What Is Property Damage Liability Coverage?
Property damage liability coverage is a type of auto insurance that helps pay for damage you cause to someone else’s property in a car accident. This can include damage to another person’s vehicle, a fence, a mailbox, a building, or any other property you might hit while driving. It is an essential part of your auto insurance policy because, without it, you could be personally responsible for covering these costs out of pocket.
In Texas, drivers are required by law to carry a minimum amount of liability coverage. The standard minimum policy you’ll often see is 30/60/25. This means $30,000 for bodily injury per person, $60,000 for total bodily injury per accident, and $25,000 specifically for property damage. The $25,000 property damage portion is what covers repairs or replacement for any property you damage in a collision. While this is the legal minimum, it’s often not enough if you cause significant damage, so many drivers opt for higher limits to protect themselves financially.
Property damage liability coverage does not cover your own vehicle. That is a separate coverage called collision insurance. Instead, property damage liability protects you from being sued or having to pay large sums if you damage someone else’s property. Without this coverage, even a minor accident could leave you facing significant financial liability.
Insurance adjusters use this coverage to determine how much your insurance will pay after an accident. If the damage exceeds your policy limits, you could be responsible for paying the remainder. This is another reason many Texans choose to purchase higher limits than the $25,000 minimum to avoid personal financial exposure.
