Property Damage Liability Insurance
What Does Property Damage Liability Insurance Mean?
Property damage liability insurance is a standard component of car insurance that covers damages caused by an insured driver to another person’s vehicle or property. However, it does not cover repairs to the at-fault driver’s own vehicle, which falls under a separate part of car insurance known as collision coverage.
Insuranceopedia Explains Property Damage Liability Insurance
Every state mandates that drivers carry property damage liability coverage, but the minimum required amount varies by state. For example, California requires a minimum of $5,000 in coverage, while Texas requires $25,000.
It is advisable for drivers to purchase more than the minimum coverage. In the event of an accident, if the damages exceed the limits of their property damage liability insurance, the driver will be responsible for paying the additional costs out of pocket.
