What is Auto Insurance Property Damage Coverage?
Drivers in the United States are often required to purchase liability insurance, which covers property damage. Auto insurance property damage is designed to cover for damages that the policy holder may cause to someone else’s property due to negligence. Property damage caused to another vehicle is the most common reason why motorists purchase auto insurance policies. A common scenario is when you accidentally hit or scratched another car on the rear. For whatever reasons, the insurance company will deal with the other driver. Another probable situation is when the insurance holder lost control over his car and smashed it to his neighbor’s house. The damage caused to the house will be covered by the auto insurance property damage policy.
The coverage of property damage policy, however, has certain limits depending on the state where the policy holder resides in. For instance, a driver is allowed to purchase the minimum required coverage, but in case of property damage, the insurance company will only cover the maximum amount insured. If the damages exceed the coverage of the policy, the holder is held responsible for the remaining costs that the insurance company is unable to cover.
The limits on auto insurance property damage refer to the maximum amount that the policy holder needs to pay in case of an accident. They are often represented in the following scenarios: first is the limited coverage for bodily injury for a single individual; second is the limited bodily injury coverage on the whole for a single accident; and lastly, the limit for property damage coverage.
Auto insurance property damage only covers the costs needed in repairing another person’s property. It does not cover the costs that will be needed to repair your personal vehicle. Need not worry because the collision coverage of the policy takes care of the expenses you need to repair your own vehicle. Such coverage is advisable but is not required by law. So, if your insurance policy does not include collision coverage, you, as the driver, will be held responsible for all the risks in case of an at-fault accident.
Such damages caused by theft, vandalism, and the weather, however, are not covered by the auto insurance property damage policy. You need the comprehensive coverage for such damages. It is, however, advisable to insure yourself in case an unexpected collision or accident is caused to you by an uninsured motorist.
Understanding the role of auto insurance property damage coverage plays a very significant role in your policy. This way you are made aware of the impact that accident costs have on your finances. Insuring only the minimum coverage and not reading the fine print of his policy will cost the insurer a large amount from his personal savings to pay for damages in the future. So, it is always wise to be well informed and inquisitive about the insurance policy that you have or intend to have.
Nothing beats a well-informed man. So, before buying an insurance policy, it is best to look around and study other options first. Search through the internet for the best coverage that you think suits you best, and that which can be bought at a reasonable price. Consider the following factors in purchasing auto insurance property damage: customer service, ability to pay claims, previous records of most paying claims, general reputation, and reviews regarding the insurance company. This way, you are insured of the coverage that your insurance policy covers.