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Do You Need Property Damage Insurance?

car crashed into a tree with property damage insurance

What is Property Damage Car Insurance?

Property damage car insurance is considered a form of liability insurance. It is designed to help pay for damages to a vehicle or other objects, such as a fence or mailbox, in the event of a covered accident. Most states require drivers to carry a minimum amount of property damage liability coverage.

This coverage is intended to protect you if you’re involved in the accidental destruction of property.

What Is Property Damage? 

Property damage occurs if you harm or destroy another person’s property during an accident. For instance, driving into a vehicle and denting it is considered property damage. You can also damage other types of property, including trees, lamp posts and buildings. In no-fault states, your property damage insurance pays for your damages, regardless of who caused the incident.

Types of Property Damage Vehicle Insurance

There are different types of property damage. The damage might lead to expensive repairs, loss of use, or diminution in value. After a property damage appraisal, the claim adjuster will determine the type of accidental property damage. That is an important step in having an insurance company pay a claim. 

How Much Does Property Damage Auto Insurance Cost?

Since the minimum amount of property damage liability insurance required by most states varies from a low of $5,000 to a high of $25,000, the average cost of your insurance premium could range from $130 to $140 per year. Typically, the average property damage bill comes in at roughly $5,000, lower than most state’s requirement. However, motorists are welcome to add more property damage insurance.

Buying more property damage insurance will not add much to your overall car insurance premium.

car crashes into fence and destroys fence

What is Covered under Property Damage Auto Insurance?

If your car damaged property in a covered event, you would use your property damage auto insurance to pay for the repairs or loss of the property. Other items that are often covered under property damage insurance include:

  • Court and attorney fees if there is a legal claim
  • Income loss if damage you are responsible for causes a business to be closed during repairs

Experts recommend that you purchase at least enough in property damage liability coverage to pay for a new car if you total someone’s vehicle. If you total a brand new sports car, you may be stuck paying quite a bit out of pocket if you only have the minimum required amount.

What Is the Difference Between Collision Insurance and Property Damage Insurance?

Your collision car insurance provides coverage to repair your vehicle regardless of who caused an accident. In an at-fault state, property damage insurance pays for damages incurred by the driver who is not at fault. It will not pay for any damage to your vehicle if you caused the wreck. However, if you have collision car insurance, it will pay for damages to your car after you meet your deductible.

Getting Property Damage Insurance

Aside from the fact that a certain amount of property damage insurance is legally required in most states, property damage insurance can benefit you in the event of a car crash. Begin the process by comparing quotes from different insurance companies. Once you’re insured, you will have more confidence when you’re on the road. You’ll know that even if you are in an accident, your finances will be protected.

Find Affordable Car Insurance Online Today

If you are getting ready to hit the road, make sure you have the car insurance coverage you need. Freeway can help you find the right coverage for your needs and budget. Get a free car insurance quote online, over the phone at 800-777-5620, or at one of our offices near you.

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