Leif Olson, Car Insurance Writer
@leif_olson_1
Property damage liability insurance covers damage that you cause to another person’s property when you are at fault in a car accident. For example, property damage liability insurance will help pay for damage to other people’s cars, homes, offices, mailboxes, and more.
What Property Damage Liability Insurance Covers
| Damaged Item | Covered? |
| Someone else’s car | Yes |
| Your car | No |
| Someone else’s fence, mailbox, etc. | Yes |
| Homes/office buildings | Yes |
| Injuries | No |
| Medical bills | No |
Your property damage liability insurance is only used when you are at fault. If another driver is at fault and your car or other property is damaged, their liability insurance will help pay for your expenses. However, if you are at fault, the only way to have insurance pay for your repairs is if you have collision coverage on your policy.
Property damage liability insurance is mandatory in most states, but the amount of coverage you are required to have varies from state to state. For example, California requires only $5,000 in coverage, whereas Texas requires $25,000 in coverage.
To learn more, check out WalletHub’s guide to property damage liability insurance.
People also ask
What does liability insurance cover?
Liability insurance covers the other driver’s injuries and property damage in accidents that you cause. Bodily injury liability insurance covers the other driver’s medical expenses, while property damage liability insurance covers their vehicle and other objects damaged in the crash, like their home or fence.
What Liability Car Insurance Covers
- Other people’s medical expenses after accidents caused by the policyholder
- Damage to other people’s property caused by the policyholder
- Legal fees if the policyholder is sued...
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