If you own a vehicle, chances are you already have car insurance. But did you know that standard car insurance policies only cover damage to other people’s property, not your own? In this article, we’ll dive into what property damage liability insurance is, why you might need it, and how it works.
What Is Property Damage Liability Insurance?
Did you know about property damage liability insurance for cars? It helps pay for damage you cause to other people’s property while driving.
This can include damage to another vehicle, a building, or any other property that is not your own.
For example, let’s say you accidentally swerve off the road and hit a fence.
Property damage liability insurance would help cover the cost of repairing or replacing the fence.
Why Might You Need Property Damage Liability Insurance?
The minimum amount of coverage required varies by state, but it’s usually a relatively low amount. For example, in California, the minimum coverage required is $5,000, while in Michigan, it’s $10,000.
Even if property damage insurance isn’t required in your state, it’s still a good idea to have it.
Accidents can happen to anyone, and the cost of repairing or replacing someone else’s property can be expensive.
Without property damage insurance, you could be held personally liable for those costs.
How Does Property Damage Liability Insurance Work?
If you’re involved in an accident and you’re found to be at fault, your property damage liability will help cover the cost of repairing or replacing the other person’s property.
Let’s say you hit another car while driving. The other driver’s car has $10,000 worth of damage.
If you have property damage liability insurance with a $10,000 limit, your insurance will cover the entire cost of the damage.
However, if the damage exceeds your coverage limit, you’ll be responsible for paying the remaining amount out of pocket.
It’s important to note that property damage liability only covers damage to other’s property, not yours. If you want coverage for damage to your own vehicle, you’ll need to add collision coverage to your car insurance policy.
Why It Is Important To Take A Full Coverage Policy?
When it comes to car insurance, it can be tough to know what you need and what you don’t.
As I said before, property damage liability coverage won’t pay for damage to your own vehicle. So, if you’re in an accident and it’s your fault, your property damage liability coverage will pay for the other driver’s car.
That’s where a full coverage policy comes in.
It includes liability coverage for other people’s property and medical expenses, as well as coverage for your own vehicle.
While there’s no one-size-fits-all policy, a full coverage policy can give you peace of mind knowing that you’re protected if something happens to your car.
So, What Exactly Is Included In A Full Coverage Policy?
Well, it typically includes bodily injury liability, property damage liability, personal injury protection, uninsured motorist coverage, comprehensive coverage, and collision coverage.
It’s important to remember that every policy is different, and you should always read the fine print to understand exactly what is and isn’t covered.
But, a full coverage policy is a great option for drivers who want comprehensive protection for both themselves and their vehicles.