Top Reasons To Buy Property Damage Coverage

The purpose of property damage car insurance is to cover the repair expenses for damage done to another person’s property. In the United States, all drivers are required by law to carry at least $5,000 property damage coverage per accident.

However, many states require more than that. For instance, the state of Massachusetts only requires $5,000 in property damage coverage, but the state of Kentucky requires $10,000. The state of Maine requires even more: $25,000.

 

Benefits of Purchasing Additional PD Insurance

Unfortunately, in the event of a serious accident, the minimum coverage might not be enough to cover all expenses. For example, if you hit a vehicle worth $50,000, and the cost to repair that vehicle is $35,000, the vehicle owner could sue you for the amount not covered by your auto insurance policy.

For this reason, car insurance professionals recommend carrying at least $50,000 of property damage liability insurance, and consider $100,000 coverage per accident ideal.

 

Benefits of Physical Damage Protection

Property damage insurance covers the repair expenses for damages done to another person’s vehicle, and physical damage protection covers the cost of repairing your own vehicle.

Physical damage protection is especially beneficial when involved in an auto accident with an uninsured or underinsured motorist. For instance, say you were driving the $50,000 car, and the other motorist only carries $5,000 in property damage coverage. Rather than go through the legal hassle of suing the other motorist, you can simply cover the other $30,000 in repair expenses with your physical damage protection policy.

 

Comprehensive Auto Insurance

Another benefit of property damage protection is that it typically includes comprehensive auto insurance. The purpose of comprehensive auto insurance is cover the cost or repairs to your vehicle due to theft, vandalism, flood, or fire, in addition collisions with objects other than another motor vehicle.

You can compare physical damage protection rates online, or by contacting the Insurance Department in your state.