THURSDAY, OCTOBER 20, 2022
What Is Property Damage Liability?
Property damage liability is a component of auto insurance. Most drivers should have this type of insurance in place. It may be a legal responsibility you have within your state. It’s important to understand when this coverage applies as well as how much you should maintain. Take a closer look at how property damage liability car insurance works.
How Does Property Damage Liability Work?
If you have a wreck, and you cause that accident, you may be responsible for the financial losses you create. After all, it was your fault, and most authorities will label you as at-fault.
When you cause damage to another person’s property, property liability insurance applies. It helps cover the costs of the damage you cause to another party’s belongings. For example, your coverage will help that person pay for their vehicle repairs. Because you are responsible for the losses, if you did not have this coverage, you would have to pay the bill out of your pocket.
What Type of Property Does It Cover?
Property damage car insurance covers most types of property. When your vehicle causes damage to another party’s belongings of any type, this policy may apply. It can usually include:
- Damage to another person’s vehicle
- Damage to the other party’s belongings within the vehicle
- Damage to a person’s real estate or things like fences, mailboxes, and homes
This type of car insurance never covers your vehicle. It is only capable of providing financial coverage to another party’s belongings.
How Much Coverage Do You Need?
The amount of property damage insurance you need depends on several things. Specifically, your state may provide a specific minimum level of coverage.
It is important to meet at least the minimum required property damage liability insurance set by your state. This provides a base level of coverage. It also makes it legal for you to operate your vehicle in that state. Be sure to discuss your specific auto insurance needs with your trusted insurance agent.
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It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional
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