Property damage liability coverage is part of an auto insurance policy. It helps pay for the repair of damage you cause to someone else's vehicle or property. Property damage liability coverage is required by law in most states. Property damage liability insurance is the part of an auto insurance policy that helps pay for the repair of damage you cause to someone else's property.
In the case of car insurance, property damage liability insurance comes into play when someone is at fault for an accident and the victim files a claim with the at-fault driver's insurance. Property damage liability insurance pays for damage to someone else's property after a car accident that you or someone driving your car with a permit causes. Property damage liability coverage is one of two types of auto liability insurance and is mandatory in most states. Property damage liability insurance is a type of car insurance coverage that pays for damage you cause to someone else's property, such as your car or home, as a result of an accident.
Property damage liability insurance is generally combined with bodily injury liability insurance to create what is simply called “liability insurance.” You can file a property damage liability claim with the at-fault driver's insurance company after an accident and, if you were at fault, the drivers involved will file a disability claim with their insurer. Auto liability insurance covers damage to other people's property after accidents caused by the policyholder, up to the limits of the policy, and does not require the policyholder to pay anything out of pocket. Property damage liability (PD) insurance pays for repairs to other people's property after it's damaged in an accident you cause, while collision insurance pays for the repair or replacement of your vehicle after an accident. The difference between car insurance against property damage and collision insurance is which property is covered.
Property damage liability insurance is a major component of auto insurance, homeowners insurance, and business liability insurance. Property damage liability insurance is important because it protects drivers from being held financially responsible for other people's damaged property, such as their vehicle or home, after a car accident caused by the policyholder. Since property damage liability insurance is mandatory in every state that requires you to purchase car insurance, you don't have the option of buying it or not. However, the car insurance minimums required by the state may not be sufficient to fully cover all the property damage you may cause.
Yes, car insurance covers damage to private property, although it's more difficult to determine fault after an accident on private property because the owner may be partially responsible.