Auto Insurance 101: Understanding Property Damage Liability

In Texas, all licensed motorists are required to carry a minimum amount of liability car insurance. You need to have minimum bodily injury coverage of at least $30,000 for each injured person, up to $60,000 per accident. The other type of coverage you are required to carry is a minimum of $25,000 in property damage liability insurance.¹

Policies might list liability coverage like this: 30/60/25. The first two numbers apply to the bodily injury coverage, and the last, which we will focus on, is the property damage coverage. This type of insurance provides coverage to help pay for damages to another person’s property for an accident you caused.

It will pay to fix damage to another person’s vehicle, yard, fence, mailbox, home, store, and so on. It also covers damages to public property, such as telephone and electric poles, street lights, etc.

It is important to keep in mind that property damage liability does not cover your vehicle or any of your personal property in the vehicle that was damaged at the time of the accident. If you are found to be at fault, you would need collision and comprehensive insurance coverage to cover your own property damages and losses.

Should I Have More than the Minimum Required Coverage?

If you consider that the average costs of a brand-new vehicle are around $30,000, it can be a good idea to purchase a higher coverage amount through your insurance agent. To help you see why having a higher coverage amount is better, let’s look at two examples.

Example 1: Minor Property Damage Accident

You are on your way home and a child runs out in front of your vehicle. You swerve to avoid hitting the child and, instead, hit your neighbor’s parked car. Since you weren’t going that fast, the damage only amounts to $6,000. Your property damage liability coverage would pay the full amount so your neighbor could get his car repaired.

Example 2: Major Property Damage Accident

You are driving down the highway and the tire on your car blows out, causing you to lose control of your vehicle. In the process, you hit two other vehicles. One of the cars you hit is severely damaged and is totaled, with a replacement cost of $35,000. You also caused $10,000 in damage to the other vehicle. Your insurance would pay out a total of $25,000 for all the damage, so you would still owe $20,000 in damage costs out of your own pocket.

Filing a Property Damages Claim

After being involved in an accident, contact your insurance company to report your property damages. Keep in mind if the amount claimed is more than the amount of coverage the other person has, you will need to sue them to recover the difference.

After filing your claim with your insurance company, it is a good idea to speak to a car accident lawyer. They can help determine the amount of damage reimbursements you are entitled to receive and can even help when insurance companies are trying to settle for the lowest amount possible or trying to get out of paying you by making it look like you were at fault.

For a FREE consultation, please feel free to contact Schechter, McElwee, Shaffer & Harris, L.L.P. at 713.574.5089 to speak with one of our Houston, TX auto accident attorneys today!

Source:

1. https://www.tdi.texas.gov/pubs/consumer/cb020.html