Who Pays for Hitting a Parked Car in Michigan

Accidentally hitting a parked car in Michigan is more common than you might think, whether it’s due to a tight parking spot, icy roads, or a brief lapse in attention. While the damage may appear minor, the legal and financial consequences can be severe. So, who pays for hitting a parked car in Michigan? The answer depends on Michigan’s no-fault insurance system and property protection insurance (PPI) rules. Understanding these laws is crucial for determining who is responsible for covering the damage. 

This article breaks down everything you need to know, including what to do immediately after the accident, how liability is determined, and how insurance coverage works. Whether you’re the driver who caused the accident or the owner of the parked vehicle, we’ll help you understand your responsibilities and rights under Michigan law so you can handle the situation correctly and avoid legal or financial penalties.

Who Pays for Hitting a Parked Car in Michigan?
In Michigan, the driver who hits a parked car is typically responsible for the damage. However, Michigan’s no-fault insurance laws and property protection insurance (PPI) may affect how payment is handled. Always report the incident and exchange information.

Michigan Law on Fault for Parked Car Collisions

In the state of Michigan, hitting a parked car typically results in automatic fault for the driver who caused the accident. Since the parked vehicle is not in motion and could not have contributed to the incident, liability generally falls on the person who hit the car. However, Michigan’s no-fault insurance laws introduce a unique layer to the claims process. Every auto insurance policy in the state includes Property Protection Insurance (PPI), which covers up to $1 million in damage to someone else’s property, such as a parked vehicle.

While PPI will usually cover the repair costs, that doesn’t mean the at-fault driver is free of consequences. The driver may still face an increase in their insurance premium and potential legal issues if they leave the scene without reporting the accident to the authorities. It’s considered a hit-and-run if you fail to notify the vehicle owner or police, which could lead to criminal charges. To stay compliant, drivers should take photos of the damage, leave a written note with their contact and insurance details if the owner is not available, and file a police report if necessary. Knowing and following these rules is key to protecting yourself after such an incident.

How Michigan No-Fault Insurance Handles Parked Car Claims?

If you hit a parked car in Michigan, it’s essential to understand how no-fault insurance laws impact financial responsibility. Here’s how the system works.

Overview of Property Protection Insurance (PPI)

In Michigan, every auto insurance policy must include Property Protection Insurance (PPI). This essential coverage pays for damages you cause to another person’s property, such as a parked vehicle, fence, or building. PPI is part of Michigan’s no-fault insurance system, ensuring that repair costs are covered regardless of litigation or fault disputes. It provides up to $1 million in coverage for each incident.

Insurance Coverage for the Parked Vehicle

When a driver hits a parked car, their PPI coverage typically handles the damages. In most cases, the owner of the parked car does not need to pay for repairs out of pocket. The claim is filed through the responsible driver’s insurer, making the process more streamlined and reducing direct financial impact on the vehicle owner.

Responsibilities of the Vehicle Owner

While the at-fault driver’s insurer processes the claim, the vehicle owner may still need to assist with paperwork, including submitting damage photos, repair quotes, or a copy of the police report.

Consequences for Uninsured Drivers

Drivers without insurance who hit a parked car are personally responsible for the full cost of the damage. They may also face civil lawsuits, fines, or license penalties as a result.

Essential Facts About Hitting a Parked Car in Michigan

Hitting a parked car in Michigan can seem like a minor incident, but it carries essential legal and financial consequences. Even in a no-fault state like Michigan, specific rules govern the handling of damage to parked vehicles. Here are the key facts you need to know:

  • Michigan operates under a no-fault insurance system; however, this doesn’t mean you’re exempt from responsibility when hitting a parked vehicle.
  • Property Protection Insurance (PPI) covers damage you cause to other people’s property, including parked cars, up to $1 million.
  • The at-fault driver must report the accident and provide their contact and insurance information to the car owner or leave it visible at the scene.
  • Your auto insurance company will typically cover the damages, but you may still see an increase in your premium following the claim.
  • Leaving the scene without reporting the incident or providing your information can result in criminal charges, including hit-and-run allegations.
  • PPI only applies to property damage, not your vehicle, so if your car is also damaged, you’ll need to rely on your collision coverage for repairs.

