The average property damage claim is normally a few thousand dollars, and you may not need to carry that much for liability insurance. However, in the event of an accident, it’s best to have higher limits on your policy so you can be sufficiently protected when things go wrong. So how much property damage liability should I have?
In 2010, the average property damage claim was $2,881. However, over the last ten years, these claims have nearly doubled and are lower than the minimum amount for every state. Even though getting more coverage to be extra careful is inexpensive-it can provide additional support following an accident that results from costly car damages. The average property damage claim in 2019 was $4,525 then.
How do you file a property damage liability claim?
Since property damage insurance covers damages you cause to someone else’s property, often, an individual will never need to file a claim against their policy. Instead, claims are typically filed as third-party car insurance like so the person at fault is liable for repairs on your or another person’s damaged vehicle.
The limits on property damage coverage dictate how much an insurance company will pay out due to any single accident. For example, suppose your car is totaled in an accident, and you have only $250 worth of property damages coverages with another person’s vehicle. In that case, they can sue you for whatever amount their vehicle was damaged by, even though that might be more than what you are insured for.
In an auto accident, collision insurance will take care of any damages to your vehicle. However, this is optional and often costly to maintain- so if you don’t carry it already, we would highly recommend reconsidering adding coverage now!