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Third Party Property Damage In Insurance Terms Explained

Third Party Property Damage In Insurance Terms Explained Blog

Third Party Property Damage Liability Insurance is one of the most basic auto insurance policies that drivers must-have. You can purchase this policy to cover the expenses related to damage to another person’s property, regardless of whether it’s a house, car, or any other type of personal property. However, liability coverage for Third Party Property Damage generally does not cover damage to your vehicle.

What is property damage auto insurance, and what does it cover?

Property damage insurance covers your financial liability should you cause damage to someone else’s property. Comprehensive coverage, which you pay separately, covers your property in the event of an accident. Like bodily injury coverage, property damage coverage facilitates the ability to assume financial responsibility for damage that is the driver’s fault. It operates on an accident-by-accident basis, with your insurance company willing to cover your injuries up to the limit of your policy. What is Covered in Third Party Property Damage Insurance:

  • Repair of damage to the other party’s car, including collision repair work or replacement parts.
  • We repair damage or ruin to other businesses, houses, fences, lampposts, mailboxes, etc.
  • Attorney and court fees associated with the property damage claim (depending on your terms and conditions)
  • Additional recurring expenses are resulting from the damage.

Look At Your Property Damage Liability Limits

You can usually choose to purchase limits that are higher than the government minimum. For instance, if the damage you cause exceeds the MYR 10,000 coverage limit, you may be required to pay the difference out of pocket. In the event of an accident, having a higher limit of liability coverage could save you from having to pay out of your own. The higher your coverage limits, the higher your insurance premiums will be, so it may be wise to discuss with a local insurance agent.

How Much Damage Liability Insurance Should You Pay?

Most property damage claims are less than a few thousand dollars, so unlike other types of insurance, you may not need to carry much coverage. Nevertheless, you may choose higher limits to ensure that you are sufficiently protected in the event of an accident. In recent years, however, average claim amounts have nearly doubled. However, they are still below the minimum quantities required in every state. However, as previously mentioned, getting more coverage can provide additional support should an accident result in costly car damage. It is relatively inexpensive and is relatively easy to get.

In What Way Can You File a Property Damage Liability Claim?

You can’t make claims against your policy if you cause damage to someone else’s property since property damage insurance covers damage caused to someone else’s property. Instead, property damage claims are generally made as third party claims on another person’s car insurance policy, in which you or another person claims the policy of the person who is at fault. The property damage coverage limits determine the maximum payout the insurance company will make on any single accident. If the damage caused by accident exceeds the amount covered, the claimant may sue the policyholder directly for the excess amount. It might include being sued in a civil court to get back what you owe. You can use your collision insurance if you are mainly to blame for the accident and cannot recoup enough money from another driver’s property damage insurance. Though collision insurance is recommended, it is optional and usually expensive.

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