Private Property Accidents: When To Report To Insurance

Private property accidents can be confusing, and it's often unclear who is liable for damages. Private property accidents are any accidents that don't occur on a public road or government property, and they can range from backing out of a parking space to driving into a pothole. While many of the same protocols and laws apply as they would for accidents on public roads, some rules and regulations might not apply in private spaces. For instance, police may not have jurisdiction on private property and therefore might not complete an official police report. However, it is still important to notify your insurance company of any accident on private property, as this could impact your coverage and ability to make a claim in the future.

Comprehensive or collision coverage insurance

If you've been in an accident on private property, your first step should be to determine who is at fault. In some cases, the property owner may be wholly or partially to blame. For example, if you crashed due to existing damage on the road surface, and the property owner was aware of the issue but hadn't fixed it, they may be liable. If you believe this to be the case, you should gather evidence to support your claim, such as photographs of the damage. You should also get in touch with the property owner to discuss the situation and try to obtain any relevant camera footage.

Regardless of who is at fault, you should lodge a claim with your insurance company, providing as much detail as possible. If the damage is significant or someone is injured, you should also request a police report to submit to your insurance company. However, please note that the police will not always attend an accident on private property, and you may only receive an incident report.

Now, onto the differences between comprehensive and collision coverage insurance.

Comprehensive Coverage Insurance

Comprehensive insurance covers damage to your vehicle from non-collision incidents, such as:

• Theft
• Vandalism
• Animal damage
• Weather damage
• Fire
• Natural disasters
• Civil disturbances

In short, comprehensive insurance covers damage caused by events other than collisions. For example, if your car is damaged by a falling tree or a hail storm, comprehensive insurance will cover the cost of repairs.

Collision Coverage Insurance

On the other hand, collision insurance covers damage to your vehicle resulting from a collision with another vehicle or object. This includes accidents involving:

• Another car
• A single-car rollover
• Stationary objects like road signs or guardrails

So, if you hit a telephone pole or another car, collision insurance will help pay for the repairs or replacement of your vehicle.

Both comprehensive and collision insurance are optional but highly recommended, especially if you have a high-value vehicle or live in an area with a high risk of accidents. They are typically required if you finance or lease your vehicle.

While comprehensive and collision insurance are important for protecting your vehicle, they do not cover injuries sustained in an accident or items stolen from your car. To ensure you have adequate coverage, it is essential to review your policy regularly and consult with your insurance provider to clarify any doubts.

Police involvement

In the event of a car accident on private property, involving the police may not always be necessary. However, it is important to note that police involvement can depend on various factors and the specific circumstances of the incident. Here are some key considerations regarding police involvement:

• Severity of the Accident: If the accident resulted in significant damage, injuries, or fatalities, contacting the police is crucial. The police can provide valuable assistance and ensure that those involved receive the necessary medical attention.
• Jurisdiction and Official Reports: While police officers typically have jurisdiction over public roads and government property, they may not have the same authority on private property. In some cases, they might not create an official police report or issue tickets for accidents on private property. However, they can still provide an incident report, which can be helpful for insurance and legal purposes.
• Damage to Government Property: If the accident resulted in damage to any government-owned property, it is essential to involve the police. They will document the damage and create a report, which can be crucial for insurance claims and determining liability.
• Gathering Evidence: Even if an official police report is not available, the police can still play a role in gathering evidence. They can make observations, talk to witnesses, and collect statements. This information can be valuable for determining liability and supporting insurance claims.
• Proving Fault: In cases where liability is unclear or disputed, the police can help establish who is at fault. Their observations and incident reports can provide valuable insights and support personal injury claims.
• State-Specific Regulations: It is important to note that regulations regarding police involvement in private property accidents may vary from state to state. For example, in Virginia, the doctrine of contributory negligence applies, which can make it challenging for individuals to collect damages from other drivers or property owners.
• Hit-and-Run Incidents: If another driver is involved in the accident and leaves the scene without providing their information, contacting the police is essential. They can help identify and locate the other driver, and their involvement can be crucial for filing insurance claims and ensuring proper compensation.

It is always a good idea to involve the police, even in accidents on private property. Their presence and documentation can provide valuable support for insurance claims, legal proceedings, and determining liability. However, it is worth remembering that the level of police involvement may vary depending on the specific circumstances and the jurisdiction of the incident.

Private property definition

Private property is a legal designation for the ownership of property by non-governmental entities. Private property is distinguishable from public property, which is owned by a state entity, and from collective or cooperative property, which is owned by one or more non-governmental entities.

