What is property damage liability?

Property damage liability coverage is part of a car insurance policy. It helps pay to repair damage you cause to another person's vehicle or property.

Property damage liability coverage is required by law in most states. It typically helps cover the cost of repairs if you are at fault for a car accident that damages another vehicle or property such as a fence or building front.

Property damage liability coverage usually does not cover damage to your own vehicle. You may want to consider other coverages, such as collision coverage, to help cover the cost to repair your own vehicle.

Every state requires a driver to carry a specified minimum limit of liability coverage. States generally require property damage liability coverage and bodily injury liability coverage.

The mandatory coverage limits differ from state to state. For example, in California, drivers are required to have at least $5,000 of property damage liability coverage. In Texas, the minimum amount for property damage liability coverage is $25,000. In Nevada, it's $10,000.

A limit is the maximum amount your policy will pay for a covered claim. You can choose your liability coverage limits when you buy car insurance or adjust them later with the help of your insurance provider.