Property Damage (PI) liability automobile insurance is
required in most states. If a driver damages another's property
during an accident and the accident is the driver's fault,
the policy will pay for damages. Typically the amount of damages
will be determined by an insurance adjuster who will then
make an offer to the person whose property was damaged.
Most states list their required automobile insurance
as three numbers, such as: 25/50/25
The first two numbers refer to bodily
injury (BI) liability insurance maximum coverage but the
last number is the property damage maximum coverage amount
in thousands of dollars. In this example the insured would
be covered up to $25,000 property damage per incident or accident.
Many states require that the driver of a motor vehicle provide
proof of adequate property damage liability insurance coverage
at the time of registration, after an accident or when driving.
Non-compliance can result in fines, imprisonment or license
and registration suspension.
While a state may set the minimum coverage for property damage
auto insurance, a policy holder can buy substantially more
than is required by law. Generally this will cost less, on
a percentage basis, than the minimum insurance.
Other Auto Insurance Terms & Definitions
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