What is liability for property damage?

by Guest » Mon Sep 29, 2008 04:17 am

If your car gets involved in an accident and you are at fault, then this policy pays for any damage to the other party's property. What the other party gets compensation for is not just the labor and part expenditure for repairs, but also for any valuables if inside the car that suffered damage in the accident. This policy also compensates for any stationary object that you hit, like someone's tree or any other object that belongs to that individual.

Do you need property damage insurance?

If you are a responsible citizen and a responsible driver, you must have property damage liability insurance unless you think you can afford the entire cost out-of-pocket. Accidents happen, and it is always better that you are prepared before time. Car repairing can cost you a fortune. If someone sues you for property damage you may be needed to pay a big amount out-of-pocket. Some states require you to have state minimum property damage liability insurance.

How much property damage liability insurance must you buy?

You may buy property damage liability insurance as much as you can afford. Some states, however, have a state minimum requirement for liability for property damage which you must purchase. If you get involved in a serious accident with an expensive car, your state minimum insurance won't be able to provide enough coverage. This means that if you do not have enough coverage, you will be required to pay out-of-pocket which can cost you a fortune. If you can save with property liability insurance, you may be able to provide quite a big amount from insurance and may need to pay just a little out-of-pocket.

An expensive car may be a classic example, and besides that, if you hit someone else's property like a mailbox or even a tree or any other property, you will be responsible. Claims for property damage can cost a fortune; hence, it is advisable that you purchase coverage beyond the state minimum requirement. Property liability insurance has different limits that are set according to the various protection levels. If you increase the liability coverage limit, the policy premium gets increased as well.

How are the limits set in property damage liability?

You can have 2 main options:

Combined single limit policy
Split limit policy

Combined single limit policy provides coverage for a single amount where you can use the entire amount for bodily injury and property damage liability. Split limit policy, as the name suggests splits the amount of coverage and provides protection by dividing the amount you have for bodily injury and property damage liability. Find out more about liability limits from here.

What are the restrictions in property damage liability coverage?

There are certain restrictions to the property damage. They are:

For multiple vehicle owners: If a vehicle listed on the policy has liability limits, the rest of the vehicles must have them too.
All vehicles must have the same selected property damage policy in case of multiple vehicle owners.
Each state has set a state minimum liability insurance and this is required by all households to have.
Filings: If the filing is on any commercial property, then property damage liability is required.
Extra trailers need to give a flat fee for property damage liability.

Total Comments: 29

Posted: Mon Sep 29, 2008 04:53 am Post Subject:

What could be the most favorable liability policy limits?

I've seen many of the agents would try to establish the fact that the state min. liability limits are not sufficient. They would consider the best liability limits to be 100/300/100. This would indicate 1,00,000 worth of bodily injury for each person in an accident
3,00,000 worth of bodily injury for all injured in each accident
1,00,000 worth of property damage

Regards, ArindamSenIndies

Posted: Mon Sep 29, 2008 04:57 am Post Subject:

1,00,000 worth of bodily injury for each person in an accident
3,00,000 worth of bodily injury for all injured in each accident
1,00,000 worth of property damage

Pat, I'd like to buy a zero, please.

Posted: Mon Sep 29, 2008 05:18 am Post Subject:

Hi all, the cost of medical treatment is almost the same all over. That's perhaps the reason why people who don't fall within the category of "avg. drivers" would prefer the bottom limit for property damages associated with each accident. That's what is happening at all quarters. Crossbreed

Posted: Mon Sep 29, 2008 05:28 am Post Subject:

Hi see..
There are quite a few places wherein if you're at-fault the worth of property damages would cross 1,00,000. These are circumstances that push you to opt for high-end limits. What we'd need to remember over here is that the property damage is all about damages caused to the other person's car for which you have been at-fault.

In the past we've had instances wherein a landscaping alone had been more than 1,00,000. So, these are the most important things that we'd need to consider while deciding about our rates!
Regards, ArindamSenIndies

Posted: Mon Sep 29, 2008 06:37 am Post Subject:

The liability coverage saves the policy holder from a prospective lawsuit when he/she has caused damages to other's property or life.

The limits decided by the state authority may or may nor suffice your needs, ie if in your area the cost of health care is comparatively more you may be required to maintain a limit higher than the suggested one. The same theory goes with the property liability as well.

The minimum liability coverage, however, has been mandated by the state authorities, hence, if you're not residing in the states of Wisconsin and New Hampshire (these two states require the driver to maintain enough assets to be able to pay for the damages caused by them), you are required to maintain the liability coverage.

The limits, however, you may need to discuss with the insurance agent.

Regards,
Juanita

Posted: Mon Sep 29, 2008 10:16 am Post Subject:

Whats the importance of liability limits? Is it necessary that I should always maintain the liability limits recommended by my state?

Liability coverage in auto insurance policy is meant to pay for the bodily injury or property damage that you cause to someone else. In case of an accident, it also covers the costs for your legal bills. If someone happens to sue you after a car accident, your liability coverage will pay, but only up to your liability limit. The fact is that, your responsibility does not get over with this. If you cause an accident and damage as a result, that crosses your liability limit, you stand a high chance of getting sued for the remaining amount. Hence, it is recommended that you carry at least more than the minimum amount required to be on the safer side :)

Posted: Mon Sep 29, 2008 11:39 am Post Subject:

Is it necessary that I should always maintain the liability limits recommended by my state?

These limits are recommended they are the MINIMUM limits REQUIRED by law...and in most cases are way to low IMO..
Pa

t, I'd like to buy a zero, please.

Shot right over his head Todd... :wink:

Posted: Mon Sep 29, 2008 02:34 pm Post Subject:

I was going to say something about jet fumes but you beat me to it Lori :lol:

State minimums are incredibly pathetic. They won't even replace a vehicle and barely anything more than a stitch or two in the E.R.

I always quote 100,000/300,000/100,000 and work it from there. I show my client that the difference between 50/100/50 and 100/300/100 is less than the cost of a lunch out per month.

I also recommend Personal Umbrella Policies to everyone eligible.

Posted: Thu Aug 20, 2009 06:32 pm Post Subject: car explosion

What do you do when you have limited liability coverage and filed a claim because your car exploded but your claim is denied even though a building was damaged due to your car exploding?

Posted: Sun Nov 15, 2009 03:32 am Post Subject: Someone damages your car

Is there a limit on getting someone to fix car that they damaged and promised to fix but never fixes :?: