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The scope of property damage coverage varies by policy but generally includes physical harm to tangible assets. For instance, if a driver accidentally hits a mailbox or breaks a window at a store parking lot, property damage coverage would help pay for repairs or replacement costs up to the policy limits. This protection is particularly important because property owners may hold drivers legally responsible for damages regardless of fault in the accident. By ensuring adequate property damage coverage, drivers can avoid significant out-of-pocket expenses that could arise from such incidents.

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