Required liability insurance has two parts:
bodily
injury (BI) and property damage (PD) usually combined
together into one policy.
The property damage (PD) section of a liability policy covers
damages to the other driver's car, personal property in that
car and damage to other property such as to a fence or home
or damage to the property of a pedestrian. Other expenses
such as towing, storage, and the cost of a rental car may
also be covered.
The dollar amount that the car
insurance company will pay is usually calculated by that
insurer's adjuster who then negotiates with the injured party
for a final settlement.
Typically the minimum amount required for this policy is
less than that required for bodily injury (BI) and is usually
listed as the last of the three numbers for a total combined
liability policy, such as:50/100/25
In this example the last number refers to a property damage
(PD) limit of $25,000 for each accident. The first two numbers
refer to the bodily injury (BI) coverage. |