Understanding these rules ensures you handle such situations responsibly and legally.

Legal Penalties and Consequences of Hitting a Parked Car

In Michigan, hitting a parked car and failing to follow proper legal procedures can result in serious consequences beyond just an insurance claim. If a driver strikes a parked vehicle and leaves the scene without leaving contact information or reporting the incident, it is legally considered a hit-and-run. This offense can carry either misdemeanor or felony charges depending on the extent of the damage. Drivers may also receive points on their license, face hefty fines, or even be jailed.

Even if the driver does not flee the scene, failing to notify law enforcement or the vehicle’s owner may result in citations for not reporting the accident. Additionally, any claim paid out by your insurance under Property Protection Insurance (PPI) can trigger a rise in your premium or lead to stricter coverage conditions. To avoid these legal and financial risks, it’s crucial to leave your contact details, take photos of the damage, and file a police report promptly after the incident.

Who Pays for Hitting a Parked Car in Michigan?

Accidents involving parked cars are more common than you might think, and in Michigan, understanding who pays for hitting a parked car is crucial for both parties involved. Here’s how responsibility and insurance coverage are typically handled in these situations.

  1. Insurance Coverage Takes the Lead: In Michigan, every auto insurance policy must include Property Protection Insurance (PPI). If you hit a parked car, your insurer typically pays for the damage to the other vehicle—up to $1 million—under this coverage. This system streamlines compensation, even though fault still matters for recordkeeping and rates.
  2. Responsibility of Uninsured or Underinsured Drivers: If a driver lacks proper insurance or is underinsured, they are personally responsible for the damages they cause. This can lead to legal action, out-of-pocket expenses, or debt collection efforts if the at-fault individual is unable to cover the costs.
  3. Fault Still Has Legal Relevance: Despite Michigan’s no-fault insurance model, fault does play a role in determining liability for damage to non-moving property, such as parked cars. The person who struck the vehicle is generally considered responsible, and their insurer will be expected to pay.
  4. Actions Required by the Parked Car Owner: The vehicle owner should take photographs of the damage, file a police report—especially if the driver left the scene—and then contact the at-fault party’s insurance company to begin the claims process.

Final Thoughts

Accidents involving parked cars might seem minor, but they carry profound implications, especially in Michigan. If you’re wondering who pays for hitting a parked car in Michigan, the answer largely depends on the circumstances and whether proper steps are taken. Michigan’s no-fault law ensures that property damage is typically covered under the at-fault driver’s Property Protection Insurance (PPI). Still, this doesn’t eliminate your legal responsibility. 

Failing to notify authorities, neglecting to leave your information, or driving without insurance can all lead to severe consequences. To avoid legal trouble and financial strain, act responsibly: exchange details, report the incident, and ensure your insurance is active. Ultimately, handling the situation with honesty and prompt action is your best protection.

FAQ’s

Who pays for hitting a parked car in Michigan?
The at-fault driver’s insurance, specifically through Property Protection Insurance (PPI), usually covers the cost of damage to the parked car up to $1 million.

Can I be sued for hitting a parked car in Michigan?
Yes, especially if you leave the scene or do not have valid insurance. The vehicle owner may pursue legal action to recover damages.

Does no-fault insurance cover a parked car hit by another driver?
Yes, Michigan’s no-fault law requires the at-fault driver’s PPI to pay for damage caused to a parked vehicle or other property.

What happens if I hit a parked car and leave the scene without reporting it?
Leaving without reporting is considered a hit-and-run offense in Michigan and may result in criminal charges, fines, or license suspension.

Will my insurance rates go up if I hit a parked car?
Likely yes. Even if your insurance covers the damage, your provider may view you as a higher risk and increase your premium.

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