Auto Insurance
Property Damage Liability (PD)
Auto liability coverage that pays for damage you cause to another person's vehicle or property.
Last reviewed: May 2026 · Editorial methodology
Definition
Property damage liability pays to repair or replace another person's vehicle, fence, building, or other property when you are at fault in an accident. It is the third number in a split-limit policy — for example, 50/100/50 means $50,000 PD per accident. Minimum state requirements range from $5,000 (California) to $25,000 or more, but with the average new vehicle now exceeding $48,000, low PD limits leave you personally exposed. Unlike BI, PD does not cover damage to your own vehicle — that requires collision coverage. Always carry PD limits of at least $50,000–$100,000.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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