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What Does Property Damage Mean In Car Insurance

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What Does Each Car Insurance Numbers Represent

Whose Property Damage Liability Insurance Should I Use After a Car Accident?

Different car insurance numbers show different coverage limits. These numbers on your auto insurance policy represent the monetary limits on your liability coverage.

The numbers may look like:

  • 10/20/10
  • 50/100/50

Let’s take 25/50/10 as an example,

  • The first number, 25, stands for $25,000. This is your maximum coverage for bodily injury liability for one person injured in one accident or incident.
  • The second number, 50, stands for $50,000. This is your maximum coverage for bodily injury liability for all persons injured in one accident.
  • The third number, 10, stands for $10,000. This is your maximum coverage for property damage liability in an accident that you caused.

Who Needs Property Damage Coverage

If you drive, you need Property Damage Liability on your car insurance policy! Most states don’t give you a choice. Drivers are required to carry a certain amount of Property Damage Liability.

PDL is designed to protect other people from damage that you cause while operating your vehicle. Likewise, if someone causes damage to your property in an auto accident, then their Property Damage Liability would come to your rescue! Property Damage Coverage can help everyone on the road.

Will My Home Insurance Cover Animal

A lot of home insurance providers wont cover damage caused by animals, from scratching and tearing to fouling. Very few contents insurance policies will cover for pets.

Some insurers wont even cover for damage caused my insect or vermin infestation.

However, squirrels are specifically excluded from the vermin classification of some home insurance policies- this is worth looking into, especially if you know theres a lot of them around your area.

Some insurers may offer an enhanced accidental damage cover policy, which would pay out to help cover the cost of things like pet-damaged sofas.

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Ask For Assistance From An Attorney

When in doubt, lean on your attorney for guidance. A legal practitioner will help you understand all of your options and make the best decision. However, plenty of people are hesitant to pay for legal assistance considering the cost of their medical bills and lost income. Though legal services will cost money, they are well worth it. After all, you likely have thousands if not tens of thousands of dollars or more hanging in the balance. Pay the little bit of money necessary for an attorney and you might end up with a settlement, verdict, or another award that covers the entirety of your costs related to the accident.

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What Is Uninsured Motorist Coverage

PROPERTY DAMAGE: WHAT SHOULD I DO?

Uninsured motorist coverage helps pay for your expenses if you are hit by an uninsured or underinsured driver. Uninsured motorist coverage is comprised of two types, one that covers injuries and the other that covers property damage:

  • Uninsured motorist bodily injury coverage: This is also called UMBI and this coverage will help pay your medical expenses if you are involved in a car accident with an uninsured driver. This is one half of uninsured motorist coverage and in many states can be purchased on its own or in conjunction with uninsured motorist property damage.
  • Uninsured motorist property damage: If you are confused as to what is uninsured motorist property damage insurance, you are in the right place. This coverage is what we are here to talk about today. It is also known as UMPD, and covers damage done to your property, typically your car, but also other things such as fences.

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How Much Property Damage Coverage Should You Purchase

Every state has its own minimum requirements for car insurance. A minimum amount of property damage liability coverage is legally required in most states.

Almost every, if not every, insurance policy includes coverage for property damage to anothers property, says attorney John R. Gorman, Partner and Personal Injury Lawyer with Lutz, Shafranski, Gorman & Mahoney, P.A.If you or a family member cause an auto collision, your auto insurances property damage coverage will pay for the other partys property damage caused. It is important to have the most property damage coverage that you can afford because if you total an expensive car, your assets could be at risk with a low property damage coverage limit.

When it comes to property damage liability insurance, you may want to consider purchasing higher limits than the state minimum level. If you cause an accident and the damages are greater than your policy limit, you are responsible for paying the overage out of pocket, which could cause significant financial stress. Before you finalize your auto insurance policy, talk to your agent about how much property damage coverage is right for you.

Consider A Combined Single Limit If You Have A High Net Worth

If you have a high net worth, it might be worth taking out an auto policy with a CSL for both bodily injury and property damage. CSL amounts usually range between $300,000 and $500,000. Premiums for a CSL policy are higher, but your coverage limit can be divided in whichever way necessary to satisfy a claim against you.

Example:

You have a split-limit policy that covers bodily injury up to $100,000 per person and $300,000 per accident. However, you cause an accident in which youre liable for $120,000 in medical expenses for one individual, leaving you on the hook for $20,000. With a combined single limit of $300,000, your insurance would cover the full $120,000, since your maximum limit of $300,000 applies to any type of liability claim.

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How Much Property Damage Liability Insurance Should You Carry

The average property damage claim is generally a few thousand dollars, meaning that unlike with other types of insurance, you may not need to carry that much. However, you may opt for higher limits to ensure that you are sufficiently protected in the event of an accident.

