Property damage liability coverage helps pay for damage done to someone’s property as the result of a covered accident for which you are responsible. It does not pay for any damage to your property. It may help cover the expense of repairing or replacing a car, fence or other property damaged during the covered incident.

What Property Damage Coverage Covers

Exactly what your liability insurance covers varies according to your policy and amount of coverage, so read the contract carefully or ask your insurance agent.

Typically, property damage liability insurance covers repair and/or replacement of:

• Damaged vehicles.
• Damaged personal property, such as a house, a fence, or a lamppost.

What If My Car Gets Damaged?

Property damage liability coverage does not pay for damages you cause to your own vehicle or personal property.

To ensure you’ll be able to pay for damage to your own property, consider getting collision and/or comprehensive coverage.

Buying Property Damage Liability Insurance

The importance of property damage cannot be overstated. It’s safe to say that you’re probably going to cause at least some damage if you get into any accident. This will leave you having to pay the costs if you’re at least partially at fault. As with bodily injury, your home and other assets can be put at risk in lawsuits involving property damage.

When you look at a liability insurance policy, you’ll typically see it written as such:

$15,000/$30,000/$20,0000

The first 2 numbers represent the bodily injury coverage amounts. The 3rd number represents property damage liability coverage.

Property damage is not split into “per person” and “per accident” like bodily injury. It covers a maximum amount per accident.

A basic liability insurance policy will include property damage liability. Make sure you understand your state’s requirements for car insurance.