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Auto Insurance: Property Damage Coverage

By Compuquotes Team on March 27th, 2008

Auto Insurance

Auto insurance can give you property damage coverage which is very much like it sounds-it helps you pay for the damages to property if you cause an accident, such as a fence, car or building. Property damage coverage can also help to protect you if you are sued in relation to the accident. Subsequently, property damage coverage is one of the most important types of coverage that you can have on your auto insurance policy.

If you happen to damage your own property in an accident or collision, you can decide whether it is worth repairing yourself or going through your insurance. However, if you damage someone else's property, you should bank on them being not as flexible if you want to fix it yourself.

If you damage someone's property or vehicle, the price tag can get quite hefty. Consider that a new car costs over $20,000-if you destroy that vehicle, you are responsible for the full price tag of the car. If you cause a collision which destroys a more expensive car, say a Porsche, you would be liable for $50,000. Now consider that if you hit someone's house or building in an accident, the structural damage that you cause can easily top $50,000. This is why property damage insurance is so important-and for only a few extra dollars a month, is something you really can't live without.

Most of the states require you to have property damage as part of your insurance policy-however, the limits are quite low and are often not enough to cover yourself in the event of a collision or accident.

When you purchase auto insurance you should aim to purchase the highest limits that you can afford to give yourself maximum insurance protection. Insurance coverage such as property damage coverage offers you a lot of protection for little money and is considerably one of the best deals on the insurance market. Also, it only costs a few dollars more each month to purchase a much higher level of property damage insurance coverage.

When you go to get your auto insurance, check with your broker or agent and talk to them about property damage coverage for your policy. Find out what the price differences are in the different levels of coverage and discuss with your agent or broker the type of insurance you need.

It is important to remember that you could never really have too much coverage-the highest levels of insurance are there to cover you and the expenses in the event of a collision or accident. They do happen-they are avoidable but they do happen. If you are one of the lucky people who have not had a collision, your rates will be even lower. If you are one of the many people who have had an at-fault collision of any type, you can expect that your insurance rates will be higher. The more collisions and moving violations you have on your driving record-the higher you can expect your insurance payments to be.

See average annual insurance rates for more than 2,000 vehicles

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