Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Melanie Musson is the fourth generation in her family to work in the insurance industry. She grew up with insurance talk as part of her everyday conversation and has studied to gain an in-depth knowledge of state-specific car insurance laws and dynamics as well as a broad understanding of how insurance fits into every person’s life, from budgets to coverage levels. She also specializes in automa...

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Reviewed by Melanie Musson
Published Insurance Expert

UPDATED: Mar 26, 2021

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Just What's Essential

  • Property damage liability insurance is part of your liability coverage
  • Your vehicle is not covered by property damage liability car insurance
  • Uninsured/underinsured motorist coverage have property damage liability attached to it

Liability insurance includes property damage liability insurance in its coverage body. Property damage liability car insurance, in some cases, is one-half of the minimum car insurance requirement in your state.

Whether you’re looking for a young driver or high-risk car insurance, property damage liability insurance is included somewhere in your insurance policy.

Read through our guide to learn how property damage liability insurance works, how much it costs, and why it’s required.

Every car insurance company should have property damage liability insurance. Compare the best companies using our free comparison tool above to secure cheap car insurance.

What is property damage liability car insurance?

Property damage liability insurance is part of the minimum car insurance requirements that pays for damage when a driver is at-fault in an accident.

Every state has a property damage liability limit and law that financially and legally protects people from negligent parties.

What does property damage liability insurance cover?

As the name suggests, property damage liability insurance covers property damage of another driver’s vehicle or other property damaged when you’re at fault in a car accident.

What doesn’t property damage liability insurance cover?

Property damage liability insurance won’t cover damage to your car when you’re at fault, and it won’t cover bodily injury.

The best way to cover the cost of your vehicle after an accident is through collision insurance.

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How does property damage liability car insurance work?

If you get into an accident and it’s determined that you caused it, your property damage liability insurance pays for the damage to the no-fault driver’s car.

Property damage liability insurance can protect you from being sued and cuts out-of-pocket costs.

When you’re the no-fault driver, the at-fault driver’s property damage liability compensates you for damage to your vehicle.

How much does property damage liability car insurance cost?

You won’t find stand-alone property damage liability insurance rates. Liability car insurance isn’t sold in parts.

Bodily injury, property damage, and other insurance coverages can be bundled together into liability coverage. The overall cost depends on the state where you live.

According to the National Association of Insurance Commissioners (NAIC), liability insurance’s average cost is $48 per month.

But how much does it cost by the state? Let’s see.

American Family vs. Liberty Mutual Average Monthly Rates by Age
Age GroupAmerican Family Average Monthly RatesLiberty Mutual Average Monthly Rates
16-19 Years Old$317.50$546.58
20-29 Years Old$140.42$223.83
30-39 Years Old$140.42$161.83
40-49 Years Old$90.75$160.50
50-59 Years Old$90.75$149.42
60-69 Years Old$82.17$145.50
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These are average rates, so your liability rates will vary based on factors that impact your car insurance rates

The most expensive states for liability insurance are Louisiana, Florida, and New Jersey.

How much property damage liability insurance should you carry?

If you want to save money, you can carry the minimum coverage option. Your minimum requirements vary by state, but here are some common coverage amounts for property damage liability:

  • $5,000
  • $25,000 (most common property damage liability limit)
  • $50,000 (medium coverage level)
  • $100,000 (medium-high coverage level)
  • $300,000+

The recommended property damage limit is the $50,000 coverage limit. Most vehicles are worth less than $50,000, and it has a chance to cover a total loss vehicle.

To be sure about property damage liability, ask for the $100,000 coverage amount.

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

At-fault drivers won’t need to file a claim, but no fault drivers do. After an accident, a police offer will give you an accident.

For example, a South Carolina law enforcement officer will issue an FR-10 form that establishes fault.

Both drivers will have their insurance companies listed on police reports. The no-fault driver should file a claim to the at-fault party’s car insurance provider.

When you call the other driver’s insurance company, have the police report and photos of the damage ready. The claims agent will walk you through the steps you need to take to get your car repaired.

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

Property damage liability insurance is an essential car insurance coverage. It’s not the type of coverage you can take off your policy. Don’t worry – you can still find affordable car insurance.

When you get a car insurance quote, you should see the property damage liability coverage limits listed along with the total cost of insurance.

Before you buy property damage liability insurance, enter your ZIP code in the free comparison tool below to compare multiple companies with affordable property damage liability insurance quotes.