Vehicle insurance is required in Florida. Owners need to invest at least the bare minimum of bodily injury and property damage liability insurance.

Automobile insurance typically includes coverage for damage to third-party property. It helps cover the cost of fixing the other person’s car or property if you happen to crash into it.

Automobile insurance helps pay for the necessary repairs if you cause an accident where another vehicle or property, like a fence or a building, is damaged.

Property damage liability policies do not typically cover repair costs to your own car or property. To cancel out the expense of fixing your car, collision coverage is just one option among many others.

Definition Of Property Damage Liability

Along with physical injury liability, damage liability insurance covers damage to another person’s property in the event of an accident caused by the insured driver. Property damage liability insurance is activated if you cause injury to another person’s vehicle or property.

The Process Through Which Property Damage Liability Insurance Operates 

Vehicle insurance policies typically include several types of coverage and damage liability insurance is just one of them. There are some of the common forms of protection offered by car insurance policies: 

Bodily Injury Liability

If you or a family member are responsible for someone else’s injuries, bodily injury responsibility will help cover their medical expenses and lost wages. 

Medical Payment or Personal Injury Protection (PIP)

If you or a passenger become hurt in an accident. Medical payments coverage or PIP would reimburse you for related expenses like hospital bills, lost income and even funeral expenses. 

Collision 

If an accident occurs, the policyholder can collect on their collision insurance coverage, which will cover the cost of repairs or a new vehicle. 

Comprehensive 

Losses incurred due to theft or natural disasters are covered by comprehensive insurance.

Uninsured/Underinsured Motorist Coverage 

With this insurance, you don’t have to worry about paying for your damages out of pocket if you get involved in an accident with someone who doesn’t have insurance or doesn’t have enough insurance to cover them. 

Property Damage Liability 

If you are at fault in an accident, damage liability insurance will pay to repair the other party’s vehicle or property like a fence or a building. It will also cover the cost of cleaning up the scene after an accident, including removing debris like broken signs or trees.

Common limits for liability insurance are 50/100/50 where 50k is the smallest amount and 100k is the largest. The first figure is the total amount of coverage you have for any occurrence and the third represents the liability coverage for property damage. 

Since property damage liability doesn’t pay for your car repairs or medical bills, you must purchase additional coverage such as collision and comprehensive insurance. 

To What Extent Should Your Financial Plan Accommodate Property Damage Liability Insurance Costs?

To protect yourself financially in a lawsuit, it is prudent to have adequate liability insurance. For example, wealthy drivers should carry comprehensive coverage that includes bodily injury and property damage liability. 

Take the minimum damage liability of $100,000 into account. For example, if you have an accident that damages several vehicles, your $100,000 in coverage limitations will still be your responsibility. 

Damage caps of 100/300/100 translate to 100 thousand dollars for each injured person and 300 thousand dollars in total damages per accident. 

Property damage is limited to $100,000 per incident 

In most cases, the state-mandated minimum limits on your liability insurance will not be enough to cover your actual finical exposure. 

How Much Does It Cost For Coverage In Case Of Property Damage?

In Florida, it is required to have automobile insurance against property damage liability since it is mandated by law in most states. The cost of your auto insurance policy is determined by several factors including your geographic region, the types of vehicles you drive, your driving record, your age, even your gender and the coverage limits that you select. 

Liability-only insurance is typically insufficient for most motorists. Most insured drivers (75%) choose to increase their safety by purchasing collision insurance. 

When A Property Is Damaged, Who Do You Contact About Making A Claim?

You will never have to file a claim on your damage insurance coverage because it only applies to harm you cause to other people’s property. Instead, you or a third party will typically lodge a claim against at the at-fault driver’s third-party liability insurance in the event of property damage. At any case, no matter who’s fault the accident is make sure to have a lawyer on your side.

If you cause an accident and are deemed mostly at fault but other drivers’ property damage insurance doesn’t cover the total cost of the damages, your collision insurance will. Collision insurance is highly recommended, although it is not required and can be expensive. 

Conclusion 

Vehicle insurance is a need. Owners should invest in at least the bare minimum of bodily injury and damage liability insurance required by their state.