Property damage coverage (for when you cause damage to someone else's property) Property damage coverage is mandatory in this state. (Conditional Based on State) In a nutshell Let's say you hit another car. Or you skid into someone else's fence. Or house. Whatever it is, if you cause damage to someone else's property (including their car) while driving, you're on the hook for fixing it. That's where property damage coverage comes in. It'll cover the cost of repairing someone else's stuff, up to the limit you choose. Whose property is covered? In most cases, anyone whose property you're responsible for damaging. This coverage kicks in if you're at fault for damaging someone else's property. Which includes their car, home, or anything else they own. Keep in mind, if you're in an accident with another driver, property damage only covers the other driver's car or property if you're at fault. Your collision coverage is there for your car. When choosing your limit Think about this. These days, vehicles are turning into four-wheeled computers. And those can be expensive to fix. Like $20,000 to $30,000 expensive in some cases. And as more manufacturers integrate technology into every square inch of their vehicles, the cost of replacing a bumper or a side-view mirror will likely continue to rise. Of course every repair won't cost a fortune. But some will. And that's worth considering when choosing your property damage limits. Does it matter who's at fault? Yes. Property damage covers you when you're at fault for damaging someone's car or property.