Technically, all three major components of a full-service auto insurance policy cover property damage. The distinction is within the types of damage-causing events each element specifically pays benefits toward. Comprehensive and collision coverage pay for the damages to your property or vehicle. Liability insurance, which is required in most states, cover's another person's property if you cause an accident.

Coverage Details

With liability auto protection, you buy a certain amount of per-accident and per-vehicle protection. If you are at fault in an accident, the coverage pays for replacement or replacement of the other parties' vehicles, up to your benefit maximum. Collision coverage pays for the replacement or repairs to your vehicle if you are in an accident. Comprehensive coverage pays for replacement or repairs after many non-collision events, such as natural disasters, animal damage, theft or vandalism and falling objects.