Your policy may contain a variety of car insurance coverage options. If you cause an accident that damages someone’s property, your property damage liability insurance will cover the costs up to the limits of your policy.
Property damage responsibility includes damage to other cars, buildings, and structures such as fences and telephone poles. However, property damage liability does not cover injuries caused in a crash. It also does not cover vehicle damage; you must have comprehensive and collision coverage on your policy to cover these costs.
Here’s how property damage liability coverage works and how much you need.
What property damage liability covers
Property damage liability insurance covers damage to someone else’s property as a result of a car accident you caused. It also protects against damage caused by someone else driving your car with permission. More specifically, property damage responsibility covers damage to:
- The other person’s car, including the cost of any diminished or reduced value caused by the accident.
- Buildings and other structures, such as lamp posts and fences, include government property.
- Trees and other landscaping.
Property damage liability may also cover legal fees if you are sued.
How property damage liability works
Property damage liability insurance often includes a “per accident” maximum and no deductible. This means that the coverage pays out after you cause an accident, but only up to the amount specified in your policy. If you cause another accident, your coverage will pay out up to the policy limit.
If you cause damage to another person’s property while driving, notify the property owner with your insurance information. They can contact your insurance company to begin the claims procedure. Your insurer will collaborate with the other party to analyze the damage and pay for repairs, subject to your policy’s property damage liability limits. Because of the claim, your premiums will most likely rise at the next policy renewal.
Let’s imagine your car insurance coverage has a $10,000 property damage liability limit. While driving, you rear-end another car at a red light, causing $4,500 in damage to the other driver’s vehicle. Because the total is less than your policy’s property damage liability limit, your insurer will cover the entire cost of repairs.
However, if the collision caused $10,500 in damage to another person’s automobile and property, your insurer will only pay up to your policy’s property damage liability limit. For this example, your insurance would cover $10,000 of the repair costs, leaving you to pay the remaining $500.
How much property damage liability you need
With the exception of Virginia and some portions of Alaska, most states mandate all drivers to have at least some property damage liability coverage. Liability-only auto insurance is the cheapest choice for drivers, but it is also the very minimum need to drive lawfully.
| 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 Or a policy with a single limit of $60,000 |
| 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 Or a combined single liability limit of $125,000 |
| 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 $25,000 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.)
$30,000 bodily injury liability per person $60,000 bodily injury liability per accident $20,000 property damage liability per accident $30,000 uninsured/underinsured motorist coverage per person $60,000 uninsured/underinsured motorist coverage per accident $20,000 uninsured/underinsured motorist 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 |
Unfortunately, the state-mandated auto insurance minimums may not be sufficient to cover all property damage you may do. Drivers with a high net worth may suffer significant financial losses if they are judged liable for damages that exceed their liability insurance limits.
Ideally, your insurance should include adequate property damage liability coverage so that you do not have to pay out of pocket if you cause an accident. According to the most recent National Safety Council data, the average cost of damage from a crash resulting in solely property damage is $5,700 per car. However, in a significant incident, the damage might far exceed that value, particularly if you collide with a newer, more expensive vehicle, such as a sports or luxury car.
