When it comes to property damage liability insurance, how much is enough?
Almost every state in the U.S. dictates the minimum property damage liability car insurance coverage you need. This ranges from $5,000 on the lower end in Pennsylvania and California up to $35,000 in Minnesota.
Property damage liability coverage is required in most states as one of two types of liability insurance.
Wondering what property damage liability covers and if it’s the right option for you? Stay with us to learn everything you need to know.
What is Property Damage Liability?
If you cause an accident, you as the policyholder are liable for damage to the other person’s property such as their car or home. This is where property damage liability coverage comes into play.
What Does it Cover? What Does it Not Cover?
When you have property damage liability insurance and get into an accident for which you are at fault, it covers the following:
- damage to the other car or cars caused by the policyholder’s vehicle.
- damage to a structure like a house or fence; any stationary object.
The maximum coverage you have is the maximum dollar amount the insurance company will pay per accident.
Property damage liability insurance does not cover damage to the policyholder’s own vehicle or property. Collision or comprehensive coverage are necessary to have damage to the policyholder’s vehicle covered.
How Does it Work?
There are two types of liability insurance packages. One is a combined single limit policy and the other is a split limit policy. If you have a combined single limit policy, you can decide how to divide the coverage between property damage and bodily injury.
With split limit policies, however, your insurance company decides how much it will pay out for each type of liability coverage.
Let’s look at an example of how it works. Say you have $10,000 in coverage and you’re involved in an accident where you lost control of your car and hit another vehicle. If the other driver’s car is totaled and worth $20,000, your insurance company will pay $10,000, but you’ll be responsible for the other $10,000.
How Much Coverage Should You Have?
When figuring out how much coverage you should have, it’s smart to look at the average property damage claim. In 2019, the average property damage claim was $4,525 which is less than the minimum amount of coverage required by any state.
If you’d like more coverage to make sure you’re protected in the event of an accident, it’s relatively inexpensive and can give you peace of mind.
When do you need an attorney for a property damage claim? Visit Sweetlaw.com to learn more about hiring the right attorney for the job.
Property Damage Liability Coverage
Now that you know what you need to know about property damage liability coverage, it’s time to decide if you want more than the minimum amount of property damage liability coverage required by your state. You want to make sure you have enough coverage in case you are involved in an accident.
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