Every state sets minimum liability limits, but minimums can be low compared with the cost of vehicles and injuries. If your limits are exceeded, you can be personally responsible for the rest.
What property damage liability covers
It pays for damage you cause to other people's property, mostly their vehicles, but also fences, buildings and other items. It does not pay for your own car, which needs collision coverage.
Why minimums can fall short
- New and used vehicles can cost far more than a minimum limit.
- Multi-car crashes can add up quickly.
- Damage to commercial property or infrastructure can be costly.
- You may be sued for amounts above your limits.
How to choose
- Check your state's minimum requirements.
- Consider the value of cars and property around you.
- Think about your assets and income that could be at risk.
- Ask your agent about higher limits and an umbrella policy.
- Compare quotes, since higher property limits are often inexpensive.
Related coverage
Also review bodily injury liability and uninsured motorist coverage. See our guide to uninsured and underinsured motorist coverage.
Frequently asked questions
Does liability insurance cover my own car?
No. That requires collision or comprehensive coverage.
What happens if damages exceed my limit?
You may be personally liable for the excess.