Property Damage Liability Insurance

Property Damage Liability Insurance

Article by Nemelou Despuez

Every driver should have a car insurance policy that covers not just bodily injuries but also property damages in the event of a car accident. According to lawyers, people should have this coverage so they will not be forced to liquidate their assets or pay out of their pockets after an accident in which they are liable.

Most states require drivers to have property damage liability. While this is not a mandatory in some jurisdictions, almost all car lenders require this insurance.

Property insurance is applicable for drivers who are found to be liable for the accident (even if they are only partially at fault). Meanwhile, this insurance policy does not cover at-fault drivers’ damaged properties.

In choosing an insurance policy that covers property damages, drivers should realize that the coverage will depend on the amount of premium rates. In some cases, policyholders will also have to use their personal money to pay anyone for his or her damaged properties.

Here are the expenses covered by most property insurance policy:

* The cost of repair for the damaged property including its parts

* Personal items which have been damaged secondarily (e.g. bags, cell phones inside the car)

* Replacement of the property which is beyond repair

When choosing for a property insurance liability, the premium will be determined by several factors such as:

* The value of the car. For newer and luxury car models, the premium insurance rates are more expensive than cheaper and older vehicles.

* The driving record of a person. Road violations, tickets, past traffic accidents will be considered by auto insurance. If people have bad driving records, they will be considered as high-risk policyholders and will be charged with higher insurance premiums.

* The amount of coverage a person has requested. If policyholders will ask the auto insurance to provide full coverage of all property damages, the insurance rate will be higher.

* The state’s law. Every state has its own minimum insurance coverage.

* The number of miles a person drives annually. The higher the number of miles traveled, the higher the chances of policyholders to encounter road accidents. With this consideration, auto insurance companies require bigger premium rates.

* The age of the driver. Teenage drivers have more expensive rates than adults because they are more likely to encounter accidents. Meanwhile, some insurance providers give large discounts to teenagers with impressive school grades and clean records.

About the Author

Consult with our skilled personal injury lawyers to help you deal with issues regarding property damages in a car accident. Visit our website and avail of our free case consultation.

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