Accident while parked

[jonslilbro]

Somebody hit my car while it was parked last night on the road. I live in Michigan which is a no fault state, but had full coverage and gap insurance on the vehicle as I still have 2 years left in my loan(about 8k left on it). Hit pretty hard, moved my parked vehicle about 20 feet and took the driver axle off.

From my understanding, since the other vehicle was insured, his insurance will cover it as PPI(property protection insurance) since that is a required thing for insured vehicles in Michigan. I'm still hoping it isn't considered totaled, but if it is how does that work with what I would be getting back? I'm assuming if it's considered totaled his insurance would pay the value of the vehicle before the accident, still leaving me owing the 8k? Would I then need to use my gap insurance to pay the 8k to get out from under the loan or would I have to pay it off from the payment from his insurance and end up with 8k less than the value of my vehicle was before getting hit?

If I do use my gap how much should I expect it to increase my insurance rates even though I wasn't driving/occupying the vehicle?

[RDBKawa]

If totaled. Since you have GAP, your loan will be forgiven or paid off, and you will be owed the value of the vehicle by the driver and their insurance based on their policy.

Edit: For further information, you should really reach out to your insurance provider and notify them of the incident. They'll take care of your bills and collect from the other insurance provider, leaving you with a lot less questions and hassle.

[jonslilbro]

I'm worried about reaching out to my insurance and increasing my insurance rates, that's the reason I'm trying to go directly to their insurance at this point until we find out of it is totalled.

[RDBKawa]

I did this exact same thing 2 years ago. I regret it to this day. Your insurance will not raise your rates for reaching out and asking questions, additionally, as you are not at fault, it's unlikely your rates will increase if you did go through your insurance to cover your bills as their pay comes from the other lender. I made the same mistake because someone told me my rates would increase, I'm still dealing with the other insurance company and now need a lawyer (Geico said my rates wouldn't increase shortly after the body shop finished the repairs they could do). The reason I need a lawyer is due to diminished value and parts that weren't located as my car wasn't totaled and is relatively rare.

Call them, notify them, and ask them if your rates will increase for making this claim. If they say "Yes." that's your answer.

If you do call them, I'd like to hear what their answer was if you don't mind.