← All Glossary Terms
Definition
Property Damage Liability is the part of your auto liability coverage that pays for damage the at-fault driver causes to others' property, including vehicles, fences, and buildings. It's the third number in a split limit—for example, in a quote written as 25/50/25, the final figure represents your property damage limit. This coverage is required in most states as part of minimum liability insurance, though the exact required amounts vary by state. It pays for the other party's property, not your own vehicle—that's what collision coverage handles. If you hit someone's car or run into a structure, this coverage responds up to your selected limit. Damage beyond your limit typically becomes your out-of-pocket responsibility, which is why many drivers carry more than the state minimum. Limits and requirements differ depending on where you live.
Also Known As
PD Liability
PDL
Property Damage Coverage
Third-Party Property Damage
Used in Context
- After rear-ending another car at a stoplight, your property damage liability paid to repair the other driver's bumper up to your policy limit.
- When comparing quotes through Dreamy Leads, you noticed each plan listed a separate property damage liability limit as the third number in the split.
- Because you backed into a neighbor's fence, your property damage liability covered the repair cost while your collision coverage handled your own vehicle.
Does property damage liability cover my own car?
No. Property damage liability only pays for damage you cause to other people's property, like their vehicle, fence, or building. To cover repairs to your own car after an at-fault crash, you'd need collision coverage, which is separate from your liability coverage.
Is property damage liability required?
It's required in most states as part of minimum auto liability insurance, though the required dollar amount varies by state. Because state minimums are often low, many drivers choose higher limits to better protect themselves from out-of-pocket costs if they cause expensive damage.
What is the third number in a split limit?
In a split-limit policy, the third number represents your property damage liability limit—the most your insurer pays for damage you cause to others' property per accident. The first two numbers typically cover bodily injury per person and per accident.
Ready to compare insurance options?
Free quotes from licensed experts — no spam, no obligation, results in 60 seconds.
Get Free Quotes →