Property Damage Liability Coverage

What is property damage liability?

Property damage liability coverage pays for the damages to the car and possessions of the other party in an accident in which you are at fault. This includes labor and parts costs associated with car repair, damages or replacement for valuables inside the car, and repairs to stationary objects you may hit (for example, a neighbor's mailbox or a tree).

Who needs property damage liability?

Everyone. Anyone who owns a car should take responsibility for the costs of damages in property to others that they incur. Unless you have a fair amount of money tucked away in a bank account for just such an emergency, it is well worth it to invest in property liability insurance. We all make mistakes – it is part of what makes us human. Paying for those mistakes is what makes us honorable.

State governments are big believers in honor as far as property damage liability insurance is concerned. Many of them require you to purchase minimum amounts of coverage, in some cases, as low as $5,000.

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How much property damage liability coverage do you need?

 It makes sense to purchase as much property damage liability coverage as you can afford. Some states require minimum coverage amounts, but should you hit a Mercedes or an RV, chances are that you will still have to go into your pocket in order to pay the full cost of the repairs.

It is recommended that you buy at least $50,000 for every car that you own. For total peace of mind, $100,000 worth of property liability damage is a good amount to be sure that, in the event of an accident, you will not have to deal with the stress of coming up with the money to pay for somebody else's car costs on top of your regular bills.

Does property damage liability cover the costs of damages to my car if another party is responsible and has no car insurance?

No. Property damage liability covers nothing but the damages to the other person's car and property if you get into an accident and, of course, only if the accident is your fault. If the other person does not have car insurance and is at fault in the accident, then they will have to pay for the damages to their car out of their own pocket.

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