A lot of the times, our first concern with auto insurance might be the cost or even how an accident might affect our vehicle if we end up in an accident with extraordinary damage. Yet, what many of us do not think about are the ways that other vehicles and property damage could affect our monthly payment plans. A lot of times, we skip third party or property damage insurance coverage in order to be a little more financially stable in our month to month budgets, when it might cost us later. Therefore, it is important to understand all of the options and scenarios in which third policy insurance might be helpful.

Property damage is the damage which is incurred to other vehicles but can also include damages made to other people's house or property; potential damage lies within poles, guardrails, fences and trees. If you have a basic liability plan, should you get into an automobile accident, most insurance companies only compensate the other party for up to 5,000 dollars of the incurred damages. A property damage policy covers an amount of damage that the policy holder makes to another person's property and is covered by the policy holder's insurance company. Under most state's laws, a basic coverage is required when operating a motor vehicle. Inevitably a higher deductable means that your month to month insurance bill will be more costly but will give you more protection on the road should you hit another driver. Since every insurance company has different rates and policies, one source suggests shopping around before deciding to purchase or skipping a property damage coverage policy.

Also, if another person hits your car and is without any existing property damage insurance or has an amount that will not compensate the necessary damages of your property, it is important to understand how your insurance company will view the prospective accident in this scenario. In New Jersey, they state that car insurance companies will view the accident from the point of view of the automobile who hit your vehicle. Therefore, they will compensate your property damage to the extent that the other vehicle was liable; if you live in New Jersey, under the New Jersey's comparative negligence law, they may only fund you for your damages if the other driver is more negligent than your part in the accident.

Sometimes it is possible for damage claims to be filed with the other vehicle's insurance company; this usually is a preventative measure that is used to help you avoid paying a deductable before the damage to the automotive has been assessed. Sometimes, companies will even provide you with a temporary vehicle to drive while your car is being repaired; it is important to talk to the insurance company to see if a rental car is a viable option under their insurance policy.

If you have collision and comprehensive insurance, it is more likely to be beneficial to file the claim under your own insurance policy. Sometimes, your insurance policy holder will also file damages under the other insurance company holder; if you are not considered at fault for the damaged property you may receive compensation for your deductibles. If you are unsure as to the extent of damages that have been incurred and have some specific questions that are pertinent to your claim and insurance policy company, it may be important to call a representative as soon as you can. If you feel that you are entitled to a larger monetary sum and are not receiving the proper amount via your insurance company, you might also consider speaking with a skilled car accident attorney.