what type of car insurance would you need to use if you damaged part of your neighbor's house in a car accident?

You’d typically use your auto liability coverage — specifically the property damage liability part of your car insurance — to pay for damage you cause to your neighbor’s house in a car accident.

How it works in this situation

If you accidentally drive into your neighbor’s house, fence, mailbox, or other structures on their property:

• Your property damage liability coverage is meant to pay for damage you cause to other people’s property , which includes homes, fences, and landscaping, not just vehicles.
• Your neighbor would usually file a claim against your auto policy , or your insurer would work directly with them to cover repair costs, up to your policy limits.
• If the damage is very high and exceeds your liability limits , your neighbor might then need to involve their own homeowners insurance for the remainder, and you could potentially be personally responsible for anything above all policy limits.

Quick example

You misjudge a turn, jump the curb, and take out part of your neighbor’s brick wall and front porch. Your property damage liability on your auto policy is the coverage that responds to that house damage, while your collision coverage (if you carry it) would be what covers the repairs to your own car. So, to directly answer the question:

The type of car insurance you’d use is your auto property damage liability coverage.