When someone gets into an accident, the first thing that comes to mind isn’t usually the damage they cause to someone else’s property. We usually worry about bodily injury first, damages to our own vehicle, and finally damages to other vehicles involved in the collision, if there are any. Most people assume these damages would all fall under liability and collision coverage, but that’s not the case. They actually fall under Property Damage Coverage, an additional category that falls under basic liability.
This is the specific coverage that actually covers the cost of someone else’s vehicle, storefront, fence, house, etc. in the case of an at-fault accident. In most states, it is mandatory to have some level of property damage coverage; however, the mandate isn’t always enough.
In this article, we’ll discuss why this type of coverage is important for your auto insurance policy and what it protects you from.
Why is it important?
This type of insurance extends beyond the other driver’s car and includes damage to other personal property. This could be a fence, building, wall, power pole, or just about any other type of “property” you can describe. Damage to someone’s property could be a very significant cost, so it might be a good idea for you to look into what coverage you currently have and what your agent recommends.
Does property damage coverage include my own property?
No, it does not. If you cause damage to your car, it is covered under your comprehensive/collision coverage if you purchased it. If you cause damage to your own personal property, like a bike on your bike rack, it should be covered under your homeowners or renters policy if you have such a policy.
Conclusion
In conclusion, although many states require some level of property damage liability coverage, it isn’t always enough. Talk to your agent or contact us, and we can help you decide the right amount of coverage for your situation.
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