What does "property damage liability" insurance cover?

"Property damage liability" insurance covers damages to another person's property caused by the insured's vehicle. This type of insurance is crucial in protecting the insured from having to pay out-of-pocket for repairs or replacement of someone else's property, such as a car, fence, or building, that has been damaged in an accident for which the insured is at fault.

This coverage helps ensure that individuals can fulfill their financial obligations if they cause an accident that results in damage to others' property, which not only protects the insured's financial interests but also supports the principle of liability in insurance, where the party at fault bears the responsibility for the harms done to others.

In contrast, the other options reflect different types of coverage. Coverage for damages to the insured's own vehicle pertains to collision or comprehensive insurance. Medical expenses for injuries from an accident relate to personal injury protection or medical payments coverage, while legal fees associated with car accidents usually fall under liability coverage or a separate legal defense policy, rather than specifically property damage liability.