“How much property damage auto insurance do I need?” is a common question for new drivers, as well as those who move to a new state or purchase their own auto coverage after relying on their parent’s policy. If you cause an accident, property damage liability coverage pays to repair or replace the other vehicles involved, as well as other related property damage. Most states require drivers to carry property damage liability along with bodily injury liability, which pays for the medical expenses of others involved in an at-fault accident.
property damage coverage provisions
According to the zebra auto insurance website, most property damage liability policies cover these expenses for the other parties involved if you cause an accident:
Reading: Auto insurance property damage how much
- the cost of losses incurred by a business that had to close due to damage
- legal fees for a lawsuit brought against you for property damage
- damage to fences, houses and other stationary objects
- damage to other vehicles
- any other recurring costs resulting from accident damage
- coverage limit of $10,000 – $136 per year
- coverage limit of $15,000 – $138 per year
- coverage limit of $20,000 – $139 per year
- coverage limit of $25,000 – $140 per year
- coverage limit of $50,000 – $143 per year
- coverage of $100,000 – $146 per year
- $5000 – california, massachusetts, new jersey, pennsylvania
- $10,000 – Arizona, Delaware, Florida, Hawaii, Michigan, Minnesota, New Mexico, New York, Vermont, Washington, Washington DC, Wisconsin
- $15,000 – Colorado, Idaho, Iowa, Maryland, Tennessee, Utah
- $20,000 – illinois, montana, nevada, oregon, virginia, wyoming
- $25,000 – Alabama, Alaska, Arkansas, Connecticut, Georgia, Indiana, Kansas, Kentucky, Louisiana, Maine, Mississippi, Missouri, Nebraska, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, Rhode Island, Carolina south, south dakota, texas, west virginia
You cannot use your property damage liability policy to cover damage to your own property or vehicle. Depending on the incident, you’ll need a comprehensive or collision policy to cover those costs.
If you have an accident and the officers on scene and/or the insurance company decide that you are primarily at fault for the accident, the other driver will make a claim against your liability policy for the cost of repairing or replacing the accident. your car. this is called a third party claim. Remember that the insurance company will only pay up to your policy limits in this situation, so you could end up liable for the cost of excess damage if your policy limits do not fully cover the cost of your repairs.
decide on property damage coverage
If you cause a car accident, your costs could far exceed the minimum liability costs in your state. If that happens, injured parties can sue you for the remaining amount, risking impacting your personal net worth. you may have to sell your car, valuables, or even your home if you end up in this situation, which can be financially devastating.
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For this reason, many people purchase additional auto insurance liability coverage. To determine the maximum amount you should buy, Kiplinger suggests adding up all your assets and property and then subtracting your debt, which is your net worth. If you have a very high net worth, consider purchasing an umbrella policy if it maximizes the available auto insurance liability coverage. This type of policy adds more coverage for both your vehicles and your home. You can also add coverage for incidents like premises injuries, animal attacks, and defamation, should you be sued for any reason.
On the other hand, if you have few assets, you may not need more liability coverage, since you have little to lose in a lawsuit. Likewise, if you rarely have guests over, you have a low level of liability risk, so you probably don’t need to supplement your home and auto coverage with an umbrella policy.
wallethub points out that for most policies you can designate a flat amount for property damage and bodily injury or purchase a split limit policy. With the latter, you can divide coverage between coverage types as needed if an accident occurs.
The higher the coverage limits you choose, the higher the premium amounts you’ll pay. however, most people only pay a small amount more based on this variable, as valuepenguin reports using a sample of a new york driver with a 2014 toyota camry:
When you select auto insurance coverage, you’ll typically see a notation like this on your policy: $50,000/$100,000/$50,000, also written as 50/100/50. this example means you have $50,000 in bodily injury liability insurance per person, $100,000 per accident for bodily injury, and $50,000 per accident in property damage liability under your policy.
minimum property damage per condition
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States require auto insurance liability coverage to get drivers back on the road quickly after an accident. According to nerdwallet, states require the following minimum property damage liability coverages:
In most states, you must purchase additional coverage beyond property damage liability, but New Hampshire does not require drivers to carry any liability insurance. In addition, you can pay $500 to waive liability insurance in Virginia.
In some states, you can also prove you have the money to cover the costs of an at-fault accident instead of buying an insurance policy, but you may need to post a bond or put funds in an escrow account if you choose this option. however, most drivers simply choose to go the insurance route rather than spend a lot of cash.
Now that you’ve answered the question of how much property damage insurance you need, it’s time to shop around and find the best auto liability coverage rates in your area. You will pay less for car insurance if you live in a rural area, have a clean driving record, have good credit, and have many years of driving experience under your belt. By understanding these factors, you’ll have the information you need to buy enough property damage insurance at an affordable price.
Check this out if you need additional information, resources, or guidance on auto insurance.
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