Parking Lot Accidents in Ontario: What to Do and Who's Liable

Reviewed by Michelle Bragg, VP Personal Lines, RIBO Licensed

What to Do After a Parking Lot Accident in Ontario

A parking lot accident in Ontario requires immediate action: stop your vehicle, check for injuries, exchange information with the other driver, document the scene with photos, and report the collision to your insurance company within seven days. If the other driver leaves without providing information, report it to police immediately—hit-and-run rules apply even in parking lots.

Parking lots are busy places. Between distracted drivers reversing out of spots, pedestrians weaving between cars, and confusing right-of-way rules, it's no wonder collisions happen. If you've been involved in a parking lot accident in Ontario, you're likely wondering what happens next—and who's going to pay for the damage.

The good news? Most parking lot accidents are straightforward to resolve once you understand the rules. This guide walks you through everything you need to know: what to do in the first five minutes, who's at fault when both cars are moving, how to document damage properly, and which insurance coverage applies.

This content is for informational purposes only. Insurance coverage and liability determinations vary by policy and circumstance. Consult a licensed insurance broker for advice specific to your situation.

Step 1: Stop and Assess the Situation

The moment you realize a collision has occurred, stop your vehicle immediately. Moving your car before assessing the situation can complicate liability determinations later.

Check for injuries first. If anyone is hurt, call 911 right away. Even minor injuries should be evaluated by medical professionals—some symptoms don't appear until hours or days after an accident.

If the collision involves property damage only and no injuries, you still have legal obligations under Ontario's Highway Traffic Act. Yes, that law applies to parking lots, too.

When to Call Police

According to the Financial Services Regulatory Authority of Ontario (FSRA), you must report a collision to police if:

• Anyone is injured or killed
• Combined damage to all vehicles exceeds $2,000
• A driver appears impaired
• A driver fails to remain at the scene
• A vehicle involved is government-owned

If none of these conditions apply, you typically don't need to call the police. However, you still must report the collision to your insurance company within seven days.

Step 2: Exchange Information

If the other driver is present, exchange the following information:

• Full name, address, and phone number
• Driver's licence number
• Insurance company name and policy number
• Vehicle make, model, colour, and licence plate
• Contact information for any witnesses

Be polite but avoid admitting fault or apologizing excessively. Phrases like "I'm so sorry, I didn't see you" can be interpreted as an admission of liability. Stick to the facts.

If you're worried about how this might affect your rates, read our guide on factors that affect car insurance to understand what insurance companies consider when calculating premiums.

Step 3: Document the Scene

Your phone is your best friend here. Take as many photos as possible:

• Damage to all vehicles involved
• The position of the vehicles immediately after the collision
• Skid marks, debris, or fluid spills
• Traffic signs, parking lot layout, and painted lines
• Weather and lighting conditions

If there are security cameras nearby, ask the property owner for footage. Many retailers and shopping centres maintain surveillance systems that can provide crucial evidence.

Write down your own account of what happened while it's fresh in your mind. Include the time, location, and what you were doing immediately before the collision. This written record can be invaluable when filing your claim.

Who Is at Fault in a Parking Lot Accident in Ontario?

Fault determination in parking lots follows specific rules outlined in Ontario Regulation 668 under the Insurance Act. These rules apply regardless of whether the collision occurs in a private parking lot or on a public road.

Common Scenarios and Fault Allocation

Both vehicles backing up: If two vehicles are reversing and collide, both drivers are typically assigned 50% fault. Neither driver had the right of way.

One vehicle moving, one parked: The moving vehicle is 100% at fault. If you hit a legally parked car, you're responsible for the damage, even if you claim you didn't see it.

Both vehicles moving forward in a lane: The driver who fails to yield is at fault. If you're both driving through the parking lot and one vehicle enters an aisle from a parking spot, the driver leaving the spot must yield to through traffic.

Exiting a parking spot: If you're backing out of a spot and hit a vehicle driving through the lane, you're typically 100% at fault. Drivers in parking spots must yield to vehicles already in the driving lane.

