Property Damage Liability Insurance Coverage
What is Property Liability Coverage?
Damage to Other People's Property
Property damage liability insurance covers you against financial loss if you are found responsible for damage to other people’s property (e.g. light poles, fences, another vehicle, etc.) caused by your auto.
Insurance Coverage availability varies by state
Determining Limits for Property Damage Liability
Property damage liability insurance protects you if you are at fault in an accident. If your auto policy has insufficient property damage liability coverage, you could be sued personally. When you’re determining how much property damage insurance coverage is appropriate for you, it’s important to consider all the assets you want to protect.
When Property Damage Liability Insurance Comes in Handy
Let’s say you're driving home on a rainy afternoon when suddenly, the car in front of you brakes. You're unable to stop in time and end up slamming right into the other car’s rear end.
The car you hit is an expensive, luxury sedan. The repair bills are high – and you're responsible for paying for the damages. Luckily, you have enough property damage liability insurance coverage to pick up the tab. If you didn’t have enough coverage, you'd have to foot the bill out of pocket.