What Is Property Damage Liability?
Imagine this: You’re driving through your neighborhood and accidentally hit a parked car. The damage looks expensive. Who’s going to pay for it?
If you have property damage liability insurance, your policy does.
🧠 Key Takeaways
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✅ Property damage liability (PDL) pays for damages you cause to someone else’s property
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✅ Required in nearly all U.S. states
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✅ Does not cover damage to your own vehicle
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✅ State minimums range from $5,000 to $25,000
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✅ Higher coverage limits provide more financial protection
What Is Property Damage Liability?
Property damage liability is a type of car insurance that covers costs when you damage someone else’s property in an accident — whether it’s a car, a fence, or even a storefront.
🔹 What it covers:
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Another person’s vehicle
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Private property (e.g., fences, mailboxes)
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Public property (e.g., light poles, city signs)
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Commercial buildings
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Legal and court fees if you’re sued over property damage
🔹 What it doesn’t cover:
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Damage to your own car
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Medical expenses (yours or theirs)
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Damage caused intentionally
PDL vs. Personal Liability Insurance
While property damage liability covers incidents on the road, personal liability (in homeowners or renters policies) handles off‑road accidents—like someone tripping in your driveway. Don’t confuse your auto policy’s PDL limits with the personal umbrella you carry for home or rental liability.
How to Read Your Policy Limits
Your declarations page lists liability as a “50/100/25” stack:
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50 = $50,000 bodily injury per person
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100 = $100,000 bodily injury per accident
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25 = $25,000 property damage liability per accident
The last figure is your PDL limit—this is what you have available for each at‑fault crash.
Minimum Coverage Requirements by State
Here’s what’s required across a few key states:
| State | Minimum Coverage |
|---|---|
| California | $5,000 |
| Florida | $10,000 |
| Texas | $25,000 |
| New York | $10,000 |
| Virginia | $20,000 |
Coverage Requirements for Other Vehicle Types:
Most states apply the same or higher minimums for motorcycles, RVs, boats, and commercial vehicles—check your DMV or insurer for specifics.
For a full 50‑state minimum breakdown, see our interactive guide here.
How Much Property Damage Liability Do You Need?
The legal minimum isn’t always enough. With more electric and luxury vehicles on the road, repair costs are rising.
🔧 Suggested Coverage Levels:
| Coverage Tier | Amount | Who It’s For |
|---|---|---|
| Basic | $10,000 | State‑minimum drivers |
| Recommended | $50,000 | Most drivers |
| Premium | $100,000+ | High-asset individuals or businesses |
Premium Factors Affecting Your Rate
Your PDL premium isn’t determined by limits alone. Insurers also look at:
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Driving record and accident history
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Age and gender
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Credit score
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Vehicle make/model (luxury cars cost more)
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ZIP code (urban areas tend to be pricier)
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Bundling discounts (multi‑policy savings)
Property Damage Liability vs. Collision Coverage
| Feature | Property Damage Liability | Collision Coverage |
|---|---|---|
| Covers your car | ❌ | ✅ |
| Covers someone else’s property | ✅ | ❌ |
| Required by law | ✅ | ❌ |
| Pays if you’re at fault | ✅ | ✅ |
Tip: Combine both for full protection.
Real‑World Examples
Example 1:
You accidentally rear-end a new SUV. The damage totals $42,000.
