When we think about a car crash, the first image that comes to mind is usually a city street, a freeway, or another public road. But what happens if the crash takes place in a parking lot, a driveway, or on a private road? Does car insurance cover accidents on private property? In California, it does. Car insurance generally covers accidents that occur in private locations. However, there can be important differences in coverage and liability, which we’ll explain—along with other key details—in this original article by Megeredchian Law.
If you have been involved in a car accident and want to seek compensation, it is essential to hire the most experienced and skilled car accident lawyers in California. Megeredchian Law brings nearly two decades of proven experience in securing maximum compensation for clients. We know how insurance companies operate—and how to beat their tactics. Call us today at (866) 359-0807 to schedule a free consultation. Speak directly with an attorney, gain peace of mind, and pursue the full settlement you are legally entitled to.
How Does Car Insurance Cover Accidents on Private Property in California?
What Makes Private Property Accidents Different
Unlike public road crashes, private property accidents (parking lots, driveways, gated communities) often lack:
- Clear traffic signals or right-of-way rules
- Police involvement (unless injuries or criminal conduct occur)
- Witnesses or reliable documentation
This makes proving fault and building a strong claim more challenging.
Coverage That Applies on Private Property
Instead of breaking coverage into standard policy parts (liability, collision, etc.) like everyone else, present them grouped by “Who or What Gets Protected”:
- The Other Driver & Their Passengers → Covered by your liability insurance if you’re at fault.
- Your Own Vehicle → Protected under collision coverage, even if you hit a pole, fence, or garage door.
- You and Your Passengers → Paid for by Medical Payments (MedPay) coverage if included in your policy.
- When the Other Driver Has No Insurance → UM/UIM coverage steps in to pay for your damages.
The Role of the Property Owner
Insurance isn’t always the only source of recovery. If unsafe property conditions—poor lighting, broken gates, lack of signage, potholes—played a role, the property owner could share liability under California premises liability law.
The Claims Process in California (2025)
Even on private property, insurers must:
- Investigate your claim fairly and in good faith.
- Evaluate liability even without a police report.
- Consider all available evidence (photos, surveillance footage, witness statements).
If disputes arise, you may need a lawyer to negotiate with insurers or pursue a claim against the property owner.
Key Takeaway
Your insurance generally covers private property accidents the same way as public road accidents—but proving fault can be harder. Knowing which parts of your policy apply, and when property owner liability comes into play, is critical to getting full compensation.
Common Claim Scenarios on Private Property (with Estimated Settlement Ranges)
1. Parking Lot Fender Bender
Scenario: Two vehicles back out at the same time and collide in a crowded lot. Limited visibility and no witnesses make fault unclear.
Estimated Settlement Value: Usually considered a minor accident, typically around $5,000 to $15,000 in California.
How Does Car Insurance Work to Make a Claim?
- Insurers investigate fault using available evidence (photos, possible security footage).
- Liability coverage may apply if you are found at fault.
- Collision coverage repairs your own car, subject to your deductible.
- Shared fault may result in split liability.
2. Driveway Accident with a Guest
Scenario: A visitor accidentally reverses into your parked car in your driveway, causing vehicle or property damage.
Estimated Settlement Value: Often falls between $10,000 and $25,000, depending on repair costs and any related injuries.
How Does Car Insurance Work to Make a Claim?
- The guest’s liability insurance is usually primary.
- If their policy is insufficient, your uninsured/underinsured motorist coverage may help.
- If you cause damage to your own property (such as your garage door), your collision coverage applies.
3. Hit-and-Run in a Private Garage
Scenario: You return to your car in an apartment garage to find it damaged, but the other driver fled without leaving information.
Estimated Settlement Value: Hit-and-run cases in California typically settle between $10,000 and $75,000, depending on the extent of damage and injuries.
How Does Car Insurance Work to Make a Claim?
- Document the scene thoroughly with photos and notify building security if available.
- Uninsured motorist coverage can pay for vehicle repairs and medical costs.
- Collision coverage may also apply, though you will pay your deductible.
4. Accident Caused by Property Conditions
Scenario: A crash occurs due to unsafe property conditions, such as potholes, poor lighting, or missing signage in a shopping center lot.
Estimated Settlement Value: These cases often range between $10,000 and $50,000, with minor incidents closer to $5,000 to $25,000.
How Does Car Insurance Work to Make a Claim?
- Your collision coverage handles your vehicle repairs.
- If the property owner’s negligence contributed, you may also pursue a claim against them.
- Strong evidence (photos, witness statements, maintenance records) is crucial.
5. Private Road Crash Between Neighbors
Scenario: Two cars collide head-on on a narrow private road inside a gated community, where no traffic signs exist and fault is unclear.
Estimated Settlement Value: Settlements for moderate injury cases typically range from $25,000 to $75,000, depending on damages.
How Does Car Insurance Work to Make a Claim?
- Insurers rely on photos, statements, and circumstantial evidence to determine liability.
- Each driver’s collision coverage can repair their vehicle while liability is sorted.
Additional Insight: Settlement Trends in California
- Minor injury claims often average around $7,000 to $10,000.
- Moderate injury cases average around $50,000.
- Severe injuries can exceed $1 million.
- Most accident settlements in California fall between $5,000 and $25,000, with an overall average near $30,000.
Disclaimer
These settlement figures are general estimates only. Actual case outcomes in California depend on many factors, including the severity of injuries, property damage, available insurance coverage, liability disputes, and the quality of legal representation. For advice specific to your situation, consult an experienced car accident attorney. Call Megeredchian Law at (866) 359-0807 to schedule a free consultation. We will evaluate your case within minutes. If you qualify, a skilled local California car accident attorney will be assigned to your case. They will fight for maximum compensation to cover vehicle repair or replacement, property damage, medical expenses, lost wages, and more.