The property damage liability coverage is a part of your car insurance policy that helps pay for the costs to repair any damages you cause. This includes being at fault in an accident and has damaged another person’s vehicle or building front, such as their fence. However, this does not cover repairing your vehicle because it typically only covers repairs on other people’s cars and anything else they may be responsible for hurting. Now let’s discuss the minimum amount of insurance for property damage. 

How Much Property Damage Liability You Required To Have?

Every state has its own set of rules for minimum property damage liability coverage. In California, drivers need to have at least $5,000 in PDRL insurance, and Nevada requires a base limit of only $10k. Texas also sets the bar high with a requirement of at least 25 grand, all while other states take it easy on us by setting the mandatory amount much lower or even offering no specific requirements whatsoever!

A limit is a max amount your policy will pay for a covered claim. You can set it to whatever you need when you buy car insurance or change them later with the help of an agent. 

Consider Your Property Damage Liability Limits

Your coverage limit is limited to the amount of your state’s minimum, but you may be able to choose higher limits. For example, if you have a $10k policy and cause an accident that exceeds this value ($11K), then it will cost you more than just the ten thousand dollars out-of-pocket for damages. But with a 15k liability insurance plan, there would only need to be one other person involved in order for them not to owe anything at all!

The higher you set your coverage limits, the more expensive it will be. As you consider how high to set your limits, talk with an insurance agent in your area about what they recommend.


What is the legal minimum insurance cover?

The minimum insurance required by law is the third-party cover. This covers your liability to others who are involved in a collision but no damage done to your vehicle. Basic third-party insurance won’t even handle theft and fire damage!

Is there a deductible for property damage liability?

Deductibles are generally applied to property damage, not the liability portion of homeowners or auto insurance policies.

What are examples of property damage?

Property damage is an injury to either real property or personal property. Property owners can obtain insurance, such as a policy from the United States that protects against this risk to protect their interests and investments.

What is covered by property insurance?

Perils covered by property insurance typically include select weather-related afflictions, including damage caused by fire, smoke, wind, hail, and more. Property insurance also protects against vandalism and theft – covering the structure of your home as well as its contents from breakage or loss during a robbery.

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Imelda Bouchard is the owner of Gov Relations. She graduated with a degree in Business Administration in Finance​ at the University of Houston-Downtown. Imelda has over a decade of experience working in the finance industry. Following her stint at an international fintech company, she has decided to create a platform where businesses can make use of great business ideas.