Property Damage Liability Insurance
What Does Property Damage Liability Insurance Mean?
Property damage liability insurance is a standard component of car insurance that covers damages caused by an insured driver to another person’s vehicle or property. However, it does not cover repairs to the at-fault driver’s own vehicle, which falls under a separate part of car insurance known as collision coverage. Since this coverage only pays for damage to other people’s property, it helps to understand the difference between comprehensive and collision coverage when deciding what other protection to add to a policy.
Insuranceopedia Explains Property Damage Liability Insurance
Every state mandates that drivers carry property damage liability coverage, but the minimum required amount varies by state. For example, California requires a minimum of $5,000 in coverage, while Texas requires $25,000.
It is advisable for drivers to purchase more than the minimum coverage. In the event of an accident, if the damages exceed the limits of their property damage liability insurance, the driver will be responsible for paying the additional costs out of pocket. State minimums often fall well short of what a single accident can cost, so it pays to look at how much liability insurance you actually need based on the value of your assets and the cars you regularly drive around. Comparing quotes from the best car insurance companies can also help drivers find higher limits at a price close to what they already pay for the bare minimum.
