Auto Property Damage Liability Insurance Coverage

What Is Property Damage Liability Insurance

Property damage liability insurance helps to cover the costs if you damage other people’s property (e.g., car, houses, offices, stores, trees, fences, lamp posts, telephone poles, etc.) with your car. The availability of property damage auto liability insurance coverage varies by state. There are two types of liability coverage on your car insurance: Bodily Injury and Property Damage cover your legal liability if you are at fault in an accident that involves injury to others.
 

What Does Property Damage Liability Insurance Cover Versus Collision Coverage?

Property damage liability insurance helps cover the financial costs you may incur if you get into an auto accident and are found responsible for the damage to someone else’s property. The amount of coverage available per accident is based on the coverage amount you select in the policy. Property damage liability auto coverage helps cover the cost for repairs to the other person’s vehicle if you cause a car accident.
 
For example, while leaving a parking lot you back your car into a parked car. Your property damage liability insurance will help to cover the costs of damages to the car you hit.
 
It also helps to 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.
 
For example, you turn into a friend’s driveway too quickly and hit their mailbox, causing extensive damage. Your property damage liability insurance helps to cover the damages to the mailbox and any other objects damaged by your car.
 
Property Damage Liability coverage does not cover damage to your own vehicle. You may want to consider collision insurance coverage, to help cover the cost to repair your own vehicle.
 
For example, you rear end the car in front of you when it stops suddenly. Your Property Damage Liability Insurance helps cover the damage done to the car in front of you and your Collision Insurance helps cover the damage done to your car.
 
Property Damage Liability insurance also helps cover the costs of damages if you crash into objects you do not own; such as fences, mailboxes, houses and other structures.
 
For example, you get distracted and crash into a nearby fence. Your Property Damage Liability Insurance will help cover the damages done to the fence. Your Collision coverage can help cover the damage to your car.
 
In addition to damaging objects, say you roll your car over in a single car accident. Your Collision Insurance would help to pay for the damages.
 

Determining Your Limits for Property Damage Liability Insurance Coverage

Property Damage Liability insurance protects you from financial loss if you are at fault in an accident. Most states require property damage liability and bodily injury coverage. If your auto policy has insufficient property damage coverage, you could be sued personally.
 
Minimum coverage limits vary by state limits. A limit is the maximum amount your insurer will pay, per accident, for a covered accident.
 
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. It is important to keep in mind your property damage insurance coverage limits when selecting your policy. A limit is the maximum amount your insurer will pay, per accident, for a covered claim. Any expenses from an accident that are above the policy limit are your responsibility.
 

What Is a Property Damage Claim?

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.
 
To ensure that repair costs are covered by insurance you need to submit a claim. You make an auto claim, through your insurance provider. Claims are often submitted online or over the phone or online.
 
Your Property Damage Liability Insurance coverage helps 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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Property Damage

Learn more about property damage in this video.