No one likes to be involved in an accident – even if you have no injury, you have to deal with the other party’s injuries or the shock entirely. For this reason, insurers offer a policy which can be included to your auto insurance at your request. One of such policies is the Property Damage Liability.

Most people understand how this policy operates but few truly have an in-depth understanding of what it entails. While the name may signify property damage, it does not in any way cover any damage to your car. If this is this case, how does the policy affect you? Let’s assume you were at fault in an accident and you damaged the other person’s car. Usually it is advised to get the insurance information of the person and all whatnots. What this part of the policy actually does is to evaluate the cost of repair or replacement of the other car.

After an accident, the last thing anybody would want to bother with is repairs of another person’s car – especially if your car is damaged too. so this policy has a maximum limit of damage repair it can undertake. This is usually included as the last figure of a BIL policy. You have to discuss with your insurer beforehand to know exactly what this maximum repair limit actually is.