What does Property Damage Coverage cover?

Standard coverage that protects property when you’re at fault


What is Property Damage Coverage? 

If you’re responsible for an accident, Property Damage Coverage will provide the financial security you need. It will cover the cost of repairing or replacing another person’s property, ensuring you are not burdened with a significant financial loss. By ‘financial security,’ we mean that you won’t have to worry about paying for these damages out of your own pocket, potentially saving you thousands of dollars.
This typically means damage to someone else’s car. Still, it could also apply to any other type of property you damage in an accident, such as a fence, a building, a signpost, or even a parked motorcycle or a tree in someone’s yard.


Standard coverage for when you’re at fault


What does Property Damage Coverage cover?

  • Damage to another vehicle
  • Damage to another person’s property

What else should you know?

  • If the cost of damages exceeds the amount of your coverage, you are responsible for the remaining cost
  • You can choose a higher limit for this coverage, meaning you’ll be covered for a higher amount if you’re in an accident

How much property damage liability do I need?

Property Damage Liability, sometimes called PD, is one of the coverages required by most states. It’s important to note that ‘Property Damage Coverage’ and ‘Property Damage Liability’ are often used interchangeably, but they refer to the same thing. Each state sets the amount of coverage required. Please note that what’s required versus what you may need can be different.

A few things to ask yourself when choosing how much Property Damage Coverage you may need are

  • Do you own a home or other expensive items?
  • Do you usually travel in high-traffic areas?
  • Are there a lot of costly vehicles driven in your area like BMW’s, Mercedes’, Tesla’s, Porsche’s, etc.?

If you answered “Yes” to any of these questions, you may want to consider raising your coverage. You can also use our car insurance coverage calculator to help you determine how much you may need.

What happens if property damage exceeds coverage?

Every car insurance policy has a limit on what will be paid if you’re at fault for an accident. This is why it’s crucial to ensure you have enough coverage to protect yourself if you’re involved in an accident. Without sufficient coverage, you could be left with a hefty bill to pay out of pocket. The ‘limit’ refers to the maximum amount the insurance company will pay for damages. For example, if your limit is $ 20,000 and the total damages are $ 25,000, you would be responsible for the remaining $ 5,000.


What Happens if Property Damage Exceeds Coverage?

Your state requires $20,000 in Property Damage Coverage, which is what you choose. Driving to work one day, you rear-end a car, pushing that car into the car in front of it, pushing that one into the one in front of it. This scenario is a typical example of how Property Damage Coverage works. In this case, your coverage would apply to the damages caused to the other vehicles involved in the accident.

A few things to ask yourself when choosing how much Property Damage Coverage you may need are

  • Car 1’s damage: $10,000
  • Car 2’s damage: $8,000
  • Car 3’s damage: $5,000
  • Total: $23,000

In this example, your policy would cover up to your $20,000 limits, leaving $3,000 that may need to be paid out of pocket by you. When you insure your car with help from Risk Coverage. we’re committed to trying to settle all damages within your limits, ensuring your peace of mind. However, this may only sometimes be possible. In these cases, the other person/people may then try to collect from you directly. If you don’t have enough coverage to pay for these additional damages, you could be sued and forced to pay out of your own pocket, potentially leading to financial hardship.

Beyond increasing your limits, you may also be interested in adding an umbrella insurance policy. An umbrella insurance policy is an additional type of coverage that can provide extra protection beyond your regular car insurance. It can help cover the costs that exceed the limits of your other policies, such as Property Damage Coverage.

You can find this information in your car insurance policy documents. Look for the section that details your coverage limits, often labeled as ‘Coverage Limits’ or ‘Policy Limits ‘.Property Damage Coverages are sometimes written as number 1/number 2/number 3. This format is used to represent the different types of coverage and their respective limits. Each number corresponds to a specific type of coverage, and the number after the slash represents the limit for that coverage.


  • Number 1 = Bodily Injury liability limits per person (the max per person that will be paid)
  • Number 2 = Bodily Injury liability limits per accident (the max per accident that will be paid, with number 1 still being the max per person)
  • Number 3 = Property Damage Liability limits per accident (the max that will be paid for damages to property)

For example, this could look like 100/300/100. Here it’s

  • $100,000 of Bodily Injury Coverage per person
  • $300,000 of Bodily Injury Coverage per accident (meaning if you injure multiple people in an at-fault accident, this amount has a max of $100,000 for each person).
  • $100,000 of Property Damage Coverage for damages to property

// faq

Common questions about car insurance

What is car insurance?

First, let me start with the basics—an individual must purchase liability insurance for their vehicle (and thus its owner) to be considered “insured” under state law. This rule applies across all circumstances- even if no accidents take place!

This protection exists so others may not suffer financially due to injuries sustained during a collision. We also offer Collision insurance if your vehicle needs repairs after an accident and comprehensive coverage if your car is vandalized.

How can I save money on car insurance?

The first way to save on car insurance quotes is by ensuring that your vehicle meets the minimum safety standards.

This will also help avoid costly repairs in case of an accident, leading you into a higher premium rate category due to being risky drivers!

You should consider reviewing any existing coverage aspects as well if they’re not up-to-par with current market rates – this includes both physical damage protection beyond merely bumper-, windshield-, comprehensive and collision-.

How do I file a car insurance claim with Risk Coverage?

Like many of our policyholders, the company that provides you with car insurance can be a life-saver, and we’re here to help. Log onto Risk Coverage’s website or call us if your car needs immediate attention, so we’ll ensure it gets the best care possible!

Should I get an umbrella policy too?

If you’re involved in an auto collision, and the other person’s fault is unclear, it may be time to consider getting extra protection.

Umbrella policies offer increased financial compensation for injuries, damage done on behalf of a covered individual that results from accidents occurring outside their control (such as driving into traffic), plus legal fees that will arise.

What are auto insurance coverages available?

Insurance for auto policies varies by state, but the basics of an auto policy include multiple coverages.

Some common types are liability (to protect against physical injury), comprehensive (for damage), and collision(to assist with reporting accidents).

You might also need medical payments or personal effects coverage if you rent cars regularly due to various restrictions in some states – these will depend entirely upon your specific situation!

Does car insurance cover rental cars?

Your car insurance may provide coverage for rental cars. To find out, call Risk Coverage to see if your current auto insurance policy covers rental vehicles.

Risk coverage will never let you walk away without vehicle rental. If you have full range, why? Because in certain situations, for $2 a month, you can be covered if you get in an accident and need a vehicle to continue getting around.

There are some benefits of having Credit cards since some provide discounts for renting a car. Some credit cards offer additional coverage but make sure you understand the terms and conditions, including any limitations on the type and amount of coverage.

What do I need to get an auto insurance quote?

To get the most accurate quote on new policies, you need to supply your car’s make, model, year, and information about your driving history. You’ll need your vehicle identification number (VIN) handy to purchase an auto policy. We’ll also ask for your driver’s license number.

Not sure which coverages to select? Our car insurance calculator can help you estimate your coverage needs. Ready to get started? Get a quick car insurance quote online or call us.

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