Do you have to pay private parking tickets?

While most parking tickets come from public parking lots, private car parks are also out there and able to issue parking tickets to vehicles. But what is a private parking company and what makes private parking tickets different from public tickets? Do you have to pay private parking companies that ticket you? Read on to find out.

What’s the difference between a public and a private parking company?

There always seems to be a bit of confusion when it comes to parking rules surrounding a car park that is considered either private or public. Let's take a look at the difference between the two:

Public car park

A public parking lot has open access to all individuals and vehicles. These are usually owned by the local municipality, but there is no controlled access. The city or police are in charge of enforcing the rules and regulations of the lot and are able to issue a parking ticket to your vehicle. For example, if you park in a disabled space without a visible permit.

Public parking tickets are issued under provincial or municipal authority and are legally enforceable fines. In many provinces, unpaid public tickets can block vehicle registration or driver’s licence transactions until they’re paid.

Private car park

A private car park is one that is either owned by a private company or an individual. These parking lots are meant for the company’s customers, employees or those living there. For example, an underground parking lot in an apartment building.

In a lot of cases, private parking lots are typically monitored and have private access points. However, not all car lots have controlled access. Private lots could either be enforced by the property owner or by a contracted private parking company. Private parking lot “tickets” are not fines under traffic or bylaw rules. They’re typically civil invoices based on contract law. By parking on private property, you’re agreeing to the posted terms and conditions and if the company believes you violated those terms, they may issue a notice asking for payment.

Municipal vs. private parking tickets

Not all parking tickets are the same, so the consequences depend on who issued the ticket and what authority they have to enforce it. Take a look:

What happens if I don’t pay a private parking ticket?

A private parking ticket that is issued by a property owner or private parking company is not the same as a municipal parking ticket. For example, according to Ontario’s official guidance, municipal governments have the power to enforce parking rules and issue tickets that may prevent you from renewing your driver’s licence if they aren’t paid. But private parking companies do not have this enforcement power. Their tickets cannot block licence renewal, vehicle registration or plate sticker transactions.

That said, if you ignore a private parking ticket, the company may attempt to tow your vehicle if you park there again, though this is not guaranteed and that may cost you more than the original parking ticket. Private parking companies can also attempt to recover the money by sending the unpaid invoice to a collection agency. In this case, the collection agency will begin to contact you periodically to collect the debt you owe. They may also choose to pursue the amount through small claims court.

Will private unpaid parking tickets affect your credit score?

Generally, no. Parking tickets from private companies don’t show up on your credit report just because you didn’t pay them. While the company can send any unpaid tickets to collection agencies, they cannot affect your credit score without a court judgment.

In fact, Equifax Canada has confirmed in the past that they do not accept parking ticket fines from collection agencies, which means they can’t affect your credit score just by being sent from an agency. However, if either company takes you to court and wins, the unpaid ticket can turn into a court-ordered debt, which would then be sent to the credit bureaus and may affect your credit score. That said, legal action comes with fees, so it’s often not worth it for companies to pursue low-dollar tickets.

Can I dispute a parking ticket from a private parking company?

In some cases, you are able to dispute tickets issued on private property if you feel you have been wrongfully ticketed. You’ll need to contact the private parking company directly for information on how to dispute the debt issued. Some companies may offer an internal appeal process, while others may require written submissions.

Before you make a dispute, you’ll want to gather any evidence you have that supports it, such as photographs of signs, receipts and proof of payment. However, if you dispute a private parking ticket, the company may still deny your appeal and continue to pursue payment.

How to tell what kind of parking ticket you received

Before you decide whether to pay, dispute or ignore a parking ticket, it’s important to confirm who actually issued it. Private parking notices are often designed to look official, which can make the difference unclear at first glance.

The City of Toronto explains that what many people think of as private parking tickets, especially those that resemble municipal tickets, are civil matters, not official City parking infractions and that if you ever receive one, you should seek legal advice if you’re unsure. If you return to your car to discover a parking ticket under your windshield wiper, ask yourself the following questions:

Who issued it?

Look for the issuing authority. Municipal tickets are issued by a city, town or police service. Private tickets usually list a parking company name or property manager instead.

Where does the payment go?

Official municipal tickets direct payment to a city or provincial portal. Private parking tickets ask you to pay the company directly, often through a separate website or phone number.

Does it reference a municipal bylaw or offence number?

City-issued tickets typically cite a specific bylaw, offence number or municipal code. Private notices usually reference “terms and conditions,” “parking agreements,” or posted signage instead.

Does it mention enforcement through your province’s service provider?

Government tickets may warn about licence or vehicle registration consequences if unpaid. Private parking tickets do not have the authority to trigger these enforcement tools. If you’re still unsure, contact your local 311 to confirm whether a ticket is an official parking violation from your municipality or a private “look-alike” notice.

Protect your vehicle with quality car insurance

Whether you drive a car or motorcycle, protecting your means of transport while you’re on the road or parked in a parking lot is important to prevent you from paying out of pocket for any damages or losses. Any insurance broker will tell you that parking lot accidents are more common than you think! Here’s how BrokerLink can help, no matter what type of affordable car insurance fits your needs:

• Parked car insurance

• Motorcycle insurance

• Commercial car insurance

Questions about how a parking incident or ticket affects your policy? Talk to a BrokerLink insurance broker.

Contact BrokerLink today

Whether you have questions about whether your auto insurance will increase after a ticket or if a parking ticket can affect your insurance, reach out to BrokerLink. Our licensed experts can help answer any questions you may have and even help you review your policy to see if you have the right coverage for your needs.

You can reach us by phone, email or in person at any one of our locations throughout Canada. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. You can also try out our free online quote tool, which can provide you with a competitive quote in just minutes!

Disclaimer: This article provides general information only and is not legal advice. As rules and enforcement powers vary by province and municipality, always confirm with your local authority.

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