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Do You Need Property Damage Insurance?

car crashed into a tree with property damage insurance

You likely protect the personal property inside your home with renters’ or homeowners’ insurance. While both are essential policies, you should also include property damage insurance for your vehicle. This coverage will protect you if you’re involved in the accidental destruction of property. Learn more about property damage insurance to see why you should consider this coverage. 

What Is Property Damage? 

Property damage occurs if you harm or destroy another person’s property during an accident. For instance, driving into a vehicle and denting it. You can also damage other types of property, including trees, lamp posts, and buildings. 

Types of Property Damage

There are also different types of property damage. The damage might lead to expensive repairs, loss of use, or diminution in value. After a property damage appraisal, the claim adjuster will determine the type of accidental property damage. That is an important step in paying a claim. 

What Is Covered Under Property Damage Auto Insurance?

If your car damaged property, you would use your property damage auto insurance to cover the repairs or loss of the property. Most states require that motorists carry at least the minimum amount of property damage liability coverage. However, experts recommend that you purchase at least $35,000 in property damage liability coverage. If you total the other driver’s vehicle, your insurance can compensate the driver without you paying out of pocket. 

What Is the Difference Between Collision and Property Damage Insurance?

woman with phone on the side of the road with a crashed car with property damage insurance

You might have collision and property damage insurance on your vehicle. As you now know, your property damage liability insurance covers the cost of repairs to someone else’s property. However, you might damage your vehicle, as well. If you do damage your vehicle, your collision insurance will pay for it. You might need to pay a deductible before your collision insurance kicks in. 

What Is Property Damage Buyback? 

Insurance companies don’t want to pay tons of claims for minor losses. You’re unlikely to claim a small loss if you have a high deductible. However, you probably don’t want to have a high deductible because if you need to use your insurance for a significant claim, you would have to pay it first. That can be cost-prohibitive.

The solution is the property damage buyback deductible. With this, you will have a high-deductible policy, preventing you from making claims for small losses. However, if you suffer a major loss, the insurance company will reduce your deductible when you file the claim. For example, if you have a $10,000 deductible, the company might drop it to $200 for that claim. Then, your deductible will go back up. 

Getting Property Damage Insurance

As you can see, it’s wise to get property damage insurance. Begin the process by comparing quotes from different insurance companies. Then, you can purchase a policy that will start immediately. Once you’re insured, you will have more confidence when you’re on the road. You’ll know that even if you are in an accident, your finances will be protected.

If you are getting ready to hit the road again, make sure you have the car insurance coverage you need. Freeway can help you save up to $839* on your policy, get a free car insurance quote online, over the phone, or at one of our offices near you.

*Based on a Q1 2020 study of Freeway Insurance customers who reported saving when they switched.

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