Opening a door into traffic: If your door strikes another vehicle, you're at fault. Always check your mirrors and surroundings before opening your door in a parking lot.

These rules aren't always black and white. When both drivers share responsibility, your insurance company will review the evidence and assign a percentage of fault based on the specific circumstances.

For more on how insurance companies handle at-fault collisions, see our article on what to do after a car accident.

Hit-and-Run Parking Lot Accidents in Ontario

You return to your car and find a dent, a scrape, or a shattered taillight—but no note, no contact information, and no witnesses. Unfortunately, hit-and-run parking lot accidents are common in Ontario.

Here's what to do:

1. Report it to the police immediately. Even though it's a parking lot, failing to remain at the scene of a collision is a criminal offence in Canada. Police may be able to locate the other driver through witness statements or surveillance footage.
2. Document everything. Take photos of the damage and the surrounding area. Look for paint transfer or debris that might help identify the other vehicle.
3. Check for witnesses or cameras. Ask nearby businesses if their security cameras captured the incident. Provide this information to the police and your insurance company.
4. Report it to your insurance company. You have seven days to report the collision. Even if you don't plan to file a claim, reporting it protects your rights if the damage turns out to be worse than you thought.

What Coverage Applies?

In Ontario, parking lot accidents where the other driver cannot be identified are typically treated as not-at-fault collisions under your comprehensive coverage, as long as you report the incident to police. If you don't report it to police, your insurance company may classify the claim as at-fault collision coverage instead.

According to the Insurance Bureau of Canada (IBC), comprehensive coverage protects against damage from incidents beyond collisions, including vandalism, theft, and hit-and-run accidents where the at-fault driver cannot be identified. This distinction matters because not-at-fault claims typically don't affect your premiums the same way at-fault collision claims do.

Not sure what coverage you have? A BIG broker can review your policy and explain exactly what's covered. Learn more about what car insurance covers in Canada.

No-Contact Parking Lot Collisions in Ontario

What if another driver causes you to swerve or brake suddenly, and you hit a parked car or a barrier—but the other driver never actually touched your vehicle? This is sometimes called a "phantom vehicle" or no-contact collision.

In Ontario, you can still file a claim, but you must meet specific requirements:

• You must report the incident to police as soon as possible
• You must be able to provide a detailed description of the other vehicle (colour, make, model, licence plate if possible)
• You must have collision coverage on your policy

If you meet these conditions, your collision coverage may apply. However, because the other driver cannot be identified, you'll be assigned 50% at-fault or higher depending on the circumstances.

No-contact collisions are difficult to prove, which is why dashcam footage can be incredibly valuable. If you don't have a dashcam yet, consider installing one. Many insurance companies offer discounts for vehicles equipped with dashcams or telematics devices that record driving behaviour. Read more about how telematics can impact your car insurance.

Does Insurance Cover Parking Lot Accidents in Ontario?

Yes, but the type of coverage that applies depends on the circumstances.

Collision Coverage

Collision coverage pays for damage to your vehicle when you're at fault, regardless of where the collision occurs. If you back into a pole, scrape another car while parking, or collide with another vehicle in a parking lot, collision coverage handles the repairs minus your deductible.

Keep in mind that filing an at-fault collision claim will likely increase your premiums at renewal. Depending on the cost of repairs and your deductible, it may be cheaper to pay out of pocket. A BIG broker can help you weigh the pros and cons.

Comprehensive Coverage

Comprehensive coverage applies to incidents that aren't collisions, including:

• Hit-and-run accidents where the at-fault driver can't be identified (and you've reported it to police)
• Vandalism or deliberate damage to your vehicle
• Theft or attempted theft
• Falling objects, like tree branches or shopping carts

Comprehensive claims are typically not-at-fault, meaning they have less impact on your premiums than collision claims.

Liability Coverage

If you're at fault in a parking lot accident, your liability coverage pays for damage to the other driver's vehicle and any injuries they sustain. Ontario requires a minimum of $200,000 in third-party liability coverage, but most drivers carry $1 million or more.

