What Is Property Damage Liability Coverage?
Last Updated on December 29, 2025
Property damage liability (PDL) is the part of your auto insurance that helps pay for repairs when you damage someone else’s car or property in an at-fault accident.
Because car insurance is mandatory in nearly every state, most drivers carry some amount of property damage liability—even if they don’t realize it.
In this guide, we’ll explain what property damage liability covers, what it doesn’t cover, how limits work, and how to choose a limit that won’t leave you paying thousands out of pocket.
Key Takeaways
- Property damage liability (PDL) pays to repair or replace someone else’s vehicle or property when you cause an accident.
- PDL is usually a per-accident limit with no deductible, and you can be responsible for costs that exceed your limit.
- State minimum PDL limits can be very low (often $10,000–$25,000), which may not be enough to cover a newer vehicle or a multi-car crash.
- Choosing higher liability limits (often $50,000–$100,000+) can add meaningful protection and may be less expensive than you’d expect.
- What Is Property Damage Liability Coverage?
- How Property Damage Liability Coverage Works
- What Property Damage Liability Covers
- What Property Damage Liability Does Not Cover
- Understanding Property Damage Liability Limits
- Minimum Property Damage Liability Requirements by State
- How Much Property Damage Liability Coverage Should You Have?
- When Should You File a Property Damage Claim?
- What Happens If You Cause More Damage Than Your Policy Limit?
- How to Keep Premiums Down While Carrying Better Liability Limits
- FAQs on Property Damage Liability Coverage
- Final Word on Property Damage Liability Coverage
What Is Property Damage Liability Coverage?
Property damage liability coverage pays for damage you cause to other people’s property while driving, up to your policy’s limit.
It typically applies when you’re responsible for the crash (or legally responsible for someone driving your vehicle with permission).
Property damage liability is usually paired with bodily injury liability, which covers the other person’s medical bills and related injury costs after an at-fault accident.
How Property Damage Liability Coverage Works
After a crash where you’re at fault, property damage liability helps pay to make the other party “whole” again for the damage you cause.
A typical property damage claim looks like this:
- You report the accident to your insurer and share your policy information with the other party.
- Damage is documented (photos, repair estimates, shop supplements, and sometimes an inspection).
- Your insurer negotiates and pays for covered damage to the other party, up to your property damage limit.
- If damage exceeds your limit, the remaining amount may become your responsibility.
Unlike collision or comprehensive coverage, property damage liability coverage usually has no deductible for you to pay on an at-fault property damage claim. (Your insurer pays the other party, up to your limit.)
What Property Damage Liability Covers
Property damage liability coverage is most commonly used to pay for damage to the other driver’s vehicle, but it can also apply to many other types of property.
Common examples of property damage liability coverage include:
- Repairs to the other driver’s car (bumper, doors, sensors, glass, etc.)
- Total loss payouts when the other vehicle is damaged beyond its value
- Damage to buildings, fences, mailboxes, garage doors, and landscaping
- Damage to city/property infrastructure (guardrails, poles, signs, barriers)
- In some claims, related costs like reasonable “loss of use” (for example, a rental car) may be included, depending on state rules and the claim situation
What Property Damage Liability Does Not Cover
Property damage liability coverage is not designed to repair your own vehicle or cover your own injuries.
It generally does not pay for:
- Damage to your car (that’s what collision coverage is for)
- Your injuries or your passengers’ injuries (that’s handled by PIP/MedPay and other coverages, depending on your state and policy)
- Mechanical breakdown, maintenance, or wear and tear
- Intentional damage (intentional acts are typically excluded)
Understanding Property Damage Liability Limits
Property damage liability is usually written as a per-accident limit. That means your insurer will pay up to that amount for all property damage you cause in a single accident.
Liability limits are often shown in a 3-number format, like 50/100/50:
- The first number is bodily injury liability per person.
- The second number is bodily injury liability per accident.
- The third number is property damage liability per accident.
If you carry $25,000 in property damage liability and you total a vehicle worth $45,000, your insurer may pay up to $25,000—then you may be responsible for the remaining $20,000 (and potentially other costs tied to the loss).
If you’re unsure what limits make sense for your situation, this guide can help: what auto insurance limits should I have?
Minimum Property Damage Liability Requirements by State
Every state sets its own minimum required coverage (and those minimums can change). Some states require as little as $5,000 in property damage liability, while others require $50,000 or more.
