In general, Florida property damage insurance pays for the other person’s car or another person’s property (like if you run into a fence), when YOU are AT FAULT in an accident. It pays for accidents when you are in your car, or someone is driving your car with permission. This is generally indemnity coverage which means that they will pay a judgment, up to your policy limits, as well as the cost of defense (Generally an unlimited amount of defense costs, but you generally must use their lawyers). If the insurance company feels there is merit to the other person’s claim against you, they likely may pay the cost of the repairs to the other car and/or have the other driver sign a release in exchange for a sum of money. Florida law required owners of cars in Florida to carry Personal Injury Protection (PIP) coverage up to $10,000 and Property Damage insurance of a minimum amount of $10,000. While the other driver who caused an accident must have property damage insurance to fix your car, interestingly he is not generally required by Florida law to carry bodily injury insurance which pays the injured person money if that driver caused the accident.