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✅ With $50,000 PDL → All damages paid
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❌ With $10,000 PDL → You’d owe $32,000 out of pocket
Additional Scenarios:
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Backing into a mailbox ($1,200)
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Hitting a fence at home ($3,500)
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Damaging a storefront window ($8,800)
| State | Avg. Monthly Cost |
|---|---|
| Alabama | $6.50 |
| Alaska | $7.00 |
| Arizona | $5.90 |
| Arkansas | $6.20 |
| California | $5.80 |
| Colorado | $6.10 |
| Connecticut | $7.30 |
| Delaware | $6.70 |
| Florida | $9.50 |
| Georgia | $7.25 |
| Hawaii | $5.20 |
| Idaho | $5.00 |
| Illinois | $6.80 |
| Indiana | $6.00 |
| Iowa | $5.40 |
| Kansas | $5.60 |
| Kentucky | $6.90 |
| Louisiana | $8.00 |
| Maine | $5.10 |
| Maryland | $7.40 |
| Massachusetts | $6.50 |
| Michigan | $9.80 |
| Minnesota | $5.70 |
| Mississippi | $6.20 |
| Missouri | $6.30 |
| Montana | $5.50 |
| Nebraska | $5.30 |
| Nevada | $8.50 |
| New Hampshire | $4.80 |
| New Jersey | $7.90 |
| New Mexico | $6.60 |
| New York | $10.00 |
| North Carolina | $6.80 |
| North Dakota | $5.20 |
| Ohio | $6.30 |
| Oklahoma | $6.10 |
| Oregon | $5.90 |
| Pennsylvania | $6.70 |
| Rhode Island | $6.90 |
| South Carolina | $6.40 |
| South Dakota | $5.40 |
| Tennessee | $6.50 |
| Texas | $7.25 |
| Utah | $5.60 |
| Vermont | $5.30 |
| Virginia | $7.80 |
| Washington | $6.90 |
| West Virginia | $5.60 |
| Wisconsin | $5.70 |
| Wyoming | $5.20 |
Prices vary based on your profile and vehicle.
Impact of Filing a Claim
Filing an at‑fault PDL claim can:
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Raise your premiums upon renewal
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Trigger a deductible where applicable
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Affect your claims history and eligibility for discounts
Consider whether it’s worth claiming for minor damages.
FAQs: Quick Answers
What is property damage liability insurance?
Insurance that covers damages you cause to other people’s property during an accident.
Is it required in every state?
Almost—New Hampshire is the exception. Most states require PDL to legally drive.
Does it cover your car?
No. That’s what collision insurance is for.
Can it cover hitting a building or city property?
Yes. Street signs, buildings, and lampposts are included.
Legal Consequences of Being Underinsured
If your PDL coverage is too low and you cause major damage, you’re personally liable for the remaining costs. This can result in:
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Wage garnishment
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Asset seizure
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Lawsuits
Avoid this by upgrading your policy beyond the minimum.
Secure Your Coverage with Hotaling Insurance Services
Don’t wait until it’s too late—ensure you have the right Property Damage Liability protection in place. Here’s how to get started with Hotaling:
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Request Your Personalized Quote
Call our Melville office at (516) 344‑6900 for side‑by‑side comparisons of PDL limits, deductibles, and legal‑fee coverage from leading carriers. -
Use Our Coverage Estimator
Head to our website’s free estimator tool, enter your vehicle, assets, and state, and receive a tailored PDL recommendation in seconds. -
Book a Declarations Page Review
Schedule a one‑on‑one consultation with a Hotaling advisor to confirm your “50/100/25” (or higher) liability stack and explore policy endorsements that add extra legal protection. -
Bundle & Save
Combine your auto policy with home or renters insurance through Hotaling to unlock discounts up to 25%, plus loyalty perks that grow over time. -
Set Your Annual Check‑In
We’ll remind you each year to revisit your limits—factoring in new assets, repair‑cost inflation, and evolving state requirements—so you never face an unexpected gap.
Ready to protect your assets and peace of mind?
📞 (516) 344‑6900
🌐 Request Your Custom Quote Online
Partner with Hotaling today—and drive confidently into tomorrow.
Conclusion: Don’t Gamble With Low Coverage
Property damage liability insurance is more than a legal checkbox—it’s financial protection against high repair costs. While state minimums keep you on the road, they may not shield you from out‑of‑pocket liability. Review your policy, understand your limits, and take these next steps to ensure you and your assets are fully protected.