What does the term “property damage liability” cover in an auto insurance policy?

The term “property damage liability” in an auto insurance policy specifically covers the damages that the insured may cause to another person's property while operating a vehicle. This typically includes the cost to repair or replace the damaged property, which often involves other vehicles, fences, buildings, or any other personal property that may be affected in an accident for which the insured is found to be at fault.

Understanding the function of this coverage is crucial for both the insured and insurers, as it helps protect the insured from financial loss due to lawsuits or claims arising from accidents they cause. In many states, including Hawaii, having property damage liability coverage is a legal requirement to drive legally and responsibly.

Other areas such as damages to the insured’s own vehicle, medical expenses for the insured, or legal fees for defending against lawsuits are covered by different types of insurance provisions and are not classified under property damage liability. This specificity is essential for understanding auto insurance policies and the responsibilities of a driver when involved in an accident.