Property Damage Liability Coverage

Property damage liability coverage is a basic auto insurance option that helps you if you’re at fault in an accident. This coverage is the minimum auto insurance required in most states. How much property damage car insurance you need varies by state, but property damage liability coverage per accident limits are commonly 25/50/25.

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Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Cynthia Lanctot is an insurance professional with ten years of industry experience. Cynthia is licensed in several states, and holds an associate in claims law, as well as a bachelor’s degree in English. Cynthia’s experience includes the New England and Northeast states. She currently works as a liability claims professional and an occasional online contributor.

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Reviewed by Cynthia Lanctot
Licensed Agent

UPDATED: Aug 31, 2021

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A Concise Overview

  • Property damage liability is part of most auto policies and can be sold as standalone insurance
  • This type of coverage helps you pay for damages to another’s car or property
  • Property damage liability coverage is required in most states

If you drive a car, you’re more than likely in need of property damage liability coverage — or maybe you already have it and don’t understand why. Driver’s may find that property damage liability car insurance is beneficial in the event of an accident they’ve caused.

This guide will help you better understand property damage liability insurance costs and learn about auto insurance coverages available in your area. While most states require property damage liability coverage as baseline insurance, it’s a fundamental part of most car insurance packages.

If you are ready to compare local property damage liability insurance rates, use our free tool. Enter your ZIP code below to get fast, free liability insurance quotes.

What is property damage liability auto insurance?

Property damage liability coverage pays for the damage you or someone driving your car may cause to another’s property. Generally, this insurance covers vehicles. However, this property damage liability can be used to cover damage to any structure you hit with your car.

Other uses for property damage coverage:

  • Fixing damages to a house or business
  • Legal fees
  • Loss in income
  • Recurring expenses from the damages

Since this coverage doesn’t cover damages to your vehicle/property, drivers don’t file claims against their policy. Instead, your insurance company will work with the other policy on a claim against you.

Keep reading to learn more about how to buy property damage liability insurance that fits your needs.

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How much are property damage liability insurance rates?

Property damage liability insurance costs are lower than some policy types: While it is a basic policy, it still needs to be strong enough to cover the damages of another’s property so you don’t have to.

Below is a table to compare liability insurance rates to more extensive policies:

Average U.S. Auto Insurance Rates by Coverage Type
Coverage TypeAverage Annual
Auto Insurance Rates
Average Monthly
Auto Insurance Rates
Comprehensive$148$12
Collision$326$27
Liability$555$46
Full$1,029$86
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Do you need liability car insurance? In most cases, yes. Bodily injury and property damage liability insurance rates and limits vary by state.

What are property damage liability coverage limits?

In most states, property damage liability and bodily injury coverage are often lumped together in the general term “liability.” Bodily injury liability insurance helps to cover medical costs if the other driver is hurt.

How much property damage auto insurance do I need? State liability car insurance limits come in various percentages, though drivers can purchase higher limits than what is required.

The most common liability limit is 25/50/25, which means $25,000 for bodily injury coverage, $50,000 for bodily injury, and $25,000 worth of property damage coverage per accident.

Check out the table below to see what liability coverage is required in your state and how much you are required to purchase in order to be a legal driver:

Liability Auto Insurance Requirements by State
StateInsurance required Minimum liability limits
AlabamaBI & PD Liab25/50/25
AlaskaBI & PD Liab50/100/25
ArizonaBI & PD Liab15/30/10
ArkansasBI & PD Liab, PIP25/50/25
CaliforniaBI & PD Liab15/30/5
ColoradoBI & PD Liab25/50/15
ConnecticutBI & PD Liab, UM, UIM25/50/20
DelawareBI & PD Liab, PIP25/50/10
District of ColumbiaBI & PD Liab, UM25/50/10
FloridaPD Liab, PIP10/20/10
GeorgiaBI & PD Liab25/50/25
HawaiiBI & PD Liab, PIP20/40/10
IdahoBI & PD Liab25/50/15
IllinoisBI & PD Liab, UM, UIM25/50/20
IndianaBI & PD Liab25/50/25
IowaBI & PD Liab20/40/15
KansasBI & PD Liab, PIP25/50/25
KentuckyBI & PD Liab, PIP, UM, UIM25/50/25
LouisianaBI & PD Liab15/30/25
MaineBI & PD Liab, UM, UIM, Medpay50/100/25
MarylandBI & PD Liab, PIP, UM, UIM30/60/15
MassachusettsBI & PD Liab, PIP20/40/5
MichiganBI & PD Liab, PIP20/40/10
MinnesotaBI & PD Liab, PIP, UM, UIM30/60/10
MississippiBI & PD Liab25/50/25
MissouriBI & PD Liab, UM25/50/25
MontanaBI & PD Liab25/50/20
NebraskaBI & PD Liab, UM, UIM25/50/25
NevadaBI & PD Liab25/50/20
New HampshireFR only25/50/25
New JerseyBI & PD Liab, PIP, UM, UIM15/30/5
New MexicoBI & PD Liab25/50/10
New YorkBI & PD Liab, PIP, UM, UIM25/50/10
North CarolinaBI & PD Liab, UM, UIM30/60/25
North DakotaBI & PD Liab, PIP, UM, UIM25/50/25
OhioBI & PD Liab25/50/25
OklahomaBI & PD Liab25/50/25
OregonBI & PD Liab, PIP, UM, UIM25/50/20
PennsylvaniaBI & PD Liab, PIP15/30/5
Rhode IslandBI & PD Liab25/50/25
South CarolinaBI & PD Liab, UM, UIM25/50/25
South DakotaBI & PD Liab, UM, UIM25/50/25
TennesseeBI & PD Liab25/50/15
TexasBI & PD Liab, PIP30/60/25
UtahBI & PD Liab, PIP25/65/15
VermontBI & PD Liab, UM, UIM25/50/10
VirginiaBI & PD Liab, UM, UIM25/50/20
WashingtonBI & PD Liab25/50/10
West VirginiaBI & PD Liab, UM, UIM25/50/25
WisconsinBI & PD Liab, UM, Medpay25/50/10
WyomingBI & PD Liab25/50/20
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Another way to interpret the table above is to break it down by how much the insurance company will cover. Below is a list of average payouts that each state may apply to a property damage liability coverage insurance company:

Average Payouts for Property Damage Liability Coverage by State
StateAverage Payout
Alabama$25,000
Alaska$25,000
Arizona$25,000
Arkansas$25,000
California$5,000
Colorado$15,000
Connecticut$20,000
Delaware$10,000
District of Columbia$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$5,000
Michigan$10,000
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
New Mexico$10,000
New York$10,000
North Carolina$25,000
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$15,000
Texas$25,000
Utah$15,000
Vermont$10,000
Virginia$20,000
Washington$10,000
West Virginia$25,000
Wisconsin$10,000
Wyoming$20,000
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For example, let’s say you have a $10,000 limit and cause property damage that exceeds insurance coverage. Instead of having to pay out of pocket to cover what insurance doesn’t, you can save yourself the hassle and purchase a higher limit ahead of time.

Should I buy property damage liability coverage?

In case you’re involved in an at-fault car accident, property damage liability coverage only serves the other driver. This type of insurance is more affordable than comprehensive auto insurance policies with far less coverage.

In most states, property damage liability and bodily injury auto insurance policies are required in order to drive a car legally.

Use our free tool to compare auto insurance companies near you. Enter your ZIP code for affordable property damage liability coverage quotes.

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