Shadow chancellor Ed Balls has been ordered to pay more than £1,000 in fines and has had five points added to his licence.
The Morley and Outwood MP avoided a driving ban after appearing at Leeds Magistrates Court accused of failing to stop after a minor collision.
A district judge said the incident, in Morley, was "at the lower end of the scale of seriousness" and rejected the option of a total driving ban.
The former schools secretary touched the bumper of another car as he was moving out of a car park next to the Labour Unity Club, in Morley in April, causing minor damage.
He already had three points on his licence after he went through a red light in central London in 2012.
Mr Balls did not attend the hearing.
The MP for Morley and Outwood and Shadow Chancellor Ed Balls has been issued with a court summons following an incident in which he allegedly hit a parked car in Leeds.
His office has told ITV News that he does not have to attend court and intends to respond in writing. Mr Balls has previously apologised to the owner and said he wasn't aware any damage had been caused.
Ed Balls has confirmed he will not fight prosecution for failing to stop after driving into another car in West Yorkshire.
The shadow chancellor has been informed that police are to charge him over the incident in Morley last month.
Writing on his blog, Mr Balls indicated that he expected to be punished with penalty points on his licence - but reiterated that he was unaware he had damaged another vehicle:
"I'd been turning our car round in a tight spot in the narrow private drive beside the Labour rooms in Morley where I park all the time."
"Another car was parked close by and I was aware the two bumpers touched. But I had no idea any damage had been done until the police got in touch a week later.
"As soon as I was aware any damage had been done, I immediately took full responsibility for any damage caused. I've been in touch with the owner to apologise for the inconvenience and to pay for the repair to the marks on the parked car's bodywork.
"The police have to do their job. Once I'd confirmed I knew the bumpers had touched, their standard approach is to proceed to charge as they expect people to stop and check.
"I fully understand and accept that, so of course I will be accepting the charge. While I had no knowledge at the time that any damage had occurred, I accept their view that I should have checked.
"Getting points on my licence will be a blow - but that's the way it works."
Police have launched an investigation into how shadow chancellor Ed Balls drove off after colliding with a parked car without informing the owner.
The Labour MP for Morley and Outwood has since apologised to the vehicle's owner following the incident in his constituency earlier this month, and stressed he did not know any damage had been caused to the black Peugeot 306.
West Yorkshire Police confirmed officers were making inquiries into a "fail to stop collision" on April 5.
In a statement, Mr Balls said: "Ten days ago, I turned our car round in a tight spot in the private drive beside the Labour rooms in Morley.
"There was a stationary car parked close by.
"The turn took five or seven points and I was aware that at one point the bumpers of the two cars touched.
"I park there all the time in what is a relatively narrow drive.
"But until I was contacted the following Wednesday, I had no awareness at all that there had been any damage to the other car.
"As soon as I was made aware of what had happened, I took full responsibility for any damage caused.
"I have written to the owner of the other car to say I was terribly sorry and to reimburse the owner concerned for the necessary repair.
"I have contacted our insurance company in the usual way."
According to a report in the Yorkshire Post, the collision was caught on CCTV camera and Mr Balls' registration number was traced after the Peugeot's driver noticed damage the following day.
Enquiries are continuing.
Shadow chancellor and MP for Morley and Outwood, Ed Balls, appeared in the House of Commons dressed as Santa for a vote on the Government's banking reform Bill.
Mr Balls arrived in the chamber in a full Father Christmas outfit, complete with boots, red hood and what looked like a pillow stuffed under his coat to make him fatter.
Labour colleagues Barry Gardiner, MP for Brent North, and Yasmin Qureshi, MP for Bolton South East, were seen patting the shadow chancellor's stomach as they voted on Labour proposals to bring forward a cap on payday lenders from January 2015 to next October.
Shadow Chancellor and West Yorkshire MP Ed Balls has admitted running a red light as he drove home through London after work.
The Morley and Outwood MP was caught by a traffic camera after a late night sitting in parliament.
It's his second offence. Earlier this year he was fined for driving six miles above the 50 mph limit on the M62 near his home in West Yorkshire.
Shadow Chancellor Ed Balls says it was "bang to rights" that he paid the price for speeding in West Yorkshire.
The Morley MP said he was going 56mph in a 50mph zone on the motorway in his constituency when he triggered a camera on the M62.
Joking that he had been going "too far, too fast" - a favourite attack line against the coalition's austerity measures - Mr Balls said he had paid a fine and attended a speed awareness course rather than accept penalty points.
"Like many local people, I was caught out by the never-ending roadworks on the M62. Pulling on to the motorway at Morley I realised too late that the speed restrictions were still in place," he wrote on his blog.
"I was caught and bang to rights - doing 56 in a 50 mile restriction zone. Going too far, too fast, you might say.
"The course was very professional and actually really worthwhile."
As MPs discuss an inquiry into the banking scandal Shadow Chancellor and Morley and Outwood MP Ed Balls blows a kiss at female Tory MP. You can watch the footage here.