Property Damage Liability: What It Covers
Property Damage Liability pays for damage you cause to other people's vehicles and property when you're at fault in an accident.
Get My Point-Reduction Insurance QuoteWhat Is Property Damage Liability Insurance?
Property Damage Liability pays to repair or replace other people's vehicles and property when you cause an accident. Every state except New Hampshire requires this coverage before you can legally drive. The coverage kicks in only when you are at fault.
Who Needs Property Damage Liability Insurance?
Property Damage Liability is legally required in 49 states, so most drivers carry it by mandate. Drivers with multiple traffic violations should carry limits well above the state minimum—if you cause an accident and the damage exceeds your policy limit, you owe the difference out of pocket. Drivers who lease or finance a vehicle must carry this coverage as part of their lender's insurance requirement.
If your driving record includes multiple violations and you caused or nearly caused accidents recently, higher limits protect you from personal liability judgments.
How Much Does Property Damage Liability Insurance Cost?
- At-fault accidents in the past three to five years raise your Property Damage Liability premium because you have demonstrated higher claim risk.
- Multiple moving violations on your record increase your premium—carriers view traffic violations as accident predictors.
- Your ZIP code affects cost—high-density urban areas with more accident frequency cost more than rural counties.
- Young drivers under 25 pay higher rates because crash data shows higher property damage claim frequency for this age group.
- Bundling Property Damage Liability with higher Bodily Injury Liability limits often triggers a multi-policy discount.
