What is covered if I damage someone else's property with my car?

A basic auto policy has several different types of coverage. There are two types of liability, bodily injury to others and property damage.

Your bodily injury liability coverage applies to injuries that you, as the policyholder, cause to someone else. You and your family members that are listed on the policy are also covered when driving someone else's car as long as you have permission to drive the vehicle.

It is extremely important to have enough liability coverage. Consider this, if you are involved in a serious accident you can be sued, and most likely it will be for a large amount of money. If you only have the state minimum of required coverage, your personal assets, like your home and savings, are in jeopardy.

Now let's talk about if you damage someone's property. This is where property damage liability comes in. Let's say you somehow manage to run through your neighbor's new privacy fence. Property damage liability would most likely cover this. This type of coverage pays for damage you, or someone driving your car with your permission, may cause to someone else's property. This coverage applies to other's vehicles, fences, buildings, etc. Also good to know is that there is not a deductible with liability coverage.

Something to consider instead of limiting coverage is to increase your deductible amount on a higher limit policy. Your premium will be less and your coverage will be more.