If you are found at fault in an accident and have caused damage to someone's property, property damage liability insurance (also known as property damage coverage) may pay for the cost of repairs to the property.
People may mistakenly think that property damage insurance provides coverage for damages to their own car; however, this is not the case. You would be using your collision coverage instead.
You might use this coverage if you do one of the following:
According to the Insurance Information Institute (Opens in a new tab), the severity of accidents rises every year, as well as the costs of materials and labor. This has all led to an increase in property damage costs per accident. You should think about this when you are setting your limits for property damage coverage on your policy.
In some states, you are required to purchase a minimum amount of property damage liability coverage. Call us to find out what's required in your state.
