Property Damage Liability Insurance CoverageJun 21st, 2012 | By Hot News Reporter | Category: Insurance Today
Property Damage PD Liability Insurance is one of the two elements of Auto Insurance together with Bodily Injury. In most states, this coverage is actually mandatory which isn’t really surprising considering how important it is for drivers.
What is Property Damage?
First off, it is important to note that Property Damage coverage doesn’t refer to the property relating to the policy holder. Typically, this covers the expenses a policy holder is expected to pay as penance for property damage done by him. Hence, the insurance is meant for a third person during an accident.
As the name suggests, Property Damage is mostly concerned about properties as opposed to Bodily Injury which is focused on a person’s well being. Specifically, this coverage pays for any damage caused to the car of the other driver. Any other personal property that might have been harmed during the impact could also be included in the coverage of the insurance. Even buildings, fences or parts of the home fall within this category.
How Does It Work?
Like BI, Property Damage comes with a limit that the insurance holder and company agree on beforehand. The amount is usually less than the price prescribed for Bodily Insurance policies.
The method of availing this insurance type may also vary from one provider to another. For example, some policies sell Bodily Injury and Property Damage as a bundle. This means that the policy covers both of them and would require only one payment. However, others sell them per-piece, allowing individuals to be more flexible with the amounts they choose.
Since auto insurance is mandatory for most states, it’s impossible not to own a car without obtaining this coverage. Penalties are awarded to anyone who disobeys the policies regarding auto insurance.
How to Determine Personal Damage Insurance
Personal Damage could amount to thousands of dollars depending on the amount of breakage that occurred. Typically though, states require a minimum amount for policy holders which are why it is important to consult beforehand. Usually, the amount is lower than the BI limit which is $100,000 for every person.
Currently, there are online calculators that could provide individuals with a good idea of how much they need for their policy.
How to Choose and Lower PD Policies
Like most insurance types, PD policies have premiums that depend on several factors. One of the most common ones includes the policy holder’s driving history. A commendable driving history with very little accidents and infractions makes it possible for individuals to ask for lower rates. Even driving cars that are known for their safety could help applicants into getting budget-friendly policies for their insurance. Make sure to browse through several insurance providers before ultimately making a choice about which one to consider.
Importance of Personal Damage Insurance
Of course, some people can’t help but question the existence of this type of policy. The fact is that some individuals are more concerned with protecting themselves rather than other people during the accident. Indirectly however, this is exactly what Property Damage does. See, in the event that expensive damage is done to property, the owners have every right to go after the individual who caused it. The absence of PD insurance could jeopardize a person’s personal assets, forcing them to bankruptcy. With insurance however, the blow will be cushioned, allowing the policy holder to deal with the situation better, money-wise.