Auto insurance should not only protect your car. It should also cover damage to other people’s properties. If you think about it, it makes perfect sense. Accident scenes are not limited to cars colliding with other cars. Therefore, property damage coverage for auto insurance is an essential protection for anyone driving a vehicle.
Why You Need Property Damage Coverage for Auto Insurance
Imagine you’re driving down a residential road and collide with another car, pushing both into a nearby fence. Or perhaps you’re driving down an icy road alone in the middle of a snow storm, lose control, spin out, and crash into the side of someone’s house. Whether an accident involves one or multiple vehicles, there’s always a chance of it involving a nearby property. If you are at fault for such an accident, you are responsible for the repairs. Having property damage coverage ensures that you won’t have to pay out-of-pocket.
What Property Is Covered
If your auto insurance policy includes liability coverage, there should be property damage coverage within that. It would cover damages caused by you driving any vehicle, someone else driving your vehicle, or a member of your household driving another person’s car (all with permission, of course). It includes any building, structure, or other part of a property. This includes the house itself, fences, poles, lawns, sheds, etc. However, it does not include damages that you may cause to your own home. That will fall under homeowner’s insurance instead.
As with all types of insurance, there is a dollar limit to your coverage per accident. Should damages exceed that amount, you would be personally liable. Contact your insurance company to confirm that you have liability coverage and to determine whether you should increase it or purchase an additional umbrella policy. For more information on property damage coverage for auto insurance or to obtain a free quote, contact Eagle Trust Insurance.