Understanding Property Damage Liability Coverage

Almost every state will make you purchase some sort of liability auto insurance coverage, and property liability coverage is included in that. First, what is property damage liability coverage? Here's the definition:

• property damage liability coverage: auto insurance coverage that pays for property damaged by you in an auto accident.

If you purchase an auto insurance policy and your liability limits say something like "25/50/15,' the last number is your property damage liability coverage amount which is $15,000 in this scenario.

If you cause an auto accident, your auto insurance company will pay for a maximum of $15,000 of property damage. Anything beyond that amount comes out of your own pocket. This coverage includes replacing and repairing automobiles, but also could include other types of property such as a fence.

No one wants to be sued, and even worse, no one wants to have to liquidate their assets in order to settle a liability claim. Having more than enough property damage liability auto insurance coverage could prevent this disastrous financial situation from happening. If possible, purchase more than the state minimum of property damage liability insurance.