Unless you live in New Hampshire or Virginia, it is legally required for you to have car insurance if your car uses public roads (even if just for the sake of finding parking). And if you have car insurance, then you have liability insurance.
Liability insurance is the most basic form of automotive coverage. If you are at fault in an accident, liability coverage helps to pay the expenses for the damage that you have caused to others; however, liability does not cover the price of damage caused to you.
Liability coverage has two aspects: Bodily injury insurance and property damage insurance. Property damage coverage is very straightforward and easy to understand, as you will see in the rest of this article.
What Is Property Damage Liability Car Insurance?
Property damage liability car insurance covers the cost of property that is not yours and is damaged during an accident that you caused. Unlike bodily injury insurance, property damage liability insurance does not cover injuries suffered by other drivers, passengers or pedestrians. It applies only to material property.
What Is Covered by Property Damage Liability Car Insurance?
The most commonly covered items that fall under the umbrella of property damage insurance are cars. If you are the responsible driver in a collision, your property damage liability car insurance will cover the damage done to the other vehicle or vehicles involved in the accident.
However, property damage insurance doesn’t just cover vehicles — it covers all types of property. If you are in an accident and drive onto someone’s property, damaging their lawn or their home, then that will be covered through your property damage liability insurance as well.
How Much Does Property Damage Liability Car Insurance Cover?
There is no standard coverage limit for property damage liability insurance. Your coverage depends entirely on your policy, your car insurance provider, and your state (states assign minimum financial responsibilities that insurance companies must meet).
To figure out how much your property damage liability car insurance covers, you can either ask your insurance company or check out your plan on your contract, bill, or the insurance provider’s website. Your property damage liability coverage will be listed as a number, which is the maximum amount that your insurance company will pay for property damage for any given accident.
For instance, if you are at fault in an accident involving two other vehicles, and your property damage car insurance is worth $30,000, then your policy will cover up to $30,000 total in damage, not $30,000 per car. If the total cost of property damage exceeds your coverage, then you will have to pay the rest out of pocket.
Property damage liability car insurance is a critical aspect of auto insurance, as it helps protect you and keep you from going deep into debt if you are the responsible driver in an accident. Thankfully, it’s a standard part of all insurance plans, so as long as your vehicle is insured, you have property damage liability coverage.