Accidents happen, and sometimes they are your fault. When you are found liable for an accident, you have to pay the other driver’s damages. This includes the cost of a totaled vehicle, a damaged house, and property damage. You can see how an accident that you are liable for quickly adds up to tens of thousands in damages, so you do not want to be caught lacking a few thousand dollars.
Because of the likelihood of an accident being your fault, all drivers are required to have liability insurance by law. This keeps you and other drivers safe from getting hurt or having their property damaged with no compensation. Since property damage covers another person’s property, you do not have to file a claim. That is the responsibility of the person whose property was damaged. Depending on the nature of the damages, sometimes other types of coverage like collision insurance may cover the rest of the damages.
Property damage covers the cost of all damages done to another person’s property that you are liable for. This would include their house, car, fences, mailboxes, or anything else considered their property. The cost of hospital bills is not included with property damage coverage. To cover the cost of hospital bills, look into bodily injury coverage. Bodily injury coverage plus property damage coverage fully covers your responsibilities when an accident is your fault.
Does Property Damage Auto Insurance Have A Minimum?
The minimum coverage for property damage depends on the state. It can be as little as $5,000 in some states and as much as $25,000 in other states. The more coverage you receive, the higher the premium you have to pay. Liability limits can reach up to $100,000 with the highest type of premium.
Depending on the car insurance company, there is little to no difference in the premium for property damage coverage. If you are the nervous type and prefer higher coverage for property damage, it will not break your wallet. It is good to have the coverage just in case, and it takes a load off of your mind.
Should I Go With A Higher Premium To Get More Coverage?
If you consider yourself a good driver, perhaps you do not need more coverage. However, the highest premium compared to the coverage you get is not too much different from the lowest premium. With some auto insurance companies, you can get coverage from $10,000 to $100,000 with only an extra $10 on your premium. It may be worth it to look into the higher premium for higher coverage. Making tens of thousands of dollars in property damage without the coverage means that you will be a fish out of water, unable to pay someone back for the damages that you cause.
On the other hand, most property damage claims do not exceed a few thousand dollars on average. Higher property damage coverage may not be necessary. It depends on your willingness to pay for a higher premium and your likelihood to get into a hundred thousand dollar accident.
Take some things into consideration, such as how often you drive and where you drive. What does your daily commute look like? Are you surrounded by expensive property, and how are the drivers around you? Take an estimate in your mind of how much property damage coverage you will need just in case. This keeps you from overpaying, and it also keeps you from making the mistake of not having enough coverage.