Glossary

Property damage liability

The part of liability coverage that pays for damage you cause to other people's cars and property, such as fences, buildings and poles.

Also called: PD liability, PDL, property damage coverage

Property damage liability pays for damage you cause to someone else's property in a crash you are responsible for. That includes the other driver's car and things like fences, mailboxes, storefronts, guardrails and utility poles. It can also pay for the other party's loss of use, such as a rental car while their vehicle is repaired. It does not fix your own car; that is collision coverage.

It is the third number in a split liability limit: in 50/100/50, the last 50 means $50,000 per accident for all property damage. Nearly every state sets a minimum, commonly between $10,000 and $25,000; California's rose from $5,000 to $15,000 on January 1, 2025. Example: you run a red light, total a new SUV worth $48,000 and knock down a traffic signal that costs $12,000 to replace. With a $25,000 property damage limit, your insurer pays $25,000, and you could be sued for the remaining $35,000 (hypothetical figures).

Many minimums were set when cars cost far less. A single late-model vehicle, a multi-car crash or damage to public property can exceed $25,000 quickly, so many drivers choose $50,000 or $100,000, and raising this limit usually adds relatively little to the premium. See liability car insurance explained and bodily injury liability.

Last reviewed October 4, 2026

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Related terms

Liability coverage The part of a car insurance policy that pays for injuries and property damage you cause to others, plus your legal defense, up to your limits. Bodily injury liability The part of auto liability insurance that pays for injuries or deaths you cause to other people in a crash, plus your legal defense. Liability limits The most a liability policy will pay for injuries and property damage you cause, usually written as three numbers such as 100/300/100. Minimum coverage The least car insurance a state lets you carry to drive legally, usually liability coverage at set limits and sometimes PIP or uninsured motorist coverage. Collision coverage Pays to repair or replace your own car after it hits another vehicle or object, or rolls over, regardless of fault, minus your deductible. Loss of use Compensation for not being able to use your car while it is repaired or replaced after a crash someone else caused, usually paid as a rental car.

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Related tools

Liability limits decoder Type limits like 50/100/25 to see what each number means and test them against a crash you cause — including how much would be left for you to pay.