Private property refers to the ownership of property by private parties—essentially, anyone or anything other than the government. It may consist of real estate, buildings, objects, or intellectual property (such as copyright, patents, trademarks, and trade secrets).

The transfer of private property commonly occurs through the owner's consent, a sale, or as a gift. Private property is foundational to capitalism, an economic system based on the private ownership of the means of production and their operation for profit.

The concept of private property is defined and enforced by a country's political system, with the area of law that deals with this subject known as property law. The enforcement of property law concerning private property is a matter of public expense.

The rights to private property often come with limitations. For example, local governments may enforce rules and regulations about the type of buildings that can be constructed on private land.

Some forms of private property are uniquely identifiable and may be described in a title or a certificate of ownership. The rights to private property can be transferred from one owner to another through a sale or as a gift, and can also be passed on to family members through inheritance.

In certain cases, ownership of private property may be lost to the public interest. For example, private real estate may be confiscated or used for public purposes, such as the construction of a road.

Insurance rates increase

Insurance rates can increase for a variety of reasons, some of which are within the control of the insured, and some of which are not. Here are some of the most common reasons for insurance rate increases:

Accidents and Traffic Violations

Both at-fault and not-at-fault accidents can lead to an increase in insurance rates. Insurance companies view drivers with accidents on their records as being at higher risk for future accidents. Even a minor moving violation ticket could result in a higher insurance rate. Speeding tickets, DUI violations, and multiple traffic infractions indicate a greater likelihood of accidents and insurance claims, leading to higher rates.

Comprehensive Claims

Depending on the insurance company and the state, filing a comprehensive claim for incidents beyond the driver's control, such as car theft, vandalism, or weather-related damage, may result in an increased insurance rate.

Address Changes

Changing the address where a vehicle is typically kept (garaged) can lead to a mid-policy rate increase. This is because insurance rates vary by location, with higher rates in areas that have higher claims, theft, accident, or weather-related incidents.

Adding Vehicles or Drivers

Adding a new vehicle, especially a more expensive or high-value car, can increase insurance rates as these vehicles are more likely to be stolen and cost more to repair or replace. Similarly, adding a new driver, especially a teen or a driver with a poor driving record, can drive up insurance costs.

Age and Gender

While not all states allow the use of gender in pricing auto insurance, it is a factor in many states. Younger and older drivers tend to have higher insurance rates due to their increased risk of accidents. Males typically pay higher rates than females as they are more likely to engage in risky driving behaviours.

Education and Occupation

Some insurance companies quote higher rates to drivers with less education or lower-paying jobs, as they believe there is a link between these characteristics and the risk the driver poses.

Credit Score

In many states, insurance companies consider an individual's credit score when setting insurance premiums. Drivers with poor credit are generally considered higher-risk and are charged higher rates.

Vehicle Choice

The type of vehicle being insured can impact insurance rates, especially if collision and comprehensive insurance are included. More expensive vehicles with premium trim levels or advanced safety features tend to have higher insurance rates as they are costlier to repair or replace.

Inflation and Supply Chain Issues

The rising cost of vehicle repairs and replacement parts due to inflation and supply chain disruptions has contributed to higher insurance rates. Natural disasters and severe weather events have also led to an increase in insurance claims and, consequently, insurance rates.

Liability and collision insurance

Liability Insurance

Liability insurance is a crucial component of motor insurance contracts, and it usually comprises two parts: bodily injury liability and property damage liability. Bodily injury liability covers medical bills and associated expenses when the policyholder causes injuries to someone in an accident. On the other hand, property damage liability covers damages to another person's property, including vehicles and houses. It is important to note that liability insurance covers accidents caused by the policyholder, and the location of the accident, whether on private or public property, does not typically affect this coverage.

Collision Insurance

Collision insurance, on the other hand, covers damage to the policyholder's car due to a crash, regardless of who is at fault. This type of coverage is optional in most states but is recommended, especially for cars with higher value and newer models. Collision insurance can be particularly important in accidents on private property, as it can help cover repair costs if your car collides with another vehicle, an object, or a structure. However, collision insurance usually has a deductible, meaning the policyholder must pay a certain amount out of pocket before the insurance coverage kicks in.

Key Differences

The main difference between liability and collision insurance lies in who is covered. Liability insurance protects the policyholder from bearing the full cost of damages caused to others' property or injuries sustained by others in an accident. In contrast, collision insurance protects the policyholder from financial loss due to damage to their own vehicle, regardless of who is at fault. Additionally, while liability insurance is mandated by law in almost every state, collision insurance is typically optional.

Frequently asked questions