Property Damage

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Often mandatory, a type of liability insurance that pays for the harm you do to someone else’s car or property when you cause an accident.

Sometimes known as third-party coverage, property damage provides compensation for those not at fault in an accident. When the person files a claim, the insurance company will determine if the accident was caused by negligence, willful destruction, or otherwise. The reimbursement amount depends on the extent of the damage and/or the cost of replacing the damaged item/s.

If the case goes to court, the recovery amount in a lawsuit may be established by the evidence of replacement value, cost of repairs, loss of use, or testimony of sentimental value.

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