Liability coverage also applies if you hit a parked car and the owner isn't present. You're legally required to leave a note with your contact and insurance information. Failing to do so is considered a hit-and-run, which can result in criminal charges, licence suspension, and a denied insurance claim.

For a deeper dive into coverage types, check out our guide on optional auto insurance coverages.

How Parking Lot Accidents Affect Your Insurance Rates

Any at-fault collision, including those in parking lots, can increase your premiums at renewal. According to Preszler Injury Lawyers’ article on How Do Accidents Impact Car Insurance in Ontario, Ontario drivers involved in a single at-fault collision can see an average premium increase of 20% to 50%, depending on their driving history and insurance company.

However, not all parking lot accidents are treated equally:

• Not-at-fault collisions (like hit-and-runs reported to police) typically don't affect your premiums.
• 50/50 fault collisions may result in a smaller premium increase than 100% at-fault claims.
• Minor at-fault collisions under a certain dollar threshold may be forgiven if you have accident forgiveness coverage.

To learn more about how insurance companies calculate fault, read our article on speeding tickets and car insurance in Ontario. Many of the same principles apply to collision claims.

How to Prevent Parking Lot Accidents

The best way to protect your insurance rates is to avoid accidents altogether. Here are some practical tips:

• Slow down. Parking lots have speed limits for a reason. Most collisions occur because drivers are moving too fast to react.
• Avoid distractions. Put your phone away and focus on your surroundings. Pedestrians, shopping carts, and other vehicles can appear suddenly.
• Use your mirrors. Check your blind spots before reversing or changing lanes.
• Signal your intentions. Use your turn signals even in parking lots so other drivers know where you're going.
• Park in less crowded areas. Walking a few extra metres reduces your risk of door dings and tight-space collisions.
• Install a backup camera or parking sensors. These tools can help you spot obstacles you might not see in your mirrors.

For more tips on staying safe behind the wheel, see our guide on safe driving tips.

Frequently Asked Questions

Do I need to report a parking lot accident to police in Ontario?

You must report a collision to police if anyone is injured, combined damage exceeds $2,000, a driver is impaired, or someone fails to remain at the scene. If none of these apply, you don't need to call the police—but you still must report the collision to your insurance company within seven days.

Who is at fault when two cars are backing up in a parking lot in Ontario?

When two vehicles are reversing and collide, Ontario's fault determination rules typically assign 50% fault to each driver. Neither driver has the right of way when backing up, so responsibility is shared equally.

Does a parking lot accident affect my insurance rates in Ontario?

Yes, if you're deemed at fault. At-fault parking lot collisions are treated the same as any other at-fault claim and may result in a premium increase of 15% to 25% at renewal, depending on your driving history and insurance company.

What if someone hits my car in a parking lot and drives away?

Report it to the police immediately and document the damage with photos. If you report the hit-and-run to police, your comprehensive coverage typically applies and the claim is considered not-at-fault. If you don't report it, your insurer may classify it as an at-fault collision claim.

Do I need collision coverage for parking lot accidents in Ontario?

Collision coverage is optional in Ontario, but it's the only coverage that pays for at-fault damage to your own vehicle. If you're at fault in a parking lot accident and don't have collision coverage, you'll pay for repairs out of pocket.

Can I be charged with leaving the scene if I don't leave a note after hitting a parked car?

Yes. Failing to leave your contact and insurance information after hitting a parked car is considered a hit-and-run under the Criminal Code of Canada. You can face criminal charges, licence suspension, and fines up to $5,000.

Been in a Parking Lot Accident? A BIG Broker Can Help

Parking lot accidents are stressful, but you don't have to navigate the claims process alone. Whether you're dealing with a hit-and-run, a disputed fault determination, or questions about which coverage applies, a BIG broker can review your policy, explain your options, and help you file your claim correctly.

Get started with a car insurance quote today, or contact a BIG broker to discuss your coverage.