StateCover Guide
Glossary

Property damage liability

By Editorial team, last reviewed

Quick answer

Property damage liability is the part of your liability coverage that pays for damage you cause to someone else's property in a car accident. Usually that is the other driver's car, but it also covers things like fences, lamp posts and buildings your car hits.

How it works

  • Who it protects. Other people. It does not pay to fix your own car; that is what collision coverage does.
  • Who is covered. The Insurance Information Institute notes that it applies to damage caused by you or by someone driving your car with your permission.
  • Limit. It pays up to your property damage limit, the third number in split limits. In Texas's minimum, written 30/60/25, that is the last figure.
  • Above the limit. If the damage costs more than your limit, the owner can seek the difference from you.

The Texas Department of Insurance warns that minimum limits may be too low if the other driver's car is totaled or several vehicles are involved.

Example: your property damage limit is $50,000 and you cause a crash that totals a $45,000 pickup and damages a $12,000 fence. The total is $57,000, so the policy pays $50,000 and the remaining $7,000 could be claimed from you.

States that require liability insurance set a minimum property damage limit, and you can buy more. Check your state's minimum and your own limit on the declarations page.

Sources

Last reviewed by the StateCover Guide editorial team. See our editorial policy. Spotted an error? Tell us.