Property damage coverage sounds pretty obvious in terms of explaining what it covers. This is one of the most used coverages in the world of car insurance. Why? you might ask, well as long as there has been cars on the road people have been running into things like other vehicles and other peoples property! This is why we need this type of protection. It is the reality that we live with everyday, there will be car accidents and we have to take steps to protect ourselves as well as others.
Understanding What Property Damage Covers
Most people think of property damage as the coverage that pays for the other car to get fixed if you cause the accident. This is true, but it also covers other things as well. It covers all types of properties from damages caused by the insured. Things like fences, walls, houses, fire hydrants, street signs, traffic signals and anything else you can imagine someone crashing into. It will either pay to fix or repair the damaged items up to the policy limit.
Deciding How Much Property Damage Coverage You Need
Deciding how much property damage protection to purchase can be a tough decision. Things to consider when deciding are how coverage you can afford, what type of vehicles people drive in your area and the amount of personal assets you want to protect. First off the affordability will be a major factor in your decision making because you want to make sure you stay within your budget. The good thing is that upping your limits does not cost a whole lot of money if you just move up a step or two from what is required in your state. Secondly you want to assess the types of cars that are around the area that you drive in. If you live in a “high end” or “well to do” neighborhood your going to want to have enough protection to pay for damages to a Mercedes or BMW as these parts can get very expensive. Also if you are a homeowner, business owner or just have a lot of property that you want protected in case of a law suit you should definitely consider higher levels of protection.
How Much Does Property Damage Coverage Cost?
The cost of property damage will vary from carrier to carrier and will be determined by a few key factors. The area you live can be used as a price indicator with some companies as well as your driving record and the type of car you drive. Different states also have their own requirements for property damage limits so this can affect the cost of coverage as well. The best way to find out the lowest rates is to get free quotes online. That way you can have a better understanding of which company has the best options available for you.