What Is Property Damage Liability Insurance?

What do you understand by Property Damage Liability Insurance? Let’s get down to the details immediately.

A deer darts across the road as you drive home from work. You hop the curb and smash through the neighbor’s fence as you swerve to avoid it. Who will be responsible for the repair?

If you’re insured, the expense is covered by your insurance company, minus your deductible. This is where property damage liability insurance comes in—it covers you if you cause damage to someone else’s property. Liability coverage is the most basic type of auto insurance, and it is required in all states except New Hampshire.

How Does Property Damage Liability Insurance Work?

Property damage liability insurance is normally only a small part of your overall car insurance coverage. The following coverage types are commonly seen in car insurance policies:

  • Bodily Injury Liability: Bodily injury liability coverage helps pay for medical bills and missed wages if you or a covered family member injures someone else. 
  • Medical Payments or Personal Injury Protection (PIP): If you or a passenger is harmed in an accident, medical payments coverage, often known as PIP, will cover your medical bills, missed income, and even burial expenses.
  • Collision: After an accident, collision insurance covers the cost of repairs or replacement for the policyholder’s car.
  • Comprehensive: Theft and weather damage are covered under comprehensive coverage, which reimburses policyholders for their losses.
  • Uninsured/Underinsured Motorist Coverage: Uninsured/underinsured motorist coverage pays for automobile repairs and other expenditures if you’re in an accident with someone who doesn’t have insurance or doesn’t have enough insurance to cover your damages.
  • Property Damage Liability: When you are at fault in an accident, property damage liability insurance covers repairs to another person’s car or property, such as a fence or building. It will also cover the cost of removing debris left behind after an accident, such as a broken tree or signs.

Liability coverage is usually expressed as $50,000/$100,000/$50,000. Your bodily injury coverage is represented by the first number, your bodily injury coverage per event limit is represented by the second number, and your property damage liability component is represented by the third number.

Because property damage liability does not cover repairs to your own vehicle or medical expenses, you’ll need additional coverage, such as collision and comprehensive insurance, to protect yourself.

How Much Property Damage Liability Insurance Is Required? 

How much property damage liability insurance you’re required to have depends on what state you live in. Below are the minimum requirements for each state and Washington, D.C.:

  1. Alabama: $25,000
  2. Alaska: $25,000
  3. Arizona: $10,000
  4. Arkansas: $25,000
  5. California: $5,000
  6. Colorado: $15,000
  7. Connecticut: $20,000
  8. Delaware: $10,000
  9. District of Columbia: $10,000
  10. Florida: $10,000
  11. Georgia: $25,000
  12. Hawaii: $10,000
  13. Idaho: $15,000
  14. Illinois: $20,000
  15. Indiana: $25,000
  16. Iowa: $15,000
  17. Kansas: $25,000
  18. Kentucky: $25,000
  19. Louisiana: $25,000
  20. Maine: $25,000
  21. Maryland: $15,000
  22. Massachusetts: $5,000
  23. Michigan: $10,000
  24. Minnesota: $10,000
  25. Mississippi: $25,000
  26. Missouri: $25,000
  27. Montana: $20,000
  28. Nebraska: $25,000
  29. Nevada: $20,000
  30. New Hampshire: $25,000
  31. New Jersey: $5,000
  32. New Mexico: $10,000
  33. New York: $10,000
  34. North Carolina: $25,000
  35. North Dakota: $25,000
  36. Ohio: $25,000
  37. Oklahoma: $25,000
  38. Oregon: $20,000
  39. Pennsylvania: $5,000
  40. Rhode Island: $25,000
  41. South Carolina: $25,000
  42. South Dakota: $25,000
  43. Tennessee: $15,000
  44. Texas: $25,000
  45. Utah: $15,000
  46. Vermont: $10,000
  47. Virginia: $20,000
  48. Washington: $10,000
  49. West Virginia: $25,000
  50. Wisconsin: $10,000
  51. Wyoming: $20,000  (Source: Insurance Information Institute).

How Much Does Property Damage Liability Coverage Cost?

You’ll need to get coverage from an insurance company because property damage liability coverage is mandated by law in most jurisdictions. The cost of your automobile insurance policy is determined by several factors, including your location, vehicle, driving record, age, gender, insurance alternatives, and coverage quantities.

Liability-only coverage are insufficient for the majority of drivers. According to the Insurance Information Institute, 78 percent of insured drivers add collision coverage to their policies to increase their safety.

Buying Car Insurance

Insurance is required for all vehicles. At the very least, proprietors should get a coverage that meets the state’s minimal liability insurance standards for bodily injury and property damage. Compare quotes from several auto insurance companies to find the best deal.