Understanding Property Damage Policy Limits
In Massachusetts, if you own a private passenger vehicle, you are required to have certain types of car insurance. One of these is property damage coverage, which helps pay for damage you might cause to someone else’s property in an accident, including their car or house.
In this blog, we’ll explain what the property damage part of your policy covers, what it doesn’t cover, and the policy’s limits.
Property Damage Policy
Massachusetts law defines property damage policy as, “pays for damage to another person’s property when you, a household member, or another driver you allow to use your car cause accidental damage to another person’s property.”
What Property Damage Covers
If you’re at fault in an auto accident, your property damage policy covers:
- Damage or destruction to houses and businesses, including but not limited to: fences, mailboxes, utility poles, road signs, trees, and landscaping.
- The other driver’s vehicle repair costs.
- Your legal fees if someone else makes a legal claim against you.
- Lost business income because of the accident.
What Property Damage Doesn’t Cover
Your property damage insurance will not cover:
- Medical bills.
- Property damage caused by someone using your car or another automobile without your consent.
- If you use your automobile for a ride-sharing job, such as Lyft or Uber.
- If your automobile is being used by anyone whose business is selling, servicing, repairing, or parking autos.
Property Damage Limits Required By Law
Your auto insurance policy must have a minimum limit of $30,000. However, many drivers purchase additional coverage, such as Comprehensive Collision Coverage or Medical Payments Coverage, to help close the gap between coverage minimums and actual costs in case of an accident.
FAQ:
Q: What happens if I don’t have insurance?
A: Driving without insurance in Massachusetts is illegal. However, if you do so and get into an accident, you can expect fees and penalties such as:
- Suspension of your driver’s license
- Reinstatement fees for suspended licenses
- Loss of your license plate
- Possible criminal charges
Whether you’ve caused an accident or are a victim of someone else’s negligence, a seasoned auto accident attorney can provide the necessary protection and legal guidance you need.
Call us today at 1-800-466-3130 for a free consultation about your auto accident and to learn more about how we can help and protect you.
