This coverage, combined with bodily injury liability coverage, is the foundation of any auto insurance policy and is required in most states. If property damage claims or lawsuits are brought against you and if an investigation or a court finds you to be legally responsible for damages to property, your property damage liability insurance will pay up to your policy limit for repair or replacement of things like someone else’s car, light posts, or even buildings. Property damage liability coverage does not pay for the damage to your own property; damages to your property are covered under the optional collision and comprehensive coverage.
There are different limits of property damage liability insurance. Different limits of coverage are offered to accommodate various levels of protection. If you are found to be responsible for a serious accident with damages to several vehicles, or even one expensive vehicle, your state’s minimum insurance may not cover you adequately. The minimum property damage liability in the state of California is $5,000. It is a good idea to consider and purchase higher limits than what your state requires.