Property ownership is everyone’s right and any damages caused to them should be made good respecting the ownership. People buy homes and commercial properties to use or rent. They have gardens and spend a lot of money in the up keep of their properties. You can see automobiles as property too.
As a driver and owner of a vehicle you will have to consider paying any damages you caused. Even you don’t your state has already dealt with this issue and made it mandatory to buy liabilities coverage that include property damage. Liability policies have two parts; injury and damage protection. So, people claim on third party policies for their injuries and losses.
This could be anything from running over a bicycle to smashing into your living room. Most damages are small like hitting the fence or running over a garden ornament. People are entitled to compensation whatever the damages. You can either buy auto insurance liabilities coverage or pay them out of your pocket. You can actually have coverage and still want to pay small claims out of your wallet. If you have the cover you have the choice to make a claim or not.
The biggest of property damages concerning auto insurance is to automobiles on the roads. Traffic accidents are the main cause of loss to people and insurers. A single road accidents can reach up to a million dollar claim with all the repairs, write off, road cleaning and so on. Local authorities can demand payment from your insurer for the damages that was caused to road structures.
That is why you are highly advised to buy sufficient level of third party coverage to pay for any claims against you. You shouldn’t think or hope that the minimum set by your state is going to be enough. In some cases they are actually joke and noway sufficient to pay for claims. This would put you in a very difficult position financially and morally.
The second concern is your own property damages. Many people spend all their money on cars. It is the largest investment in their lives and they would be deeply saddened if they lose it. That is why they are happy to pay the premiums and get insured properly.
You would also be required to insure your automobile more than sufficiently if you have a loan on it. Your lender will insist on certain level of protection and they will not approve the loan without seeing it. Also, they can enforce this requirement in the futures if you fail to buy the demanded cover. They can force buy a policy on your behalf and make you pay for it.
You would need at least collision and comprehensive coverage to insure the losses your auto may suffer from various perils. These include theft, storm, flood, accidental damage like a fallen object from a roof of a building and crashes. A simple full coverage vehicle insurance policy package would provide you protection from most of the property damages you may suffer.