Property Damage Liability Insurance

Definition - What does Property Damage Liability Insurance mean?

Property damage liability insurance is a part of typical car insurance that pays for damages that an insured driver causes to other people's vehicles or property. Property damage liability won't pay for repairs to the at-fault driver's vehicle. This is another part of car insurance known as collision coverage.

Insuranceopedia explains Property Damage Liability Insurance

Every state requires that drivers have property damage liability coverage. Each state has its own minimum requirement for property damage liability coverage. For example, in California it's only $5,000 while in Texas it's $25,000.

It's a good idea for drivers to purchase more than the minimum amount of coverage. Drivers who get into an accident and cause more damage than is covered by their property damage liability insurance will need to pay for the extra damages out of pocket.

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