Let’s Talk About Auto Insurance: Liability Coverage- Property Damage

Yesterday we discussed the first part of liability coverage called bodily injury coverage. The second part of liability coverage is called property damage liability. Property damage liability pays for the damage that the liable party causes to another vehicle. To learn more about liability check out the blog from yesterday about bodily injury liability.

So, what does property damage liability cover? Property damage liability will cover the damages to any property of the other party(s) involved. This, of course, includes their vehicle, but it can also coverage things such as buildings and fences that you may collide with. Property damage liability will not cover damage to your own vehicle.

Is property damage liability insurance required? Yes, in the state of Colorado you are required to hold $15,000 of property damage liability. This means that your insurance will cover up to $15,000 in damages to the other party’s vehicle or property if you are liable. As was true with liability coverage, you are able to purchase higher coverages. It is a good idea to purchase higher limits if your family can afford it to help protect your other assets. See yesterday’s blog for a more detailed explanation of why it is important to buy higher limits.

Now that we have talked about bodily injury and property damage liability separately, let’s bring them together. Together, these two types of insurance are known as your minimum liability insurance coverage. As a driver you are required to maintain these coverages. In Colorado the required coverages are 25/50/15. This means $25,000 of BIL per person in the other vehicle or $50,000 combined, and $15,000 for damage to property. This is the only kind of insurance you are required to carry as a driver, however, as will be discussed in the coming posts it is a very good idea to purchase other types of insurance as well.

If you have been in an accident and you think the other party may be liable, give us a call today. Your consultation is always free and we will fight to get you the compensation you deserve.