Does property damage coverage fix my vehicle if the other driver is at fault and has no car insurance?
No. Collision insurance pays for damage to your car resulting from an auto accident. It does not matter who was at fault. If the other driver was at fault, your company may try to recover the amount they paid for your damages from the other driver or his insurance company.
Property damage coverage is one of the standard auto insurance coverage areas – it is required by law that you have both personal liability and property damage insurance on any vehicle that you drive. Property damage coverage is insurance for damage to property – such as a building or light pole. Property damage coverage is ‘combined’ with personal liability coverage (known in the insurance industry as PL/PD) and together this insurance package covers you for almost all accidents, upsets and collisions that you are involved in. Property damage/personal liability insurance is the most important type of insurance that you will have.
The property damage coverage on your car insurance policy is also known as property damage liability coverage. Property damage liability coverage is one of the two coverage types required by law in most states.
Subsequently, property damage coverage is one of the most important types of coverage that you can have on your auto insurance policy.
If you damage your own property in a collision, you can decide whether or not you want to go through your insurance and claim the damage, or fix the damage yourself. If you damage someone else’s property, you should consider that they will likely not be as flexible if you want to repair the damages yourself and will likely expect that you go through your insurance.
Damaging someone’s property or car can be quite expensive. A new car costs over $25 000 today and if you destroy/total that vehicle, you are on the hook for the full price tag of replacing that car. If you cause a collision which destroys a more expensive car, say a Porsche, you would be liable for $50,000. If you hit someone’s home or a building, the structural damage that could be caused could easily soar to $80 000 and higher. These figures are why it is vital that you have property damage/personal liability insurance – this type of insurance is the cheapest (believe it or not) and is something that you really can not live with out. While the law states you must have personal liability and property damage, their limits that they require are not enough to cover yourself in the event of an accident or collision. Be sure to talk to your insurance agent about what you really need.
It is important to remember that you could never really have too much coverage—the highest levels of insurance are there to cover you and the expenses in the event of a collision or accident. They do happen—they are avoidable but they do happen. If you are one of the lucky people who have not had a collision, your rates will be even lower. If you are one of the many people who have had an at-fault collision of any type, you can expect that your insurance rates will be higher. The more collisions and moving violations you have on your driving record—the higher you can expect your insurance payments to be.