What does "property damage liability" insurance cover?

"Property damage liability" insurance specifically covers the cost of damage that the policyholder causes to another person's property during an accident. This type of insurance is vital as it protects the policyholder from financial responsibility when they are at fault in a collision that results in damage to someone else's property, such as their car, home, or other personal property.

This coverage is designed to not only help the insured comply with legal requirements for minimum insurance limits but also to reduce out-of-pocket expenses associated with accidents where the policyholder is liable for property damage. In essence, it ensures that the policyholder can fulfill their financial obligations to those affected by their actions on the road.