What's the Right Amount of Property Damage Liability? 

Automobile property damage liability coverage is required in by most states and for good reason: If you’re found at fault in a car accident, you’re likely on the hook to pay for the damage you cause—not only to the other vehicle(s) you hit but also houses, streetlights, telephone poles, and other types of property.

That’s a huge financial responsibility.

Your auto policy’s Property Damage (PD) Liability Coverage pays toward the money you would owe if there is a successful claim, lawsuit, or settlement against you based on accidental damage you or someone on your policy does to another's vehicle or property.

What does it cover?

Your coverage applies to damage to certain types of property, and for some accident-related service charges:

• Other vehicles, as well as bicycles
• Personal property in the vehicles that you hit
• Structures, such as houses, stores, fences, and sheds you damage
• Municipal property, such as stoplights, streetlights, and telephone poles that you damage Your policy would pay to the limit of coverage.

The goal is to have enough coverage so that you don’t have to take money out of your savings or assets to pay for the damage.

How much property damage liability coverage do I need? Each state requires drivers to have a minimum amount of PD coverage. But a lot of states set such low minimums—with some as little as $5,000, like California —that you could be on the hook for a lot of money if you damage someone else’s property and are found at fault.

Consider $100,000 of Protection

As a general rule, we suggest drivers consider keeping at least $100,000 worth of property damage liability coverage on their policy. This sample list of amounts you could be liable for if you damage/destroy any or all of them:

• $48,681 – the average cost of new vehicle
• $100,000 – the cost to replace an electrical transmission pole
• $25,000 or much more – if you crash into the wall of store, someone’s house, etc.

You Need a Risk Coach™

A 2022 survey found that 96% of survey respondents misunderstood at least one important feature of their auto coverage. More than half misunderstood several. We want better than that for our clients. When you work with our Risk Coaches, you’ll work with a licensed insurance professional who’ll help you get the right coverage at the best price.

Call or Use Chat to Contact a Risk Coach

Use the chat feature on this page, or call us  800.342.5342, Monday through Friday, from 8:00 a.m. to 8:00 p.m. ET, for a no-cost, no-obligation-to-buy, coverage assessment and quote.

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