Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Benjamin Carr was a licensed insurance agent in Georgia and has experience in life, health, property and casualty coverage. He has worked with State Farm and other risk management firms. Benji is also a strategic writer and editor with a background in branding, marketing, and quality assurance. He has been in military newsrooms — literally on the frontline of journalism.

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Reviewed by Benji Carr
Former Licensed Life Insurance Agent

UPDATED: Apr 26, 2021

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To Sum It Up

  • Property damage liability pays for damage when you’re at fault in a car accident.
  • Auto insurance companies provide higher property damage liability limits up to $100,000.
  • Personal umbrella insurance will give you additional coverage.
  • Property damage liability will not cover the at-fault driver’s property.

Property damage liability is designed to provide coverage for damages caused by an at-fault driver after a car accident. In liability car insurance, property damage liability is the portion that deals specifically with repairing and recovering the property of another party.

Every army veteran’s auto insurance contains property damage liability. But how much does it cost? Continue reading this article to learn more about property damage liability and how it works.

If you want to compare multiple companies that provide property damage liability, enter your ZIP code in the free comparison tool above to compare property damage liability auto insurance quotes.

What is property damage liability insurance?

Property damage (PD) liability insurance is part of the liability auto insurance, and it’s required as part of the minimum requirements for auto insurance.

Public liability and property damage insurance are standard for commercial businesses to have, also. Although the liability rules are similar, public liability insurance from companies works differently than the general liability car insurance provided for private individuals.

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What does property damage liability insurance cover?

Your PD liability will not cover damage done to your vehicle or other property. Property damage liability covers damage done to the no-fault party’s property, including motor vehicles, homes, and other items damaged by the insured’s negligence.

Legal fees and loss of incomes are also covered by property damage liability.

Each PD liability comes with a coverage limit. A coverage limit is the maximum amount of money your auto insurance company will provide after you’ve been found liable for an accident.

Property Damage Liability Auto Insurance Requirements and Coverage Limits

Speaking of coverage limits, did you know each state in America has different standards for minimum auto insurance requirements? This includes PD liability. Let’s review the PD liability requirements for each state below.

GEICO vs. Liberty Mutual: Average Annual Rates by Age
AgeGEICO Average Annual RatesLiberty Mutual Average Annual Rates
20$1,438$2,686
30$1,218$1,942
40$1,189$1,926
50$1,160$1,793
60$1,065$1,746
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The most common PD liability limit is $25,000, but the lowest PD liability limit is $5,000. Higher PD liability limits are recommended in states that carry a $5,000 PD liability limit.

How much does property damage liability cost?

Property damage liability auto insurance rates are determined by driving record, age, where you live, your auto insurance company, and coverage level.

When you increase your PD liability coverage limits, your auto insurance rates go up, too. Let’s look at how much each coverage level can increase your car insurance cost.

GEICO vs. Nationwide: Average Annual Rates by Age
AgeGEICO Average Annual RatesNationwide Average Annual Rates
20$1,438$1,582
30$1,218$1,582
40$1,189$1,151
50$1,160$1,114
60$1,065$1,028
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The “+” signs indicate how much will be added to your annual auto insurance rates. As you can see from the information in the chart, you’ll pay more per year when you buy higher property damage liability limits.

Take advantage of discounts to get access to cheap property damage liability auto insurance. One of the best discounts is based on your credit score.

According to Experian, your car insurance provider will give you a discount if you have good or excellent credit. Why? A good credit history correlates to a low chance of filling a claim.

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Frequently Asked Questions: Property Damage Liability

Did we cover the auto insurance basics of property damage liability limits? To reassure you that you get everything you need to know, we’re including answers to frequently asked questions.

#1 – How do you file a property damage liability claim?

When you’re not at fault in a car accident, you have to contact the at-fault party’s insurance provider in addition to yours. Once the fault has been established, you will have a claim with the at-fault driver’s company.

A property damage liability claim number will be assigned to you, so you can track the progress of your claim and quickly report any estimates to fix your property.

#2 – What is personal umbrella insurance?

When your liability insurance coverage can’t cover the cost of injuries and damages, personal umbrella insurance will make up the difference by going above and beyond your coverage limits.

#3 – How much property damage liability should I carry?

It’s recommended that you carry medium coverage levels ($50,000 coverage limits) rather than the minimum liability requirements.

#4 – Can property damage liability pay for my vehicle after an accident?

If you’re an at-fault driver, PD liability will not pay for your vehicle’s damage. You’ll need collision auto insurance to get compensation for your damaged car.

#5 – Does property damage liability require a deductible?

Property damage liability does not require a deductible.

Start comparing property damage liability insurance from multiple companies by entering your ZIP code in the free online quote tool.