Property Damage Liability Insurance

If you are found at fault in an accident, property damage liability insurance will protect from damage costs to someone else's property.

Property damage liability is typically required to some extent in most states and usually financial lenders will require you to have it. If you don't have it, any damages you cause to someone else's vehicle or property will have to come out of your pocket. Property damage liability coverage does not cover your own property so if you are involved in an accident wherein you are found at fault, you will have to pay to get your own car repaired or replaced.

It usually also extends to cover damage to things such as fences, utility and light poles, mail boxes, garage doors, buildings, and more. You'll want to review your policy to see exactly what it covers. You will likely have a deductible as well.

Property damage liability comes in two flavors: Combined Single Limit (CSL) or split limit coverage.

CSL is applied to bodily damage, property damage, or both. For example, you may elect to have $70,000 coverage wherein, if you cause a lot of damage to someone's vehicle but no injuries, your insurance will cover repairs up to $70,000.

Conversely, split limit coverage allows you to apply a different limit to bodily and property damage. For example, you may choose to have $50,000 bodily injury liability and $10,000 property damage liability. Keep in mind though that if you were involved in an accident and you cause $20,000 worth of damage to someone's vehicle, you'd be liable for the remaining $10,000 plus your deductible, if you have one.