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Does Car Insurance Cover Accidents on Private Property?

Published: Sep 27, 2022 in Car Accidents
Cars in a parking lot

Yes, auto insurance does cover car accidents on private property. However, determining whose insurance will cover which damages can be complex. Additionally, you may have other options for getting the compensation you need to cover your losses.

Car Insurance Requirements in Alabama

Alabama has a minimum amount of auto insurance required for all drivers. According to the Alabama Department of Insurance, the minimum auto insurance liability limits are:

  • $25,000 bodily injury per person
  • $50,000 for all bodily injuries per accident
  • $25,000 for property damage per accident

This is commonly referred to as 25/50/25 coverage. Liability insurance only covers damages to other parties if you are at fault in an accident.

Alabama does not require you to have insurance to cover your own damages if you are at fault. However, it is always a good idea to opt for as much insurance coverage as possible.

What Insurance Covers Accidents on Private Property?

Auto insurance does not distinguish between damages on public vs. private property. It is only interested in fault. Thus, any insurance you purchase covers you on private property, such as parking lots and driveways.

Liability Insurance on Private Property

Liability insurance covers damages to another car and injuries to other people, even if it occurs on private property. If the other party can prove that you are at fault, your auto insurance policy should cover the damages up to your policy limits.

Similarly, if the other driver is at fault, their liability insurance should cover damages on private property.

Collision Insurance on Private Property

You may have other insurance that will cover your own damages even if you are at fault. For example, collision insurance will cover damage to your vehicle regardless of whether you were at fault. It will cover costs to repair or replace your vehicle.

If you are leasing or financing your vehicle, you are likely required to have collision coverage. Sometimes it is called “full coverage.” This allows the bank or lender who owns the title to the vehicle to recover the car’s value if it is damaged in a crash.

Compensation Without Collision Insurance

If you do not have collision insurance coverage, you may still be able to recover compensation depending on who is at fault.

The Other Driver Is At Fault

If another driver is at fault, their liability auto insurance will cover your damages. If they did not have insurance, you could sue them directly through a personal injury lawsuit.

The Property Owner is At Fault

It is also possible for the private property owner to be at fault for a car accident. For example, if the parking lot owner does not have appropriate signage and frequently has crashes, they may be negligent in failing to maintain the parking lot.

When a private property owner is at fault, their business or homeowner’s insurance may cover the situation. This type of claim can become complex quickly, so you should always consult with an experienced car accident lawyer who understands Alabama laws and can apply them to your case.

When Multiple Parties Are At Fault

In many cases, more than one party is responsible. It’s important to name all potentially negligent parties in a lawsuit or claim. If you fail to name anyone you may forfeit your right to total and fair compensation.

Contact Belt, Bruner, & Barnett P.C. for Help

If you were involved in a car accident on private property, it’s essential to gather information quickly. Evidence can disappear, and eyewitnesses may forget details.

When you contact Belt, Bruner, & Barnett P.C., we will immediately begin an investigation to support your case. Call us today at (205) 933-1500.