Parking Lot Accidents: What You Should Know

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By Aren Mirzaian
Last updated on March 04, 2026

4 minute read

MyChoice follows a strict content review process designed to ensure reliable and unbiased information.

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How to Deal With Parking Lot Accidents at a Glance

  • Parking lot accidents can affect your insurance.
  • Accidents in parking lots must still be reported if damage exceeds about $5,000 in Ontario.
  • Shared fault is common in parking lots. For example, if two drivers reverse at the same time and collide, insurers often assign 50-50 fault.
  • Rear-ending another vehicle in a parking lot is typically considered your fault, just like on a public road.
  • Hit-and-run incidents can leave you responsible for repairs. If the driver cannot be identified, you may need to rely on your collision coverage and pay a deductible.
  • Leaving the scene of an accident is a serious offence. In Ontario, “failure to remain” can lead to $400–$2,000 fines, seven demerit points, and possible licence suspension.
Common Parking Lot Accidents

Do Parking Lot Accidents Affect Insurance?

Yes, insurers treat parking lot accidents the same as any other type of accident. They use the same rules to determine who caused the accident, and if you are found to be at fault, it can affect your car insurance quotes.

What to Do After a Parking Lot Accident In Ontario?

Many people assume that, just because an accident occurs on private property rather than on a public road, you should react differently. However, parking lot accidents should be treated the same as any other car accident.

If you are involved in a parking lot accident, follow these steps:

  • Check for injuries first. If anyone is hurt, call for medical help immediately.
  • Assess the damage. If total damage appears to exceed about $5,000 in Ontario, the accident must be reported to a police Collision Reporting Centre.
  • Exchange information with all drivers involved, including names, contact details, licence numbers, and insurance information.
  • Take photos of the vehicles, damage, licence plates, and the surrounding area.
  • Notify your insurance provider as soon as possible.

If you don’t report the parking lot accident, you can still receive a ticket after, and it won’t be as cheap as a parking ticket.  Also, the other driver can still file a claim with their insurance company and determine that you were entirely or partially at fault for the accident, in this case your insurer may increase your rates without notice.

Who is At-fault in a Parking Lot Accident?

The cause of parking lot accidents is frequently misunderstood. Fault is determined on a case-by-case basis, just like in any other car accident. Due to the variety of factors at play, determining fault in a parking lot accident can be difficult.

Vehicles already travelling in a parking lot lane generally have the right-of-way over vehicles exiting a parking space. This is an important consideration when determining fault. In some cases, one driver is solely at fault, while in others, both drivers share blame.

Common types of parking lot accidents?

The five most common types of parking lot accidents are:

Two drivers back up and hit each other.

When two vehicles reverse at the same time and collide, insurers may assign shared fault depending on the circumstances. The insurance company is most likely to determine that both drivers share fault 50-50.

The driver leaves the parking space and enters the traffic lane.

If both cars are moving, they are likely to share the blame. There is a traffic lane that has the right-of-way in a parking lot. The driver leaving the parking space will bear most of the blame. This could result in a 75-25 split.

The driver backs out and hits a car.

The driver backing out of a parking space is typically considered primarily at fault because they must yield to traffic in the driving lane.

Two cars compete for a parking space, and they collide.

So, both vehicles are moving, but one of them must make a left turn across traffic, whereas the right-turning driver does not have to wait. The left-turning driver should have yielded to oncoming traffic and, as a result, will bear most of the blame in the collision.

Other factors, such as how far each vehicle was into the parking spot and the speed of each vehicle when the parking spot accident occurred, will be required.

The car rear-ends another at a stop sign.

If you collide with a parked car from behind, whether in a parking lot or on the road, you will bear the brunt of the blame. Even if the driver comes to an unexpected stop, the vehicle in motion should have left enough space between itself and the vehicle in front to avoid rear-ending the stopped vehicle.

You are most likely to blame if you hit a pedestrian or cyclist. If you hit a median, curb, shopping cart, or traffic sign, it’s entirely your fault.

Parking Lot Accidents: Hit & Run

A hit-and-run in a parking lot is terrible because if you can’t identify the driver, you’ll be responsible for the repair bill. Let’s analyze both situations.

In the event of a hit-and-run in Ontario, you can rely on your collision insurance, and if you have it, you’ll have to pay a $500 to $1,000 deductible.

If the damage is less than your deductible, filing a claim may not be worthwhile because you would still pay the deductible amount. Your auto insurance provider may classify it as an uninsured auto and assume the fleeing driver lacked insurance, so you won’t have to pay a deductible.

If potentially near security cameras identify the driver, in provinces like Ontario that use Direct Compensation–Property Damage (DCPD), your insurer may cover repairs if another driver is responsible and identifiable.

Proof is how you handle any hit-and-run in a parking lot, so driving away is not a good idea. So, what you can do is to leave a note with your contact information, where you can work the details out afterwards. Otherwise, if you get identified but were judged to have just left the scene, you are considered a “failed to remain”.

Failure to remain at the scene of an accident is punishable by a fine ranging from $400 to $2,000, seven demerit points, license suspension, and a significant increase in your car insurance rates.

Key Advice from MyChoice

  • Always treat a parking lot accident like a regular collision. Exchange information, take photos, and notify your insurance company.
  • Document everything at the scene. Photos, licence plates, and witness information can help determine fault and protect you if a claim is filed later.
  • Consider getting collision coverage. It can help pay for repairs if the other driver leaves the scene and cannot be identified.
By Aren Mirzaian

With over a decade in Canada’s insurance sector, Aren is a leading voice in the industry, providing thought leadership on auto insurance, underwriting innovation, and how technology is reshaping insurance.

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