Car Insurance Coverage that Protects 3rd Parties – Generally Referred To As The Liability Coverages.
Property Damage (PD) Liability: Florida law requires a minimum of $10,000 in PD coverage. PD covers you if your vehicle damages someone else’s property – (i.e. not your own property…this coverage will not even cover the car you were driving when the accident actually occurred). This will cover the other party’s car, possessions (i.e. valuables that were damaged in the car), or even non-vehicular property (for example, if you accidentally run into someone else’s mailbox). Property damage insurance is important because if you are found liable (caused) an accident, the other party may try to sue you in order to recover the expenses they incurred repairing or replacing their property. In addition, most insurance companies will pay for an attorney to defend you against any such lawsuit.
Read about Bodily Injury (BI) Liabilty Insurance Coverage.