Car insurance is vital in helping drivers meet their state’s legal requirements for financial responsibility as well as protecting their personal assets if they are involved in an automobile accident. Property Damage Liability coverage safeguards against costs that a driver may be held responsible for if he or she causes damage to property of another as a result of an auto accident. This typically involves damage to another person’s car, but might also include damage caused if the driver’s car strikes a guardrail, a fence, mailbox or home, or could even commercial property that receives damage.
First, most states require driver’s to have a specific amount financial responsibility that would be available to pay for damages should the driver cause an accident. In most cases, that financial responsibility can be or is required to be in the form of a liability insurance policy. Failure to maintain financial responsibility/liability insurance in at least the state minimum amounts can result in serious penalties, including substantial fines and even suspension or your driver’s license and/or vehicle registration. In addition to your legal obligation, liability insurance helps protect your personal assets and finances. Take for example this potential real life scenario where property damage liability is beneficial: You're driving down the road and rear-end the car in front of you, which then swerves and hits someone's mailbox. The police issue you a citation for Failure to Maintain Proper Distance between Vehicles--Following Too Close, so you are clearly at fault. Depending on the amount of your Property Damage Liability coverage, your insurance would pay to have the other car repaired or replaced, as well as to repair or replace the damaged mailbox. It would also pay for your legal defense should the driver of the car you hit and/or owner of the mail box sue you for damages.
Note: Property Damage Liability coverage only protects you if you are responsible for damages to another person’s property. . It does not cover damage to your own vehicle that might be caused by the same accident.
If you want to learn more about Property Damage Liability or get coverage, you can apply online or visit a Direct Auto & Life Insurance agent in your neighborhood. We look forward to helping you get insurance coverage!