Below are common minimum property damage liability limits (per accident) by state. For a full breakdown of required coverages beyond property damage, see our state-by-state auto insurance requirements guide.
| State | Minimum Property Damage Liability (Per Accident) |
|---|---|
| Alabama | $25,000 |
| Alaska | $25,000 |
| Arizona | $15,000 |
| Arkansas | $25,000 |
| California | $15,000 |
| Colorado | $15,000 |
| Connecticut | $25,000 |
| Delaware | $10,000 |
| Florida | $10,000 |
| Georgia | $25,000 |
| Hawaii | $10,000 |
| Idaho | $15,000 |
| Illinois | $20,000 |
| Indiana | $25,000 |
| Iowa | $15,000 |
| Kansas | $25,000 |
| Kentucky | $25,000 |
| Louisiana | $25,000 |
| Maine | $25,000 |
| Maryland | $15,000 |
| Massachusetts | $30,000 |
| Michigan | $10,000 (outside Michigan) |
| Minnesota | $10,000 |
| Mississippi | $25,000 |
| Missouri | $25,000 |
| Montana | $20,000 |
| Nebraska | $25,000 |
| Nevada | $20,000 |
| New Hampshire | $25,000 |
| New Jersey | $5,000 (Basic policy) |
| New Mexico | $10,000 |
| New York | $10,000 |
| North Carolina | $50,000 |
| North Dakota | $25,000 |
| Ohio | $25,000 |
| Oklahoma | $25,000 |
| Oregon | $20,000 |
| Pennsylvania | $5,000 |
| Rhode Island | $25,000 |
| South Carolina | $25,000 |
| South Dakota | $25,000 |
| Tennessee | $25,000 |
| Texas | $25,000 |
| Utah | $25,000 |
| Vermont | $10,000 |
| Virginia | $25,000 |
| Washington | $10,000 |
| Washington, D.C. | $10,000 |
| West Virginia | $25,000 |
| Wisconsin | $10,000 |
| Wyoming | $20,000 |
Important notes: Michigan’s system is unique (it also requires separate property protection coverage for certain in-state property damage), and New Jersey’s minimum depends on whether you buy a Basic or Standard policy. Always confirm your exact requirements when you register, renew, or move.
Also, while New Hampshire is known for being less strict than most states, it still has financial responsibility rules and penalties if you cause a crash without being able to pay.
How Much Property Damage Liability Coverage Should You Have?
State minimums are meant to set a legal baseline—not to guarantee you’re financially protected.
When choosing a property damage limit, think about:
- The vehicles you see every day (newer SUVs, EVs, and trucks can be expensive to repair or replace).
- The risk of multi-car accidents (several damaged vehicles can add up fast).
- Your assets and income (higher limits can help reduce the chance you’ll pay out of pocket or face a lawsuit).
- Whether you want extra protection (many drivers pair higher auto liability limits with an umbrella policy).
Many drivers consider $50,000 to $100,000 (or more) in property damage liability a practical starting point, but the “right” number depends on your budget, risk tolerance, and local costs.
When Should You File a Property Damage Claim?
In a minor fender bender, some drivers consider paying out of pocket to avoid a claim. But that can backfire if damages increase after teardown, hidden damage is discovered, or the other driver later claims injury.
In general, it’s smart to involve your insurer when:
- Damage looks expensive (modern bumpers and sensors can be costly).
- Multiple vehicles or property were hit.
- You struck government or commercial property (guardrails, signs, storefronts, etc.).
- You’re unsure who is at fault or there’s a dispute.
If you’re thinking about handling it privately, document everything, get written estimates, and make sure both sides agree in writing. Otherwise, you can end up paying twice—once out of pocket and again through a later claim.
What Happens If You Cause More Damage Than Your Policy Limit?
If the total property damage exceeds your limit, your insurer may pay up to the limit and you may be responsible for the rest. That can lead to collections, a lawsuit, or wage garnishment in some situations.
Liability coverage typically includes legal defense if you’re sued for a covered accident, but you may still want to understand your options if things escalate: do I have to hire a lawyer if I’m sued over an auto accident?
How to Keep Premiums Down While Carrying Better Liability Limits
Increasing liability limits often costs less than people expect—especially compared to how expensive it can be to pay out of pocket after a serious accident.
Ways to manage the cost:
- Compare quotes with the same liability limits (apples to apples).
- Ask about discounts (multi-policy, safe driver, telematics, paperless, pay-in-full, etc.).
- Adjust collision and comprehensive deductibles (this affects your own car coverage, not your liability limits).
- Review your policy at renewal—rates and discounts change over time.
For more ideas, see our guide on top-20 ways to save on auto insurance.
FAQs on Property Damage Liability Coverage
Final Word on Property Damage Liability Coverage
Property damage liability coverage helps pay for damage you cause to other vehicles and property in an at-fault accident. It’s required in most places, but state minimum limits are often too low to protect you in a serious crash.
If you can afford it, choosing higher property damage liability limits can be one of the simplest ways to protect your savings and avoid major out-of-pocket costs.
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