Who Needs Property Damage Liability?
If you are a new driver in the process of purchasing your first car, aside from the vehicle price tag there are other factors you need to include in your transportation budget. Car maintenance, fuel expenses and car insurance are all mandatory expenses that need to be worked into the final price. When it comes to car insurance, that cost will be influence by the type of vehicle you buy, your driving history, age, gender and the state’s minimum requirement for proper levels of insurance. Every state has their own laws governing the amount of insurance drivers must carry, and the state requirements for property damage liability is generally $5000-$25,000.
Why Property Damage Liability?
Everyone needs some degree of property damage liability as mandated by the local laws of the state in which they reside and insure their vehicle.Property damage liability will provide you with auto insurance coverage in the case you are found at fault of causing an accident. The insurance will kick in and provide financial coverage for the repair or replacement of vehicles and other structures (such as homes, buildings and telephone poles).
How Property Damage Liability Can Save You
Typically, a small level of this insurance is required by law, however, your personal needs may vary greatly and you may need more property damage liability auto insurance coverage then your state calls for. Consider if you are a homeowner with $10,000 of property damage liability car insurance. If you end up causing an accident with a luxury vehicle valued at $40,000 and their car is totaled beyond repair, you will be found responsible for making retributions. That means you may have to mortgage your home to the tune of $30,000 and up to pay off the remainder of the debt that you caused.
Even if you have a spotless driving record and feel 100% confident with your skills, you need property damage liability insurance to protect yourself and your financial assets in a worst case scenario. Not only may it be the local law of your state, it is a wise level of protection to add to your car insurance policy.