In an auto insurance policy, property damage liability coverage protects you up to the policy limits in the event you are deemed to be at fault in an accident. This coverage is one of the most basic forms of coverage of car insurance polices. With the exception of New Hampshire and Wisconsin, all states and the District of Columbia require drivers to purchase this form of liability coverage.
Minimum property damage liability coverage amounts vary by state. California, Massachusetts, New Jersey, and Pennsylvania have minimum coverage amounts of $5,000 per accident while seven states (Alaska, Maine, Mississippi, Nebraska, New Hampshire, North Carolina, North Dakota, Rhode Island, and South Dakota) have minimum coverage amounts of $25,000 per accident. The majority of states require minimum coverage amounts between $10,000 and $15,000 per accident.
Auto repairs can be very expensive. What appears to be a small dent can cost thousands of dollars to fix. Drivers should get the amount of coverage you can afford. The minimum property damage policy limits are often grossly insufficient following a significant accident.
If the damage involved in an accident exceeds your policy limits, it could be significant enough to force you to liquidate property, savings, other assets, or your future earnings to pay for the damage. It is important that drivers have enough coverage to protect their assets.
Insurance companies do allow you to purchase property damage liability coverage for well beyond the state required minimum limits. The coverage also pays for legal defense if another party files a lawsuit against you as the result of property damage loss from an accident.
Choosing the insurance company that offers the needed amount of coverage at the best possible price is important. Learn more about types of coverage and the best car insurance companies at http://www.bestcarinsurancecompanies.net.
Article Source: http://EzineArticles.com/?expert=Jason_F._Nelson
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