Property Damage Liability Coverage

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Otherwise known as “PD”, this covers the costs you or a driver on your policy inflicts on another person’s property. In most cases, it will cover the repair bill of the third party car you hit, but it covers the cost of repair to any kind of property, whether it is a fence, a curb, or even a house. Keep in mind, this coverage does not cover the damage to your own property but to a third party’s property.

Property Damage coverage does have limits so it is important to buy the legal amount of property damage required for your state. However, it would also be wise to purchase Property Damage liability above and beyond the legal minimum because if you are sued for damaging someone’s property and your current limit is not enough you will have to make up the difference from your own pocket. This could be financially catastrophic for you and it is best to play it safe.

Also keep in mind that Property Damage Liability is paid out a per occurrence basis. This basically means for every accident you are involved in you can use up to your prescribed limit.

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