What is property damage liability? Bankrate Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Advertiser Disclosure
Advertiser Disclosure
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: Halfpoint/Getty Images August 30, 2021 Elizabeth Rivelli is a contributing insurance writer for Bankrate and has years of experience writing for insurance domains such as The Simple Dollar, Coverage.com and NextAdvisor, among others Amy Sims is a managing editor for Bankrate, leading a team responsible for creating educational insurance content. Bankrate logo The Bankrate promise
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation of how we make money. Our content is backed by LLC, a licensed entity (NPN: 19966249). For more information, please see our Insurance Disclosure. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — so you can feel confident about which provider is right for you. We guide you throughout your search and help you understand your coverage options. We provide up-to-date, reliable market information to help you make confident decisions. We reduce industry jargon so you get the clearest form of information possible. All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure we’re putting accuracy first. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Bankrate logo Insurance Disclosure
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. All states require some form of liability insurance or proof of financial responsibility to drive on the road legally. Property damage liability insurance pays for damage you cause to another person’s property when you are at fault in an accident. While purchasing car insurance or renewing your current policy, it is important to understand what is and is not covered under property damage liability and how much coverage you should carry on your auto policy. Compare rates and save on auto insurance today! Get quotes Close X RatesRates keep going up in 2022. Compare rates and save on auto insurance today! Get quotes Close X This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare auto insurance rates
Answer a few questions to see personalized rates from top carriers. Save on auto insurance with quotes from trusted providers like: Drivers switch & save an average of $750+/year Arrow Right Are you overpaying for auto insurance? Arrow Right Safe drivers choose Allstate Arrow Right Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. See more providers in Choose from insurers in Show More RATE INCREASE ALERT Rates increased up to 12% this year
Shop for a better rate before you renew your current policy. This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare auto insurance rates
Answer a few questions to see personalized rates from top carriers. Save on auto insurance with quotes from trusted providers like: Drivers switch & save an average of $750+/year Arrow Right Are you overpaying for auto insurance? Arrow Right Safe drivers choose Allstate Arrow Right Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. See more providers in Choose from insurers in Show More How does property damage liability work
With liability insurance coverage on an auto policy, part of that coverage pays for property damage to others. If you cause an accident and damage someone else’s property, your insurance company will pay on your behalf up to the limit listed on your insurance policy’s . Most states offer split coverage limits, while others also offer combined single limit liability insurance policies. With split limits, there is a limit per person and per accident that the insurance will pay. For example, a split limit policy listed as 100/300/50 means you have liability coverage up to: $100,000 per person for bodily injury liability $300,000 per accident for bodily injury liability $50,000 per accident for property damage liability In this example, the most the auto insurer would pay is $50,000 for property damage you cause in an accident. Any amount owed above your coverage limit would be your responsibility to pay out of pocket. With a combined single limit, you have one amount to help pay for all the liability you are responsible for in an at-fault accident. For example, a combined single limit of $300,000 means you have up to $300,000 the auto insurer will pay for the entire accident, including bodily injury and property damage. What does property damage liability cover
Property damage liability covers another person’s property if you cause damage from an at-fault accident. It covers property, including cars, houses, fences, mailboxes and business storefronts. It also covers public property, like light poles or road signs, that might be damaged in an accident. This coverage type can also cover your legal fees if you are involved in a major property damage claim and have to go to court. If you crash into a business storefront and it has to close for repairs, your may also cover the owner’s lost revenue. Property damage liability coverage does not cover your losses, like vehicle damage or medical bills. It specifically covers other peoples’ property. If your vehicle is damaged in an accident, or if you need medical treatment, your optional , and coverage will help cover the costs. Review your auto policy to understand if these coverages are listed and if they are not, contact your insurance agent if you need them added before an accident occurs. Who needs property damage coverage
Nearly every state requires some form of , which includes property damage liability. For example, Massachusetts drivers are required to carry at least a minimum of $5,000 in property damage liability coverage. Alabama drivers are required to have at least $25,000 in property damage liability coverage. Regardless of how often you drive, you are legally required to carry at least the minimum amount of auto coverage or show proof of financial responsibility in the state where you live. How much does property damage coverage cost
The cost of property damage insurance depends on your car insurance premium. However, certain criteria like your age, state, claims history, credit score (in most states) and the type of car you drive can all impact your rate. Another thing that affects the cost of property damage liability is the amount of coverage you have. How much liability coverage should you get
Drivers must carry at least the minimum amount of property damage liability insurance required in their state. Without the minimum coverage, you can get cited for driving without adequate insurance, which comes with a fine (at a minimum) and usually a requirement to carry an . However, many drivers are encouraged to purchase more than what is required. There is no guarantee that the state’s minimum required coverage limit is enough to cover the full cost of an accident. If you only have $5,000 in coverage and cause $25,000 in property damage, you could be responsible for the $20,000 difference. Ultimately, the amount of coverage you get is a personal choice. If you want the most protection possible, increasing your coverage limit can provide that peace of mind. Just keep in mind that the higher your coverage limit is, the more expensive your insurance premium will be. How do you file a property damage liability claim
Filing a property damage liability claim is similar to any other type of car insurance claim. Although the exact steps will vary based on your insurance company, here are the steps you will need to take if you caused the damage: Find the property owner: After the incident occurs, find the property owner and get their contact information. If they are not around, leave a note with your name, phone number, insurance company and policy number. Document the damage: When it is safe, document any property damage at the scene of the accident with photos and videos. Contact your auto insurer: Contact your insurance company and notify them of the incident. You’ll be asked to provide some paperwork and provide photo and video evidence of the damage. Your claims adjuster will work with the other party to determine the repair cost and fix the damage you caused. You should also check with your provider to see if it has any additional requirements. Frequently asked questions
Is property damage liability coverage required
Yes, property damage liability insurance is required in almost every state. It is automatically included as part of your liability coverage, if you drop the coverage, you can face higher when you get reinsured. Driving without the minimum required amount of coverage in your state is illegal and comes with consequences. What factors determine the size of a claim
The main factor that determines the size of a claim is the cost of the repairs. A claim that costs $200 is considered a small claim, whereas a $10,000 claim is much larger. More extensive claims are also more likely to impact your car insurance rate when your policy renews. What s the highest coverage limit for property damage liability insurance
Every insurance company has different maximum limits for property damage liability insurance. However, most providers offer coverage limits as high as $100,000. Some auto insurers may offer limits beyond $100,000 per accident. What are other coverage types required for car insurance
In addition to property damage liability coverage, most states require drivers to carry , with minimum coverage limits per person and per accident. Additionally, some drivers are required to carry uninsured and underinsured motorist coverage and personal injury protection (PIP). SHARE: Elizabeth Rivelli is a contributing insurance writer for Bankrate and has years of experience writing for insurance domains such as The Simple Dollar, Coverage.com and NextAdvisor, among others Amy Sims is a managing editor for Bankrate, leading a team responsible for creating educational insurance content. Related Articles