Property damage liability pays for damage to other people’s cars and property when you cause a crash. It’s required in almost all states as part of standard liability insurance.
Jerry has helped 240,241 drivers get the right amount of property damage liability coverage and we encourage drivers to consider higher limits than the state minimum to protect your finances in case of an accident.
Jerry pulls up to 20 quotes from top rated carriers.
What property damage liability does and doesn’t cover
| Covered | Not covered |
|---|---|
| Other people’s car repairs. | Your car repairs. |
| Other people’s damaged buildings or structures. | Your property damage. |
| Other people’s fences, mailboxes and landscaping. | Damage costs over your policy limits. |
| Rental car costs for the other driver. | Your rental car expenses. |
| Legal defense if you’re sued. | Medical bills or injuries. |
Jerry recommends: Don’t skip property damage liability insurance—it’s often illegal to drive without it. Plus, you’d have to pay out of pocket for any damage you cause in a crash. Get covered quickly by comparing quotes with property damage liability in the Jerry app.
How property damage liability works
Property damage liability has a single limit and is commonly expressed as the third number in a liability policy, such as 25/50/25.
That third number (25) represents the policy’s per-accident limit, which is the maximum amount that will be paid for property damage you cause in a crash — in this case, $25,000. The first two numbers in the liability limits (15/30) are for bodily injury liability.
Key takeaway: Property damage liability has no deductible. Your insurance pays covered property damage costs up to your limit, and you’re responsible for anything beyond that amount.
Learn more: How car insurance works in at-fault states
How much property damage liability you need
All states have established drivers to have a minimum amount of property damage liability insurance, but those minimums are often too low to pay for vehicle repairs or replacement after a severe crash.
Why it matters: The average property damage claim is $6,551, according to III. But if you hit a luxury car, costs could easily exceed $50,000. You could face massive out-of-pocket costs unless you raise your PD limits above state minimums.
Learn more: How much car insurance do I need?
Jerry recommends: Choose limits high enough to cover hitting an expensive car or causing multiple-car damage. Jerry recommends that you consider property damage limits of at least $100,000 to protect your finances in case of an accident.
How much it costs for higher property damage liability limits
Here’s what Jerry users have paid over the last six months for the most common state minimum limit ($25,000) versus higher property damage liability limits.
| Coverage level | Monthly cost |
| $25,000 PD | $93 – $238 |
| $100,000 PD | $127 – $297 |
| Difference | +$34 – $59 |
Based on drivers with no accidents or violations who saved with Jerry over the past 6 months. Quotes and coverage not available for all customers.
For as little as $34 more per month, you get protection that’s 4x times higher than most state minimums.
Why it matters: Even if you think you won’t cause major damage, consider that luxury cars are increasingly common. A single accident with a Tesla Model S or BMW 7 Series could exceed $75,000 in repairs.
Compare policies with property damage liability with Jerry
When shopping for car insurance, it’s important to compare property damage limits to find the right balance of protection and cost.
Jerry quickly shows you up to 20 quotes from top rated carriers so you can see how different limits affect your premium.
Factors that affect your property damage liability costs
Several factors influence your property damage liability rates:
🚙 Driving record: At-fault accidents and violations increase costs.
📍Location: Areas with expensive vehicles typically cost more.
💰Coverage limits: Higher limits cost more but provide better protection.
🕰️ Insurance history: Continuous coverage helps keep rates lower.
💳 Credit score: Lower credit scores mean higher car insurance costs.
What to know about property damage claims
Property damage activates whenever you’re at fault and damage property, including:
💥 Rear-ending another car and damaging their bumper.
🏠 Losing control and hitting someone’s garage.
🚙 Causing a chain reaction crash with multiple cars.
⚠️ Any accident where you’re at fault and property is damaged.
The coverage also pays for legal defense if someone sues you for additional compensation.
It only takes 2 minutes to sign up at Jerry.
FAQ
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🚗 Will property damage liability cover your own vehicle?
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💸 Does property damage insurance coverage have a deductible?
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🏥 Is property damage the same as collision coverage?
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🛡️How much property damage liability do I need?
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⚠️ What happens if my PD limits aren’t enough?
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☂️ Do I need umbrella insurance with high PD limits?
Methodology
Data included in this analysis comes from policies that Jerry has quoted within the last 6 months for drivers with a clean record and that have full coverage, unless stated otherwise. Data related to violations, accidents or credit scores pull from quote data from the last 18 months. Jerry services 48 states and offers a range of insurance companies to choose from.
Ben Moore is a writer and editor at Jerry and an auto insurance expert. He previously worked as a writer, editor and content strategist on NerdWallet’s auto insurance team for five years. His work has been published in The Associated Press, Washington Post, Chicago Sun-Times, MarketWatch, Nasdaq and Yahoo News. He also served as a NerdWallet spokesperson, with appearances on local broadcast television and quotes in Martha Stewart and Real Simple magazine.
Ben has an extensive background in digital marketing, working on affiliate and programmatic advertising campaigns for brands like Cabela’s, H&R Block and Sears. He holds a bachelors degree in marketing from Olivet Nazarene University.
