What is the significance of property damage liability car insurance policy?

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The property damage liability car insurance policy provides cover if the policyholder’s car had damaged the property of another person. Normally, it would the car of that person but it could be the fence, the house, or any other property that could be damaged in an accident. This policy would provide legal protection also if the other person files a lawsuit against the policyholder. The policy limit would depend on the personal assessment of the policyholder about the extent of damage that could be caused to the property of another person. The coverage limit would be the maximum amount that would be paid for each accident. In general, it would be prudent to purchase a liability limit that would be proportionate to the current assets as well as the expected future net worth of the policyholder.