Understanding Property Damage Liability Coverage on Your Auto Insurance Policy

Property damage liability coverage protects you from paying hefty sums of money in case you ever get into an accident. While you may feel confident on the road, you can never know when danger can strike and leave you emptying your pockets. For that reason, it's important that you purchase property damage liability coverage with your auto insurance policy, which will pay for repair labor, new parts, valuables lost inside the car, and damages to the other person's car.

Why do I need property damage liability coverage?

Because on the roads, you're never free from danger. Whether or not you think you'll get into an accident that's your fault, or have tons of money under the sofa for just this instance, it's still a safe bet to purchase property damage liability coverage. In fact, depending on the car and the damage to anything nearby, the total amount of money coming out of your wallet could easily top a million dollars. In addition, most states require that you purchase property damage liability coverage just for that reason: most likely, you wouldn't be able to pay for the damage without the help of your insurance company.

How much property damage liability coverage do I need?

While most states require at least $5,000 in property damage liability coverage, this won't protect you from most accidents. It is for the petty and small-dent accidents. You need about $50,000 to $100,000 to better protect you. This way, not only are the damages on your car protected, but also on the other person's. While it always depends on the damage, investing a good sum of money into your auto insurance policy is a safe bet.

Commentary

While you may think you won't get into an accident, property damage liability coverage is an absolute necessity when dealing with your auto insurance policy. The cost of the coverage is far less than the cost you might have to pay if you get into an accident. Do yourself a favor and purchase property damage liability coverage if you haven't done so already.

Source:

"Property Damage Liability." The Car Insurance Guide.