What does property damage liability cover?

Question

Liability insurance covers the other driver’s injuries and property damage in accidents that you cause. Bodily injury liability insurance covers the other driver’s medical expenses, while property damage liability insurance covers their vehicle and other objects damaged in the crash, like their home or fence.

What Liability Car Insurance Covers

… read full answer

Other people’s medical expenses after accidents caused by the policyholder

Damage to other people’s property caused by the policyholder

Legal fees if the policyholder is sued after causing an accident

What Liability Car Insurance Does Not Cover

The policyholder’s accident-related medical expenses

Damage to the policyholder’s vehicle or property

Lost wages, childcare, or other peripheral costs for the policyholder

Almost every state requires drivers to have liability insurance. Regardless of how much liability coverage the state requires, you should always purchase as much as you can comfortably afford to protect your finances and other drivers.

What Other Types of Liability Insurance Cover

There are several other types of liability insurance, including homeowners liability insurance, business liability coverage, and personal liability insurance. They all work in a similar manner to auto liability insurance: protecting the policyholder financially in incidents they are at fault for and offering assistance with legal costs if they are sued because of such incidents.

To learn more, check out WalletHub’s guide to liability insurance.

show less

Answer 1 · 2021-12-06 15:25:42

see this user

Leif Olson, Car Insurance Writer

@leif_olson_1 • 12/06/21 This answer was first published on 12/06/21. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

Permalink Report Abuse

Property damage liability insurance covers damage that you cause to another person’s property when you are at fault in a car accident. For example, property damage liability insurance will help pay for damage to other people’s cars, homes, offices, mailboxes, and more.

What Property Damage Liability Insurance Covers

Damaged Item	Covered?
Someone else’s car	Yes
Your car	No
Someone else’s fence, mailbox, etc.	Yes
Homes/office buildings	Yes
Injuries	No
Medical bills	No

Your property damage liability insurance is only used when you are at fault. If another driver is at fault and your car or other property is damaged, their liability insurance will help pay for your expenses. However, if you are at fault, the only way to have insurance pay for your repairs is if you have collision coverage on your policy.

Property damage liability insurance is mandatory in most states, but the amount of coverage you are required to have varies from state to state. For example, California requires only $5,000 in coverage, whereas Texas requires $25,000 in coverage.

To learn more, check out WalletHub’s guide to property damage liability insurance.

What does property damage liability cover?

Leif Olson, Car Insurance Writer

What Property Damage Liability Insurance Covers

Find Cheap Car Insurance

People also ask

What are examples of property damage?

What is the difference between collision and property damage insurance?

What does liability insurance cover?

Join WalletHub