In California, property damage liability coverage is a required component of auto insurance policies. This coverage helps pay for damages to another person’s property resulting from an accident in which the policyholder is at fault. Commonly, it covers the costs of repairing or replacing damaged vehicles, fences, buildings, or other property that may be damaged during a collision. The state requires drivers to carry a minimum of $5,000 in property damage liability coverage. This ensures that individuals who are harmed by the policyholder’s actions in an accident can receive compensation for the damage to their property.
While California’s minimum requirement is $5,000, this amount may not be sufficient in accidents involving significant damage, such as when other vehicles are totaled or when there is damage to private property, like fences or structures. For this reason, many drivers opt to purchase higher levels of property damage liability coverage to better protect themselves in the event of a serious accident. If the damage exceeds the policyholder’s coverage limits, the at-fault driver may be held personally liable for the remaining costs, which could lead to financial strain. Therefore, increasing property damage liability coverage is a good way to ensure that all damages are covered, especially in accidents that involve substantial property damage.
