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What Is Property Damage Coverage and How Does It Work?

Property damage coverage helps with repairs to someone else’s property due to a car accident you caused. This coverage may cover the cost of repairing or replacing other vehicles involved in an accident and can also apply to damaged buildings and structures, like fences, garages, and utility poles.

Nearly every state has minimum requirements for both bodily injury liability coverage  and property damage liability coverage.

For instance, property damage coverage in Massachusetts is one of the four types of mandatory, or compulsory, car insurance coverages required for all private-passenger vehicles. The other three required are bodily injury to others, personal injury protection (PIP), and bodily injury caused by an uninsured auto.

What property damage covers

Property damage coverage is on a per-accident basis and pays for damage to another person’s property or to another person’s vehicle if you’re in an at-fault accident. Among the things typically covered would be:

  • Damage or destruction to houses, businesses, fences, mailboxes, utility poles, road signs, trees, landscaping, etc.
  • Repairs to another person’s vehicle.
  • Legal fees if the driver is involved in a property damage claim.
  • Lost income from a business closure due to the accident.

What property damage doesn’t cover

There are some circumstances in which property damage coverage would not apply:

  • While your auto is being used as or is available for use as a vehicle for hire through a ride-sharing program such as Lyft or Uber.
  • While any auto is being used by anyone during his or her employment in the business of selling, servicing, repairing, or parking autos.
  • When the property damage is caused by anyone using an auto without the consent of the owner.
  • While an auto is being used in any racing, speed, stunting, demolition contest, or activity.
  • Medical bills (Medical payments coverage may help defer these costs).

Insureds should check their auto policies for other restrictions or talk with their independent agent if they’re not sure of their coverage.

How much property damage coverage is needed?

Most states require drivers to have a legal minimum amount of property damage coverage. For instance, the legal minimum limit for property damage coverage in Massachusetts is only $5,000 per accident.

While you may have property damage coverage, keep in mind that with the cost of parts, repairs, and specialized labor rising, drivers must select limits that meet your needs for the right amount of protection for your peace of mind.

Generally, property damage coverage is available up to $250,000. Your insurance agent can help you find the right limits for your insurance policy.

If you still have questions about how property damage protects you or your auto policy with MAPFRE, feel free to contact an independent agent in your state. And if you’re not insured with MAPFRE in Massachusetts, get a fast, free online quote today and see how much you could save!

Please Note: This is meant only to provide general information about commonly available insurance coverages. Except as expressly noted, this content is not intended to describe any specific coverage offered by MAPFRE Insurance. No coverage is provided, bound or guaranteed by this article. Available coverages, credits and discounts vary from state to state and are subject to eligibility criteria and policy terms/conditions, which will control in the event of conflict between this article and your insurance policy. For information about your policy, please review your individual policy contract and speak with your insurance representative.

MAPFRE Insurance® is a brand and service mark of MAPFRE U.S.A. Corp. and its affiliates, American Commerce Insurance CompanySM (Cal. COA 4928-8); Citation Insurance CompanySM; The Commerce Insurance CompanySM; Commerce West Insurance CompanySM (Cal. COA 1372-2); and MAPFRE Insurance CompanySM (Cal. COA 3039-5). Not all products available in all states.

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