Practice question

How much is property damage liability coverage?

  1. $30,000
  2. $12
  3. $15,000
  4. $10,000

Answer: D — $10,000

Property damage liability coverage is typically designed to cover the costs associated with damages you cause to someone else's property in an accident. The correct amount recognized for minimum coverage in many states, including Arizona, is often set around $10,000. This means that if you are found responsible for an accident, your insurance would cover up to $10,000 for the damages inflicted on another party's property. The other amounts listed, while they may appear as reasonable figures, do not align with the minimum coverage requirements generally stipulated by state laws for property damage liability. Therefore, the most accurate choice reflecting the standard minimum coverage is $10,000.

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