A lot of people carry the state minimum limit of $10,000 for property damage on their auto insurance policies. Although carrying these limits may seem to be helpful to your financial situation now, a lot of people find that it ends up costing them much, much more in the long run. $10,000 is not a lot of money when you are talking about the cost of a car accident. If you are in an at fault car accident, your property damage has to cover all of the damage you do to everyone else’s property. This includes their car, buildings, road signs, etc. This is also sometimes required to pay for the services of the workers who have to come clean up the accident. This is a true story about myself: I never thought I would be in an accident and defiantly never thought I would be in an at-fault accident, but I was. It was raining and I could have sworn the light was still green but apparently it had turned while I wasn’t looking. I hit another vehicle and a light pole. Neither of us was going over 45, but his car was totaled. He was driving a fairly inexpensive rental vehicle but its actual cash value was still over $13,000. The light pole I hit was over $4,000. I had to pay for some of the county road workers that came to clean up the accident, $2,000. The costs add up so quickly it could make your head spin, I know mine did. Luckily, I carried a $25,000 property damage limit. But just think if I had not. I’m not sure where I would have come up with the over $9,000 difference if I only had $10,000 of coverage. So, just something to keep in mind.
