Property Damage Liability Insurance Definition

    If you cause an accident, your car insurance has basically two types of liability coverage that can help protect you:

    • Property damage liability insurance in order to help pay for repairs if you hit someone’s car
    • Bodily injury liability insurance if you hit some and you need to cover the medical costs.

    Many states need you to carry these policies in order to help cover injuries and damage caused by you. 

    To learn more, let’s take a closer look at the property damage liability insurance definition.

    What Does Property Damage Insurance Cover?

    Property damage liability insurance is also famously known as property damage insurance. It helps you pay for repairs if you damage the belongings of any person, including their:

    • House
    • Vehicle
    • Office
    • Store
    • Trees
    • Lamp posts

    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 the front of a store after putting your car in “drive” instead of “reverse.”
    • Rear-end another car when you are in traffic

    This insurance can help cover the cost of repairs up to your policy limit, which is important for many people. This coverage doesn’t pay for damage to your own car, though- that’s why you’ll need collision coverage!

    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. In addition, other types of liability can be added onto this policy for even more protection on the road, such as:

    • Insurance coverage for the wretched event of someone hitting your car and not having insurance to cover their own damages.
    • Uninsured motorist bodily injury coverage to help you pay the medical bills of you or any other passenger if someone hits you.
    • No-fault insurance helps you cover the medical bills for you or your passengers, no matter who is at fault. Do not forget that PIP coverage is not available in all states.

    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, and the amount of driving can impact how much people pay for their insurance rates.

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    Imelda worked for a decade in finance, in an international Fintech company where she experienced all the best technology and advancement can offer finance companies. This inspired her to create a platform where she may help others who can make good use of sound business ideas that may help businesses flourish.
    Imelda worked for a decade in finance, in an international Fintech company where she experienced all the best technology and advancement can offer finance companies. This inspired her to create a platform where she may help others who can make good use of sound business ideas that may help businesses flourish.

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