Your Property Damage Liability coverage is what someone would make a claim against if you damaged their vehicle by hitting it with your car.

Most states require basic Liability coverages of Bodily Injury Liability and Property Damage Liability so if you are at-fault in an accident the party whom you damaged can make a claim against your policy and be compensated.

Property damage liability covers you if your car damages someone else's property. Usually it is their car, but it could be a fence, a house or any other property damaged in an accident. It also provides you with legal defense if another party files a lawsuit against you.

Bodily Injury covers other people's bodily injuries or death for which you are responsible. It also provides for a legal defense if another party in the accident files a lawsuit against you. Claims for bodily injury may be for such things as medical bills, loss of income or pain and suffering. In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets.

For the damages to your own vehicle you would make a claim against your own Collision coverage. Collision coverages typically cover damages to your car when your car hits, or is hit by, another vehicle, or other object. This coverage pays to fix your vehicle less the deductible you choose at the inception on your policy.