Property Damage Liability

This coverage, combined with bodily injury liability coverage, is the foundation of any auto insurance policy and is required in most states. If property damage claims or lawsuits are brought against you and if an investigation or a court finds you to be legally responsible for damages to property, your property damage liability insurance will pay, up to your policy limit, for repair or replacement of things like someone else's car, light posts, or even buildings. Also, property damage liability coverage provides for your legal defense against those property damage claims or lawsuits, should it become necessary. Property damage coverage does not pay for the damage to your own property, damages to your property are covered under the optional collision and comprehensive coverages.

There are different limits of property damage liability insurance. Different limits of coverage are offered to accommodate various levels of protection. If you are found to be responsible for a serious accident with damages to several vehicles, or even one expensive vehicle, your state's minimum insurance may not cover you adequately. An objective in selecting limits of any liability coverage should be to purchase coverage equal to the net asset value that you have available and could reasonably lose in the event of causing damages to others. It is a good idea to consider and purchase higher limits than what your state requires.

Each state's Financial Responsibility Law requires minimum property damage liability limits. The limits for each state where the Club sells insurance are as follows: