What does property damage cover in your auto insurance policy?

Auto insurance property damage liability covers an accident where you were at fault and caused damage to someone else's property.  Make sure you check your auto insurance policy for your coverage limits to make sure you have enough coverage. 

Lets say you run a red light and total a brand new BMW.  Lets say it's a $60,000 BMW. You property damage would pay to fix damages to that car.

What happens if you only have $50,000 limit for auto insurance property damage coverage and the damages to the BMW are $60,000?  Well you would be personally responsible for the remaining damages that you caused. So in this case you would have to fork out $10,000 of your own money.

Lets go with another example. 

Let's say you cause an accident while driving on the highway and you cause a semi to jack knife. Then what?  Well, you would not only be responsible for the damages to the truck but also the load he might be carrying. If he is transporting a load  of new flat screen televisions then you better make sure you have great property damage limits to cover you in a case like this. If not you could be paying for it for the rest of your life. 

You should know your insurance coverage.  If you have a good agent then you should already know how property damage works. If you didn't know, it might be time to call us to discuss your auto insurance coverage.