In 2010, the average property damage claim was $2,881. Over the last ten years, however, the average claim amount has nearly doubled. Nonetheless, these amounts are lower than the minimum amount in every state. As mentioned above, however, getting more coverage, just to be extra careful, is relatively inexpensive and can provide additional support following an accident that results in costly car damage.

The data below from the Insurance Information Institute shows how average property damage claims have risen between 2010 and 2019.

Year
$4,525

How Much Property Damage Liability Coverage Do I Need

Property Damage Liability Coverage (Auto Insurance)

First of all, that depends on where you live. Every state requires drivers to carry a minimum amount of property damage liability. The exact amount varies widely. The highest required amount is $25,000, and the lowest is just $5,000 .

If youre trying to keep your overall insurance premium low, you can opt for the state minimum property damage insurance. And that might be plenty! In 2016, the average auto insurance claim for property damage was $3,683. Not only that, but just 3.9 percent of people with liability insurance had a property damage liability claim that year, according to ISO.

Knowing this, you might decide the state minimum for property damage liability is plenty for you. If theres a 4 percent chance of someone filing a claim against your property damage insurance, and if the average claim is well under your limits, then youre probably good.

Then again, the average new car costs North of $31,000 now. If you cause an accident that totals or extensively damages two newer cars, you could be looking at claims that go way beyond what minimum property damage insurance will cover.

You may want a policy with more than the minimum coverage if:

  • You have a history of running into/over/through things with your car. Hey, we wont judge
  • You live in a busy urban area where tight parking and heavy traffic make it more likely youll hit someones car
  • You have assets to protect, and you want the peace of mind of having solid insurance protection

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What Are The Requirements For Coverage

The minimum coverage amounts for varies per state. State minimum coverage might not be enough to take care of the costs of a serious fender-bender.

In California, minimum coverage for property damage liability is $5,000 per incident. In New York, its $10,000 per accident. And if you live in Alabama, its $25,000 per accident.

What Are The Dcpd Rules In Ontario

There are four criteria that must be met to use DCPD insurance :

  • Not at-fault : You must not be at-fault for the accident. Fault determination rules under the Insurance Act are used to assess who caused the collision.
  • Vehicles involved : One or more vehicles must be involved in the accident.
  • Insured : All vehicles must be identified and insured.
  • Location : The accident must happen within Ontario.
  • When all of these situations apply, it will enact direct compensation coverage.

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    What Does Liability Mean On Your Car Insurance

    ByAmy Nutt | Submitted On May 13, 2008

    Liability insurance is very important and most state auto insurance laws require that an individual maintain at least liability insurance on their automobile. What it does is protect you against costs that are associated with the damage and injury of another in an automobile accident in which you may be deemed at fault.

    There are two parts to the policy. There is property damage liability and bodily injury liability. It is pretty easy to guess that property damage liability is going to protect you against any cost and damage that is associated with damaging another person’s physical property and that bodily injury liability is going to protect you against the personal injury inflicted on someone else as a result of the accident.

    Usually, there are some numbers that a person may see on their policy. These numbers usually look like this: 50/100/25. Now what this means is that the policy is split up into three different amounts each policy can be different depending on what the individual chose when they opened the policy. In this case, 50/100/25 means that the insurance will pay for the bodily injury of an individual in an amount up to $50,000, will pay for the bodily injury costs on everyone in a vehicle in an amount up to $100,000, and will pay property damage costs up to $25,000.

    The cost

    Just remember…

    Choose Direct Auto For Property Damage Coverage

    Does car insurance cover property damage?

    Call 1-877-GO-DIRECT or visit a Direct Auto Insurance location near you to learn more about Property Damage Liability requirements in your state. Friendly agents are standing by to help you get the affordable car insurance you need, regardless of your insurance history. Call, click, or come in today!

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    How Much Liability Insurance Do You Need

    Youre required to have only the amount of liability insurance mandated by your state, but you may want a higher limit to protect your savings and other financial assets should you cause an accident. Medical bills and car repairs can be incredibly expensive, and a split second could be the difference between a normal day and the beginning of bankruptcy.

    For example, say you hit another car, total it and seriously injure four people. If youre at fault, youll be responsible for the value of the car and the medical bills of all four passengers. Now, youre looking at almost $500,000 in medical bills to pay and another $50,000 for the car and damage to the roadway. Can your liability insurance pay for them?

    If you dont have enough coverage that is, if your bodily injury and property damage limits arent that high, respectively youll be personally responsible for any excess. The people you injured can sue you for that money, and you could end up losing your home or, in some states, having your wages garnished. The more you have to lose, the more they can come after.

    As a general rule, youll want enough liability insurance to cover your net worth. Thats equal to the value of all the cash you have and things you own, minus your debt.

