What Is Property Damage Liability Insurance?
If you cause an accident, your seguro para autos
has two types of liability coverage that can help protect you:
Many states require you to carry these policies to help cover damage and injuries you cause.
To learn more, let’s take a closer look at the property damage liability definition.
What Does Property Damage Insurance Cover?
Property damage liability insurance, also known as property damage insurance, can help pay for repairs if you destroy another person’s belongings, like their:
This means that property damage insurance can help if you:
Turn your vehicle into a friend’s driveway too quickly and hit their mailbox
Crash into a storefront after putting your car in “drive” instead of “reverse”
Rear-end another car while you’re in traffic
This insurance can help cover the cost of repairs up to your policy limit. It’s also important to be aware that this coverage doesn’t pay for damage to your own car. That’s why you’ll need collision coverage.
Property Damage Insurance Requirements by State
To make sure you’re fully protected, you’ll want to get the right amount of property damage insurance. In fact, most states have a minimum amount for liability coverage. But you may want more than that, because you’ll have to pay out of pocket for repairs that exceed your policy limit.
Not sure how much your state requires? See what minimum limits you need, according to the Insurance Information Institute (III):
Also keep in mind that your state may require other types of coverage on your auto policy, like medical payments. That’s why it’s a good idea to check your state’s car insurance
laws to make sure you have the right coverage in your plan.
How Much Liability Coverage Do I Need?
To figure out how much liability insurance you need, think about the total value of your personal assets. You’ll want to choose at least that much in coverage to protect your financial well-being if you’re at fault in a car accident. You can also increase your protection on the road by adding other types of liability car insurance to your policy, like:
How Much Does Property Damage Liability Cost
If you live in an area with more drivers, your liability cost will likely increase. This is because there’s a higher chance you’ll be in an accident where you’ll need physical damage insurance
. Also, if you choose a higher coverage limit than your state’s minimum requirement, this can increase your rate. It’s also important to note that the amount you drive impacts your premium price.
How Do You File a Property Damage Claim?
Don’t forget that this coverage only pays for damage to someone else’s property. So, if you hit another car you should exchange information with the other driver, including the name and contact number of your insurance company, along with your policy number.
The owner of that vehicle can then file a claim through your insurer. And your insurance company will work with the other driver to pay the cost to repair or replace their car.