If you ’ rhenium insured, your indemnity company covers the price, minus your deductible. This is the role of property damage liability insurance—coverage for damage you cause to another person ’ mho property. Liability coverage is the most basic form of car insurance, and all states—except New Hampshire—require it .
Key Takeaways
- Most states require car owners to buy property damage liability insurance.
- This coverage pays for damage to someone else’s property, such as a fence, a lamppost, or another driver’s car.
- It doesn’t cover damage to your own vehicle.
- Minimum liability requirements vary by state.
How Does Property Damage Liability Insurance Work ?
property price liability policy normally makes up precisely one part of your car insurance policy. Car insurance policies typically contain the postdate coverage types :
- Bodily Injury Liability: If you or a covered family member cause injuries to someone else, bodily injury liability coverage helps to pay their medical bills and lost wages.
- Medical Payments or Personal Injury Protection (PIP): If you’re in an accident and you or a passenger are injured, medical payments coverage or PIP will pay for your medical payments, lost wages, and even funeral costs.
- Collision: Collision insurance pays for repairs or replacement costs for the policyholder’s vehicle after an accident.
- Comprehensive: Comprehensive coverage reimburses policyholders for losses from theft or weather damage.
- Uninsured/Underinsured Motorist Coverage: If you’re in an accident with a person who either doesn’t have insurance or doesn’t have enough insurance to cover your damages, uninsured/underinsured motorist coverage will pay for your car repairs and other expenses.
- Property Damage Liability: Property damage liability insurance covers repairs to another person’s car or property, such as a fence or building, when you are at fault in an accident. It also will pay for the removal of debris, such as a damaged tree or signs, that occurs after an accident.
Liability coverage is typically written with three numbers, such as $ 50,000/ $ 100,000/ $ 50,000. The first total reflects your bodily injury coverage, the second count is your bodily injury coverage per incident limit, and the one-third number is the property damage liability dowry .
place damage liability doesn ’ triiodothyronine top repairs for your own vehicle or your medical expenses, so you ’ ll need extra coverage to protect yourself, such as collision and comprehensive indemnity .
How much Property Damage Liability Insurance Is Required ?
How much property damage liability indemnity you ’ re required to have depends on what submit you live in. Below are the minimum requirements for each express and Washington, D.C. :
- Alabama: $25,000
- Alaska: $25,000
- Arizona: $10,000
- Arkansas: $25,000
- California: $5,000
- Colorado: $15,000
- Connecticut: $20,000
- Delaware: $10,000
- District of Columbia: $10,000
- Florida: $10,000
- Georgia: $25,000
- Hawaii: $10,000
- Idaho: $15,000
- Illinois: $20,000
- Indiana: $25,000
- Iowa: $15,000
- Kansas: $25,000
- Kentucky: $25,000
- Louisiana: $25,000
- Maine: $25,000
- Maryland: $15,000
- Massachusetts: $5,000
- Michigan: $10,000
- Minnesota: $10,000
- Mississippi: $25,000
- Missouri: $25,000
- Montana: $20,000
- Nebraska: $25,000
- Nevada: $20,000
- New Hampshire: $25,000
- New Jersey: $5,000
- New Mexico: $10,000
- New York: $10,000
- North Carolina: $25,000
- North Dakota: $25,000
- Ohio: $25,000
- Oklahoma: $25,000
- Oregon: $20,000
- Pennsylvania: $5,000
- Rhode Island: $25,000
- South Carolina: $25,000
- South Dakota: $25,000
- Tennessee: $15,000
- Texas: $25,000
- Utah: $15,000
- Vermont: $10,000
- Virginia: $20,000
- Washington: $10,000
- West Virginia: $25,000
- Wisconsin: $10,000
- Wyoming: $20,000
How much Does Property Damage Liability Coverage Cost ?
Since property damage liability coverage is required by police in most states, you ’ ll want to purchase coverage from an policy company. How much your car insurance policy will cost is subject on your localization, vehicle, drive record, age, sex, indemnity options, and coverage amounts .
Most drivers find liability-only policies insufficient. To give themselves more protective covering, 78 % of insured drivers add collision coverage, according to the Insurance Information Institute .
buy car policy
All cars require policy. At a identical least, owners should buy a policy that meets state-minimum bodily injury and property damage indebtedness policy requirements. For the best rates, shop for quotes from multiple car indemnity companies .