How Much Property Damage Car Insurance Do I Need?
When we purchase any insurance policy, we know the providers offer us a range of coverage options, too, which works as a financial supporter when we encounter an accident. And, out of all those coverages listed, one of the widespread options is property damage liability coverage, mainly used when we knowingly or unknowingly damage someone else’s property.
Still, very few people know how it works and how much property damage car insurance do I need; thus, in this article, we will briefly discuss everything about property damage. So, read the entire article carefully.
What is Property Damage Liability?
Property Damage Liability includes bodily injury liability to ensure that the drivers can pay for all those losses to someone else’s property because of your fault.
In short, with the help of property damage coverages, you can quickly pay for the other losses you or your family members caused.
Things that Property Damage Covers:
As we said above, property damage mainly covers those damages that are caused by you or any of your family members on someone else property or vehicle. Thus, let’s discuss it in a more brief manner below;
- Another Person’s Property:
Suppose you immediately turned your car to save the life of an animal who suddenly came to the roadside, and your vehicle hit someone’s fencing or someone’s mailbox, and it was completely damaged. Then, at that time, your property damage liability insurance will pay for all those coverages.
(Please make a note that, here, you will not able to add your vehicle damage expenses; as for that, you need to buy comprehensive and collision insurance coverages)
- Another Person’s Vehicle:
For instance, If you accidentally hit someone’s car while backing out of your vehicle from a parking spot, at that time, you are responsible for causing damages to another person’s vehicle.
Thus, at that time, your property damage liability insurance will pay for all those damages that are incurred to another’s vehicle, including the repairing or replacement costs, based on your policy.
How Does Property Damage Insurance Work?
Property damage liability insurance typically has a “per accident” limit and no deductibles, meaning the coverages only pay after the accident you caused and up to the fixed amounts mentioned in your policy.
Suppose you have been involved in any other accident because of your fault. In that case, your policy provider will pay for all the expenses on your behalf, but mark my words carefully that the policy will only pay for certain limits; you need to pay from your packet.
Now, let’s see how the policy works after you meet with an accident.
- The first step you need to take is to inform your insurance company about the damages caused to someone else’s vehicle and start a claim process.
- Later, your insurer will work with the other parties to recover their damages and directly pay the expenses on your behalf, but only that much of the amount mentioned in the policy.
How Much Property Damage Liability Costs?
The cost of property damage insurance coverages affects a few factors, such as the vehicle model, location, driving history, age, insurance policy, coverages you have added, and more. But, here, if we talk about its average annual cost, it is $650.35, per the recent National Association of Insurance Commissioners data.
The average cost varies depending on the state’s policy. Here, if you want the cheapest property damage insurance rate, it is currently available in North Dakota at 312.30 per year. Louisiana has the most expensive property damage rate, at $1023.91 annually.
Still, if you are looking for cheaper property damage coverage, we recommend you request a quote online by mentioning your requirements and needs as well as the budget.
How Much Property Damage Car Insurance Do I Need?
As we said above, most states have announced that Property damage is mandatory for every vehicle, except Virginia and some parts of Alaska, so here, all the drivers must have a minimum amount of property damage policies, which can quickly be paid in case if any damages caused by them.
But sometimes, there is a possibility that your minimum amount of property damage policy will not be able to cover significant damages on other vehicles. In that case, some must pay the remaining amount from their pocket.
Therefore, here, we always recommend the policyholder buy the policy of at least $5000 to $5,700 as it is currently the average cost of damages per vehicle, as per the Nation Safety Council details. On the other hand, the price may be increased if you have caused damage to any luxurious car model, as the repair cost is double that of ordinary cars.
Final Words:
We all know the types of coverage that every insurance includes, right dear readers? Out of those insurance coverages, here in this article, we have provided essential information, which is a mandatory thing nowadays that every driver must need while driving.
We have also shared its costs, how it works, what it covers, and more with you. So, if you have yet to include this coverage option in your insurance policy, connect with your insurance provider and tell them to add it to your policy, which can be very helpful at that time when you have caused any damages to another’s vehicle.
Finally, we thank all the readers for spending their valuable time reading our article, and if you have any queries, please feel free to comment in our website comment section.