Auto Insurance and Property Damage Coverage

By Compuquotes Team on March 27th, 2008

Auto Insurance

Property damage coverage is one of the standard auto insurance coverage areas - it is required by law that you have both personal liability and property damage insurance on any vehicle that you drive. Property damage coverage is insurance for damage to property - such as a building or light pole. Property damage coverage is 'combined' with personal liability coverage (known in the insurance industry as PL/PD) and together this insurance package covers you for almost all accidents, upsets and collisions that you are involved in. Property damage/personal liability insurance is the most important type of insurance that you will have.

If you damage your own property in a collision, you can decide whether or not you want to go through your insurance and claim the damage, or fix the damage yourself. If you damage someone else's property, you should consider that they will likely not be as flexible if you want to repair the damages yourself and will likely expect that you go through your insurance.

Damaging someone's property or car can be quite expensive. A new car costs over $20,000 today and if you destroy/total that vehicle, you are on the hook for the full price tag of replacing that car. If you hit someone's home or a building, the structural damage that could be caused could easily soar to $50,000 and higher. These figures are why it is vital that you have property damage/personal liability insurance - this type of insurance is the cheapest (believe it or not) and is something that you really can not live with out. While the law states you must have personal liability and property damage, their limits that they require are not enough to cover yourself in the event of an accident or collision. Be sure to talk to your insurance agent about what you really need.

When you buy your auto insurance, you should purchase the highest limits that you can afford. This will offer you the maximum protection for yourself and your vehicle. Property damage and personal liability coverage is not that expensive and raising your limits to a more suitable amount shouldn't cost you too much. It's definitely something you should talk to your auto insurance agent or broker about and find out what insurance you need and at what cost. Discuss the differing levels of property damage and personal liability coverage and the cost difference between the two - for the sake of a few dollars more each month, the extra coverage is worth it.

Collisions happen - they are always avoidable in some way, but they do happen and when you are in one, you can never have too much insurance. If you've had a collision in the past, you know the value of insurance. Of course, if you've been at fault in a collision, you also know that your insurance rates are higher than they were before. If you are one of the many who've never been at fault in a collision, your rates will be considerably lower than those who've had a collision.

The best thing to do is to talk to your insurance agent about your needs, your car and your driving habits - he or she will be able to help you find the right insurance for you.

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