Property Damage Liability: What It Is and How It Works

Property damage liability insurance pays for property you damage if you cause a car accident.
Ben Moore
By Ben Moore  
Edited by Lacie Glover  

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Nerdy takeaways

  • Property damage liability definition: Auto insurance coverage that pays for damage to another person’s property if you’re at fault in an accident.

  • Most states require a minimum amount of property damage liability coverage.

  • Buying more than your state’s requirements offers more financial protection.

Property damage liability insurance pays for the damage you cause to someone else’s property in a car accident. The insurance covers damage to other cars, buildings and structures, like fences and telephone poles. It can also cover legal fees if you’re sued for the same types of damage.

However, property damage liability won’t cover injuries you cause in a crash. It also won’t pay for damage to your car, so you’ll need comprehensive and collision coverage on your policy for repair costs.

🤓Nerdy Tip

Looking to cover your own expenses after a crash? Read our guide on types of car insurance coverage to find out what you need.

Here’s how this coverage works and how much you need.

What property damage liability covers

Property damage liability insurance pays for damage to someone else’s property after a car accident you, or someone driving your car with permission, cause. It pays for:

  • The other person’s car, including paying for any diminished, or reduced, value to the car as a result of the crash.

  • Buildings and other structures, like lampposts and fences, including government property.

  • Damaged trees.

It also may cover legal expenses if you’re sued and the cost of a rental car for the other driver if theirs is being repaired.

How property damage liability works

Property damage liability insurance typically has a “per accident” limit and no deductible. This means the coverage pays out up to the amount stated in your policy after an accident you cause. If you cause another accident, the coverage will, again, pay out up to that policy limit.

If you damage someone else’s property while driving, provide your insurance information to the property owner. They can contact your insurance company to start the claims process. Your insurer will work with the other party to assess the damage and pay for repairs, up to your policy’s property damage liability limits. You will likely see your rates increase because of the claim at your next policy renewal.

🤓Nerdy Tip

Property damage liability is one part of a policy’s total liability insurance. This is usually represented in three numbers, like “25/50/10.” The first two numbers represent how much bodily injury coverage you have per person and per accident, respectively, while the third is the policy’s property damage liability limit.

As an example, say you accidentally rear-end a car at a red light and cause $4,500 in damage. If your property damage liability limit is $10,000, your insurer will cover the entire cost because it’s less than your limit.

Here’s another example: You’re leaving a friend’s home and start your car, which is parked in their driveway. You accidentally put the car into drive instead of reverse and ram through their garage door, causing $10,500 in damage to their garage and car parked inside. Your auto insurance includes $10,000 in property damage liability coverage. Your insurer pays for the garage and car to be fixed, and you’re left on the hook for the remaining $500.

» MORE: Liability Insurance Definition

How much property damage liability you need

Most states, with the exception of Virginia and some areas in Alaska, require drivers to have a minimum amount of property damage liability coverage. But state-mandated car insurance minimums may not be enough to fully cover all property damage you might cause. Also, drivers with a high net worth could be held responsible for amounts much higher than state-mandated minimums.

Ideally, you’d buy enough property damage liability coverage that you don’t need to pay out of pocket if you cause an accident. The average cost of damage from a crash in which there is only property damage is $4,700, according to the most recent data from the National Safety Council. But damage can far exceed that amount in a major crash, especially if you crash into a newer, expensive vehicle, like a sports or luxury car.

State

Requirements

Alabama

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident

Alaska

(Car insurance is optional for certain remote residents) $50,000 bodily injury liability per person $100,000 bodily injury liability per accident $25,000 property damage liability per accident

Arizona

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $15,000 property damage liability per accident

Arkansas

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident

California

$15,000 bodily injury liability per person $30,000 bodily injury liability per accident $5,000 property damage liability per accident

Colorado

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $15,000 property damage liability per accident

Connecticut

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident

Delaware

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $10,000 property damage liability per accident $15,000 personal injury protection per person $30,000 personal injury protection per accident

Florida

$10,000 property damage liability per accident $10,000 personal injury protection

Georgia

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident

Hawaii

$20,000 bodily injury liability per person $40,000 bodily injury liability per accident $10,000 property damage liability per accident $10,000 personal injury protection

Idaho

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $15,000 property damage liability per accident

Illinois

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $20,000 property damage liability per accident $25,000 uninsured motorist coverage per person $50,000 uninsured motorist coverage per accident

Indiana

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident

Iowa

$20,000 bodily injury liability per person $40,000 bodily injury liability per accident $15,000 property damage liability per accident

