Auto insurance coverage that pays for damage you cause to another person's property in an at-fault accident, including their vehicle, fence, building, or other structures. Most states require minimum property damage liability coverage.
Related Terms
Coverage Limit
The maximum amount an insurance company will pay for a covered loss under a policy. Limits can apply per occurrence, per person, or as an aggregate over the policy period. Choosing the right coverage limit is one of the most important decisions when buying insurance.
Bodily Injury Liability
Auto insurance coverage that pays for injuries you cause to other people in an accident where you are at fault. It covers medical bills, lost wages, pain and suffering, and legal defense costs. Most states require minimum bodily injury liability coverage.
Liability Coverage
Insurance that pays for bodily injury and property damage you cause to others. In auto insurance, liability coverage is required in almost every state. It does not cover your own injuries or vehicle damage — you need collision and comprehensive coverage for that.