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What is property damage liability insurance?

Property damage liability is the part of liability car insurance coverage that pays for property damage to another party when you're at fault in an accident.

Did you know property damage liability insurance covers all property? Property damage liability car insurance pays for damage to a vehicle or other property in an accident you caused.

But does property damage insurance cover your vehicle’s damages?

Read through this article to learn how property damage liability auto insurance works, how you can secure cheap property damage liability insurance rates, and what companies are best for property damage liability.

Are you ready to shop for property damage liability insurance? Enter your ZIP code in the free comparison tool above to compare multiple companies in your area. For more information, continue reading to see how property damage liability works for you.

How does property damage liability car insurance work?

Property damage liability auto insurance is one of the main parts of liability coverage. States that require car insurance require some form of property damage liability.

Your property damage liability insurance covers damage to property after you’ve been found at fault in an accident. A property damage liability claim doesn’t limit itself to motor vehicles. Here’s a list of things that can be covered by property damage liability coverage.

  • Damage to homes
  • Property damage to offices
  • Accidental damage to stores
  • Damage to trees
  • Coverage for damage to lamp posts

Any damage that you caused while you were driving is covered by property damage liability.

If you need excess property damage liability coverage, think about investing in personal umbrella insurance. Personal umbrella insurance covers the cost of property damage when your property damage liability limits run out.

What doesn’t property damage liability car insurance cover?

Property damage liability insurance is at-fault insurance coverage. In other words, property damage liability won’t cover your property damage expenses. If you want coverage for your vehicle, buy collision car insurance. Collision auto insurance covers damage to your vehicle regardless of fault.

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What are the required property damage liability limits for car insurance?

Property damage liability is required. However, the coverage limits vary. Let’s look at the required property damage liability limits for each state.

Property Damage Liability Coverage Limits by State

StatesRequired Property Damage Liability Insurance Limits
Alabama$25,000
Alaska$25,000
Arizona$25,000
Arkansas$25,000
California$5,000
Colorado$15,000
Connecticut$20,000
Delaware$10,000
Washington, D.C.$10,000
Florida$10,000
Georgia$25,000
Hawaii$10,000
Idaho$15,000
Illinois$20,000
Indiana$25,000
Iowa$15,000
Kansas$25,000
Kentucky$25,000
Louisiana$25,000
Maine$25,000
Maryland$15,000
Massachusetts$5,000
Michigan$10,000
Minnesota$10,000
Mississippi$25,000
Missouri$25,000
Montana$20,000
Nebraska$25,000
Nevada$20,000
New Hampshire$25,000
New Jersey$5,000
New Mexico$10,000
New York$10,000
North Carolina$25,000
North Dakota$25,000
Ohio$25,000
Oklahoma$25,000
Oregon$20,000
Pennsylvania$5,000
Rhode Island$25,000
South Carolina$25,000
South Dakota$25,000
Tennessee$15,000
Texas$25,000
Utah$15,000
Vermont$10,000
Virginia$20,000
Washington$10,000
West$25,000
Wisconsin$10,000
Wyoming$20,000 
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California, Massachusetts, New Jersey, and Pennsylvania have the lowest property damage liability limit. It’s recommended that you buy a higher property damage limit to avoid paying out-of-pocket costs.

How much are property damage liability insurance rates?

The cost of property damage liability varies for each person. Several factors determine whether affordable property damage liability insurance is available to you.

Before you buy property damage liability insurance, you’ll get to see how much you’ll pay per month. Your property damage liability insurance quotes break down how much each coverage costs.

A property damage liability insurance company is technically an auto insurance company that provides liability coverage.

According to the National Association of Insurance Commissioners (NAIC), the average cost of liability insurance is $46 a month. Your exact quote from a property damage liability insurance company will vary.

The best car insurance companies provide discounts that lower your liability car insurance rates close to the NAIC average. However, car insurance rates are determined by personal factors.

Which car insurance companies provide the best property damage liability insurance?

If you want to shop with the best companies that provide property damage liability insurance, start with the top companies. Here’s a list of the leading companies in the auto insurance industry.

  • Allstate
  • GEICO
  • American Family
  • USAA
  • State Farm
  • Progressive
  • Travelers
  • Liberty Mutual
  • Nationwide
  • Farmers

Property damage insurance is a requirement. Therefore, the best companies will carry property damage liability insurance. To get a good deal on liability coverage, you’ll need to qualify for discounts.

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How do you file a property damage liability car insurance claim?

First, you should contact law enforcement and get a police report. Next, you can file a property damage liability claim by calling the at-fault driver’s car insurance company and explaining that a policyholder damaged your property.

Before the auto insurance company pays anything, you’ll have to provide a copy of a police report, pictures of the damage, and personal information.

Get at least two estimates (you may need three) and present them to the car insurance company. Auto insurance companies often go with the lowest estimate.

Property Damage Liability Insurance: What’s the bottom line?

Property damage liability is an essential car insurance coverage. Most states require property damage liability insurance, except for New Hampshire, which does not require residents to have auto insurance. However, if you do have auto insurance in New Hampshire, property damage liability must be included in the policy.

Ultimately, you get property damage coverage for a low price when you shop with the right company.

Now that you know more about property damage liability insurance, use our free comparison tool below to compare multiple companies near you.

References:

  1. https://www.naic.org/prod_serv_alpha_listing.htm

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