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If you cause an accident, two types of liability coverage can help protect you:
Property damage liability insurance can help pay for repairs if you destroy another person’s belongings (e.g., vehicle, house, office, store, trees, signs).
Be aware, this coverage doesn’t pay for damage to your own car. Collision Coverage will cover your vehicle.
Property damage liability is required by law in most states. Car insurance minimum limit laws vary by state but do not have maximum amounts, which means you can increase your limit how you see fit. This can help make sure you’re fully protected if the property damage exceeds your state minimums. You will likely see your liability limits represented as $25,000/$50,000/$20,000 Bodily Injury per person/Bodily Injury per accident/Property Damage per accident
You hit another driver and cause them $20,000 in injuries and $15,000 in property damage. Your insurance should pay both amounts because all injuries and damage fall below your coverage limits.
Choosing more liability coverage than you’re legally required to have is generally a good idea, and a popular one. On average, over 50% of customers choose more than their state’s minimum limits for bodily injury, and over 60% of customers choose more property damage coverage than their state requires.
You have a split-limit policy that covers $100,000/$300,000/$100,000 bodily injury up to $100,000 per person, $300,000 per accident, $100,000 property damage. However, you cause an accident in which you’re liable for $120,000 in medical expenses for one individual, leaving you on the hook for $20,000 and property damage of $150,000, leaving you on the hook for $50,000. With a combined single limit of $300,000, your insurance would cover the full $120,000in medical expenses and $150,000 in property damages since your maximum limit of$300,000 applies to any type of liability claim.