Where does property damage insurance apply to? This type of insurance can be purchased for automobile and home policies. When applied to a vehicle, this insurance protects the vehicle owner in the event that the vehicle will caused damages to other party’s property wherein the policy holder is at fault and that he is being sued for the damages incurred. Though this insurance will only pay for the damages up to the limit described in the policy bought.
To explain further, when you have inflicted $10,000 damages to properties and that you also bought $10,000 of property damage insurance, your insurance company will take care of all the cost of damages. However, if you have only purchased a lesser amount of insurance compared to the damages incurred, then your company will just pay for the amount covered and that you will have to pay for the remainder. In these cases, the owner of the damage property will sue you for the damages, to oblige you to pay, and you have the option of fighting the lawsuit or settle with the other party. To reduce the out-of-the-pocket payout, you might as well buy a higher amount of insurance for property damage.
However, property damage insurance does not cover all damages inflicted in a car accident. For one is when your vehicle collides with another vehicle, the aggravated vehicle owner cannot sue you or obliged you to pay for the damages from your property damage insurance. Collision-related damages is another thing and outside the boundaries of the property damage. In this event, the other vehicle owner shall file a claim for the damages on collision damage insurance. And to further make things clear, property damage insurance only covers property damage and that if you caused injuries to other people due to the accident, this insurance cannot be used to cover the medical expenses thereof. Property is to property alone, not including injured people. In most states, laws dictate a person as to the minimum property damage insurance one must have but insurance agents can advise you what to have in order for you to have sufficient protection. I suggest you read more info about property and casualty insurance and claims on property damage insurance < here.