Legal Definition Under Georgia State Law
Property damage liability insurance pays for damage to someone else’s car that you cause, up to the policy limits. It will also often cover property located in the vehicle as well, not just the car itself.
You are required to carry a minimum of $25,000 in property damage liability insurance in Georgia. This amount is for the entire accident; it doesn’t depend on how many people are in the crash or how many vehicles may be involved. You are required by law to carry this insurance because Georgia is a “fault state,” which means that the driver who caused the accident is responsible for the damages and injuries that they have caused.
What does property damage liability insurance cover?
The most common claim under property damage liability insurance is damage to another vehicle. But, this type of insurance can also address damage to the following items:
- Rental costs for renting a car while theirs is being repaired
- Property damage to items inside a vehicle (often electronics)
- Property that is not related to a car, such as buildings, mailboxes, or other items
Property damage liability insurance does not cover damage to the at-fault driver’s car after a car accident. It is specifically used if you have damaged someone else’s property.
What is the difference between property damage liability insurance and physical damage insurance?
Several types of property damage coverage may be available for your vehicle. Property damage liability insurance covers someone else’s vehicle while physical damage insurance will address damage to your own car. There are two types of physical damage insurance available in Georgia:
- Collision coverage. Collision insurance coverage will help you pay for your own damage to your car, regardless of who was at fault in an accident.
- Comprehensive or “other than collision coverage.” This type of property damage insurance will address other property damages like vandalism, fire, or theft.
Some insurance policies have all of these available coverages while others will have one or the other. Generally, if a driver has the bare minimum liability coverage, then they likely won’t have comprehensive or collision coverage, but not always. Your insurance policy should set out which type of insurance you have.
What happens if my car is totaled after an accident?
The property damage liability coverage will pay for the repair of your vehicle up to the policy limits. But, there are circumstances where your car is a total loss and repairing the vehicle would cost more than the car is worth. In those circumstances, the other driver’s property damage liability coverage should give you funds to replace your vehicle. In those cases, you may be able to buy another car, or the insurance company will provide you funds for the value of your car.
If you have been in a car accident and you are having trouble getting the other driver’s insurance company to pay for your property damage, call John Foy & Associates. We can help you get the funds you need to make necessary repairs or purchase a new vehicle. Fill out the form to your right or call us at 404-400-4000 to get your FREE consultation today.