    If you dont have much stuff, theres less incentive to sue you, and you may not need any additional coverage. Maybe youll decide the extra money in your pocket is worth more than the peace of mind from extra coverage.

    What Isnt Covered By Dcpd

    Bad news: Youre out of luck if its a hit-and-run. Like a game of Among Us or Clue, when you cant identify the culprit, you wont win any car or property damage insurance. This is when you need collision insurance to pay for the damage, which is optional and comes at an extra cost. It pays for repairs when you hit or are hit by a car or object while you are driving.

    Theres usually a deductible with collision and the limit depends on the policy you bought. Generally though, the bigger your premium, the less your deductible will be. And, you guessed it, the lower your premium, the more your deductible will be. While collision coverage pays for damage to your car, the uninsured motorist part of your no-fault insurance policy will cover medical needs if you are injured by a hit and run driver.

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    Additional Kinds Of Coverage

    • You can buy insurance for extra equipment, such as stereos, CD players, custom wheels, navigation systems, and cell phones that are permanently installed.
    • You can buy insurance for towing and road service.
    • You can buy rental reimbursement insurance for renting a car when your car is being repaired after a covered accident.

    How Personal Liability Insurance Works

    What Is Property Damage Liability Coverage?

    Personal liability insurance covers medical costs for the victim of an accident. If you are the victim of a crash, the other driver’s PLPD will cover your costs. If the other driver is the victim, your PLPD will cover theirs.

    Also called bodily injury coverage, personal liability insurance is often referred to in a split numeric form$15,000/$25,000, for example. The first number to appearin this case, $15,000is the most an insurance policy will pay per person for injury care after an accident. The second number refers to the maximum payout per separate accident. The minimum amount of personal liability insurance a motorist must purchase varies by state.

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    Definitions & Examples Of Property Damage Claims

    Auto insurance policies have different coverages that apply to different situations. All policies must have a form of liability insurance that includes property damage. If your property is damaged by another driver, that driver’s policy will cover it.

    Policies also have comprehensive and collision coverages. Comprehensive coverage applies to damage caused by events you cannot control. These include fire, acts of nature, or hitting an animal. Collision coverage applies when you are in an accident with another car.

    Once you’ve been in an accident or find out your property has been damaged, contact the police to file a report. This will create a record. In most cases, a police report also will decide which party was at fault.

    Never say anything to the police that might seem like you are admitting fault. Even saying, for instance, that you shouldnt have parked close to a busy road is too much.

    Take as many photos as you can. This will give you a record to go with what the police will gather. The more data you have, the greater chance that you will get the outcome you desire.

    Its All About You We Want To Help You Make The Right Coverage Choices

    Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance provider and cannot guarantee quotes from any single provider. Our partnerships dont influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

    Editorial Guidelines: We are a free online resource for anyone interested in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car insurance-related. We update our site regularly, and all content is reviewed by car insurance experts.

    • Basic car insurance isnt designed to pay for damage losses to your vehicle but will pay for damage to other cars
    • All standard insurance carriers offer policyholders the option to purchase optional physical damage coverage
    • The optional physical damage will pay for losses to the covered vehicle in scenarios where coverage applies
    • If your car is damaged in a wildfire or catches fire while its being operated, you need comprehensive coverage
    • If you file a comprehensive claim, the deductible that you carry on your policy will be deducted from your claim

    A majority of cars that catch fire either on the road or in a driveway will be totaled. The owner is left scrambling to figure out how to pay off the vehicle or replace it.

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    Liability Limit For Bodily Injury Per Accident

    The liability limit per accident is a financial cap for the total amount that the insurance company will pay for all of the individuals involved in an accident. In other words, the policy will cover medical expenses for those injured in an accident by the at-fault driver, but only up to an predetermined total. The at-fault driver would then be liable for any medical expenses above that limit.

    What Do The Numbers Mean

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    The three numbers on your 25/50/25 policy represent a dollar amount limit for a different type of liability auto insurance coverage.

    • Bodily injury liability per person

    • Bodily injury liability per accident

    • Property damage liability

    With a 25/50/25 insurance policy, the first number represents the amount of bodily injury liability per person. This is the maximum amount your insurance company will pay out for each person that is injured in an at-fault accident. You will be responsible for any costs above $25,000 with this level of coverage.

    The second number in the series represents the amount of bodily injury liability per accident. Bodily injury liability per accident is the maximum amount your insurance company will pay out for a single accident.

    The third number is the amount of property damage liability. Having 25/50/25 insurance means your insurer will pay a maximum of $25,000 to cover damage to another drivers vehicle or property. An example of damaged property in an accident may include a mailbox, fence or building.

    So, lets say you were in an accident that involved two injured people. Your 25/50/25 policy would cover each person up to $25,000. But if you were in an accident with more than two people, lets say four or five your insurance policy would only pay out up to $50,00 and no more than $50,000 for a single individual.

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