuses to provide information?

If the other driver is uninsured, your own uninsured motorist coverage (which is mandatory in most Canadian provinces) would typically cover your bodily injuries. For damage to your vehicle, you would need collision or all perils coverage on your own policy. If they refuse to provide information, document everything, take photos, and immediately report the incident to your insurance provider and the police.

How is fault determined in a car accident if there are no witnesses or security footage?

In cases without witnesses or footage, insurance providers will rely on the physical evidence (e.g., location of damage on both vehicles) and the Fault Determination Rules of your province. Both drivers' statements will be taken into account, and if conflicting, fault may still be assigned based on the most probable scenario according to these rules. In some complex cases, fault might be split or even remain undetermined.

Should I get an estimate for the damage in a car accident before contacting my insurance?

A: While you can get an estimate, it's best to contact your insurance provider first. We can guide you through the claims process, which usually involves sending an appraiser or directing you to a preferred repair shop for an estimate. Getting an estimate yourself beforehand could cause delays or extra steps.