Property damage liability
The limit most obviously outpaced by what vehicles now cost.
Property damage liability pays for property you damage that belongs to someone else. Usually that's another vehicle, but it also covers structures — a fence, a storefront, a utility pole.
It's the coverage where the gap between common state minimums and real-world costs is easiest to see.
What it covers
- Repair or replacement of another person's vehicle
- Buildings, fences, walls, and landscaping
- Utility poles and public infrastructure
- Other property damaged in an accident you caused
- Loss of use in some circumstances — the rental the other driver needs
The arithmetic problem
Several states set property damage minimums at figures that predate the current cost of vehicles. A minimum in the region of $5,000 to $15,000 does not replace an ordinary modern car, let alone a newer one.
If you total someone's vehicle and your limit falls short, the difference can be pursued from you. That's a straightforward and avoidable exposure.
It isn't only cars
People size this coverage against vehicles and forget the rest. Driving into a building, a set of traffic lights, or a utility installation produces claims that are frequently larger than a car, and the repair bill for public infrastructure is not negotiable.
What it doesn't cover
Your own vehicle. Damage to the car you're driving is collision coverage, regardless of who owned the property you hit.
Common questions
No. Damage to the vehicle you're driving is covered by collision, not by property damage liability.
In several states the minimum wouldn't replace an ordinary new vehicle. Whether it's enough depends on what you could pay out of pocket if it fell short.
Property damage liability generally responds to structures as well as vehicles — and those claims can be considerably larger, which is part of the argument for higher limits.
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This page is general information, not advice about your specific circumstances. A licensed insurance professional can tell you what’s actually available to you.
General information only, not insurance advice. Coverage, availability, and terms vary by insurer and by state, and are subject to underwriting. Quote My Policy LLC is a licensed insurance producer. Nothing here binds coverage.