Property Damage Liability Insurance Coverage

Accidents happen every day. With the rising population in the United States, the number of drivers on the road increases as new highways are built and extended. Most states require the driver to purchase property damage liability insurance coverage. If you are in an accident and at fault, this covers the property damage limits to the others person's vehicle. This will also cover the cost of any damage to surrounding property that may suffer from the accident.

There are a few different types of property damage liability insurance coverage policies to choose from. One type is a combined single limit policy. This insures the driver with a single amount of coverage and you can apply as much as you desire to either bodily injury or property damage liability. Another type is a split limit policy. This divides the coverage and protection amounts equally between bodily injury and property damage liability.

You can purchase a minimal amount of property damage liability insurance coverage, which can be as low as $5,000. This amount is risky, because if the price of repairs to a vehicle and property is higher than $5,000, you are responsible for any additional costs. If you do not pay what was not included in the property damage limits, the other driver or insurance company can take you to court and sue you for the remaining balance. This could mean emptying your savings account, selling your home or even your job earnings being garnished in accidents that are more serious.

Consider a scenario where the other driver's car is destroyed. If you are at fault you will have to pay for the damages, and $5,000 is not going to cover the cost of a new car. If the car destroys a fence or someone's personal property, you are responsible for that cost too. This can add up very quickly from an accident. Therefore, the higher the property damage limits of your coverage, the safer your own possessions are.

The cost to repair the damage is generally estimated by trained professionals, such as auto body specialists and auto mechanics. They will locate the parts and add in the cost of time and labor, then provide a written proposal. This usually requires three estimates from different professionals. Another method of determining the cost is when an adjuster from an insurance company looks at the vehicle and evaluates the damage.

Having an adequate amount of liability insurance coverage depends on both budget and necessity. If affordable, extensive coverage will give a driver peace of mind. When purchasing coverage it may be beneficial to remember this wise saying, "It is better to be safe then to be sorry."