What is Property Damage Insurance?
Property damage auto insurance helps cover the costs if you damage other people’s property (e.g. light poles, fences, another vehicle, etc.) with your car. The availability of property damage auto liability insurance coverage varies by state.
What Does Property Damage Liability Insurance Cover?
Property liability auto insurance helps cover the financial costs you may incur if you get into an auto accident and are found responsible for the damage of someone else’s property. The amount of coverage available per accident is based on the coverage amount you select in the policy. Property damage auto coverage helps cover the cost for repairs to the other person’s vehicle if you cause an auto accident. It also helps cover the cost of damage you caused to others’ property with your vehicle such as places of business, houses and structures like mailboxes and fences.
Determining Your Limits for Property Damage Coverage
Property damage insurance protects you from financial loss if you are at fault in an accident. If your auto policy has insufficient property damage coverage, you could be sued personally. Most states require property damage liability and bodily injury coverage. Minimum coverage limits vary by state limits. When you’re determining how much coverage is appropriate for you, it’s important to consider all the assets you want to protect, and choose a realistic coverage limit that would protect your financial well-being if you were at fault in an auto accident.
When Property Damage Insurance Comes in Handy
In terms of auto insurance, property damage is any type of damage you cause to another person’s property in an auto accident. For example, you may be driving home on a rainy afternoon. Suddenly, the car in front of you stops short. You can’t stop in time and slam into the car. The damage you cause to the other vehicle would be considered property damage. Your property damage auto insurance coverage will help pay for the costs to repair the vehicle that you hit. Property damage liability auto coverage is not exclusive to vehicles, though. It covers all types of property. For example, if your car slid out of control on ice and crashed through a neighbor’s picket fence, your property damage coverage could help cover the cost to repair the fence.
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