Kansas

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident Personal injury protection including $4,500 in medical expenses, up to $900 per month for a year for disability or loss of income, $25 per day for in-home services, $2,000 for funeral burial or cremation costs, and $4,500 for rehabilitation Survivors benefits including up to $900 per month for a year for disability or loss of income and $25 per day for in-home services

Kentucky

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident

Louisiana

$15,000 bodily injury liability per person $30,000 bodily injury liability per accident $25,000 property damage liability per accident

Maine

$50,000 bodily injury liability per person $100,000 bodily injury liability per accident $25,000 property damage liability per accident $50,000 uninsured/underinsured motorist coverage per person $100,000 uninsured/underinsured motorist coverage per accident $2,000 medical payments coverage

Maryland

$30,000 bodily injury liability per person $60,000 bodily injury liability per accident $15,000 property damage liability per accident $30,000 uninsured/underinsured motorist coverage per person $60,000 uninsured/underinsured motorist coverage per accident $15,000 uninsured/underinsured property damage coverage per accident

Massachusetts

$20,000 bodily injury liability per person $40,000 bodily injury liability per accident $5,000 property damage liability per accident $20,000 uninsured motorist coverage per person $40,000 uninsured motorist coverage per accident $8,000 personal injury protection

Michigan

$50,000 bodily injury liability per person $100,000 bodily injury liability per accident $10,000 property damage liability per accident outside Michigan $1 million property protection within Michigan $250,000* personal injury protection

*Lower PIP limits available for certain Medicare and Medicaid recipients.

Minnesota

$30,000 bodily injury liability per person $60,000 bodily injury liability per accident $10,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident $40,000 personal injury protection

Mississippi

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident

Missouri

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured motorist coverage per person $50,000 uninsured motorist coverage per accident

Montana

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $20,000 property damage liability per accident

Nebraska

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident

Nevada

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $20,000 property damage liability per accident

New Hampshire

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident $25,000 uninsured/underinsured motorist property damage coverage $1,000 medical payments coverage

New Jersey

$5,000 property damage liability per accident $15,000 personal injury protection

New Mexico

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $10,000 property damage liability per accident

New York

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $50,000 liability for death per person $100,000 liability for death per accident $10,000 property damage liability per accident $25,000 uninsured motorist bodily injury coverage per person $50,000 uninsured motorist bodily injury coverage per accident $50,000 personal injury protection

North Carolina

$30,000 bodily injury liability per person $60,000 bodily injury liability per accident $25,000 property damage liability per accident $30,000 uninsured motorist coverage per person $60,000 uninsured motorist coverage per accident $25,000 uninsured motorist property damage coverage per accident

North Dakota

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident $30,000 personal injury protection

Ohio

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident

Oklahoma

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident

Oregon

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $20,000 property damage liability per accident $25,000 uninsured motorist coverage per person $50,000 uninsured motorist coverage per accident $15,000 personal injury protection

Pennsylvania

$15,000 bodily injury liability per person $30,000 bodily injury liability per accident $5,000 property damage liability per accident $5,000 medical benefits

Rhode Island

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident

South Carolina

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured motorist coverage per person $50,000 uninsured motorist coverage per accident $25,000 uninsured motorist property damage coverage

South Dakota

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident

Tennessee

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $15,000 property damage liability per accident

Texas

$30,000 bodily injury liability per person $60,000 bodily injury liability per accident $25,000 property damage liability per accident

Utah

$25,000 bodily injury liability per person $65,000 bodily injury liability per accident $15,000 property damage liability per accident $3,000 personal injury protection

Vermont

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $10,000 property damage liability per accident $50,000 uninsured/underinsured motorist coverage per person $100,000 uninsured/underinsured motorist coverage per accident $10,000 uninsured/underinsured motorist property damage coverage per accident

Virginia

(Minimum limits if a driver purchases car insurance, which is optional. Drivers who don’t purchase insurance pay a $500 fee.) $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $20,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident $20,000 uninsured/underinsured motorist property damage coverage per accident

Washington

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $10,000 property damage liability per accident

Washington, D.C.

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $10,000 property damage liability per accident $25,000 uninsured motorist coverage per person $50,000 uninsured motorist coverage per accident $5,000 uninsured motorist property damage coverage per accident

West Virginia

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured motorist coverage per person $50,000 uninsured motorist coverage per accident $25,000 uninsured motorist property damage coverage

Wisconsin

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $10,000 property damage liability per accident $25,000 uninsured motorist coverage per person $50,000 uninsured motorist coverage per accident

Wyoming

$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $20,000 property damage liability per accident

» MORE: Compare auto insurance rates

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