Honda Insurance

Reader’s Question:

What is the difference between Physical damage liability and Property Damage liability insurance? or are they similar?

Diane

Manhattan, NY

Physical damage liability and Property Damage liability insurance are two different types of coverage. All states require all motorist and car owners to carry Property Damage Liability coverage, which covers damage you cause to someone else’s vehicle or property in case of an accident. Typically there is no deductible used for this type of coverage.

On the other hand, Physical Damage consist of Comprehensive and Collision coverage and is an optional coverage that protects your car for any type of damage. Collision coverage pays damage to your vehicle colliding with another vehicle or object regardless of who is at fault. Comprehensive coverage pays damage from events such as fire, theft, vandalism, weather, and windshield or animal-related accidents.

Usually collision and comprehensive coverage have separate deductibles and typically required if you are leasing your car.

Keep in mind that the term liability pays for someone else’s damages that where in you are at fault.